Slice Shifts Focus to Secured Loans in Fintech-to-Bank Pivot

Slice Shifts Focus Towards Secured Lending

Slice, the Indian financial services company, has been undergoing a significant transformation since its merger-led transition into a bank in 2024. According to the bank's top executive, managing director and chief executive Rajan Bajaj, the company is moving away from its almost fully unsecured lending portfolio.

As of now, secured lending accounts for about 22% of Slice's portfolio. However, the bank is optimistic about the growth prospects of this segment. In an interview, Bajaj revealed that secured lending is expected to become the dominant segment over the next decade. This shift in focus is a deliberate strategy to reduce risk and increase stability in the company's loan book.

The transition from an unsecured to a secured lending portfolio is expected to have a lasting impact on Slice's financials. As the company continues to diversify its loan book, investors and analysts will be closely watching its progress. With secured lending poised to become the dominant segment, Slice is likely to emerge as a major player in the Indian banking sector.

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