Credit Assessment for major lender

About our customer

The client is one of the biggest NBFC in India dealing in housing, auto and personal loans

Industry

Banking, Finance

Use Case

Credit Risk, Underwriting

Developed and implemented an automation platform for processing loan application and credit assessment.

The Challenge

The financial industry in India has traditionally been run by deploying large number of personnel on the ground to manage application and verification processes. This has led to slow processes with potential for frauds. The challenges facing our client were:

  • Inability to target 'thin-file' customers due to lack of credit history
  • High processing time involved in document collection and data processing
  • Fraudulent transactions through the use of fake documents

The Approach

We developed and deployed multiple solutions for this client to solve each of their problems:

Developed a mobile app for instant loan applications

Developed a credit assessment engine and scorecard using alternate thousands of data points from alternate sources

Developed a machine learning based image processing algorithm for digitizing identity cards and bank statement and verification from authorized sources

Utilized image processing algorithms for creating an individual's financial profile from bank statements

The Outcome

The client's loan disbursals increased by 10% in the first month while the processing times reduced by more than 50% which translated to an impact of INR 120Mn for the month.

Capabilities Enabled

Deployed an end-to-end loan disbursal platform based on latest machine learning and databases technology thus cutting down the processing time by 50% while improving the credit assessment criteria to reduce bad loans

Impact Created

  • Increased loan disbursals by more than 10% in the first month
  • Reduced processing times by more than 50%
  • Reduced processing cost by 12%
  • Reduced fraud rates by 3%