July 2018 \ Business & Investment \ EMPIRE FEATURE

Digital & regulatory evolutions have transformed the lending landscape

Lending an impetus to financial inclusion

A recent report by BCG indicates that over the next five years, digital lending is an unmissable 1 trillion-dollar opportunity. This has been spurred on by lending undergoing a massive transformation, especially in developing economies that are likely to become data rich before being economically rich.

India has been leading the charge in this transformation with its government initiatives like Aadhaar, Bharat Bill Payment System, India Stack, GSTN, and consent architecture to create a data-rich footprint for citizens and reducing the operational cost for provisioning financial products. Furthermore, it has been projected that the APAC region’s middle class will span more than 3.5 people. Concurrently, this will create a demand growth 1000 times larger than that of the industrial era, which will result in strong and sustained economic growth in these regions. 

Reimagining legacy systems

In the history of lending, the lower middle-class population was always considered less creditworthy by lenders due to lack of data or credibility for majority of potential customers. This was primarily due to knowledge asymmetry and the presence of legacy systems in the market.

Banks and NBFCs will need to move towards high volume, low value transactions to cater to massive new demand and stay relevant in the market. They will need to enable data-driven decisions, which cannot be orchestrated on physical mediums due to massive cost & time incurred. The current legacy systems used by lending institutions also fail to achieve processing efficiencies due to lack of transparency and absence of data in a structured format.

Lending institutions using legacy systems will need to completely redesign every aspect of their business and technology stack to power this change. Unfortunately, with the rise of emerging fintechs, banks and NBFCs have limited time to accelerate their businesses. Lending institutions that can’t support digital and algorithm-driven lending in this changing landscape are mostly going to become obsolete.

How can banks and NBFCs change the game?

Banks and NBFCs need a new-age lending system that is agile, scalable and secure. A new age lending system can provide them with the flexibility to customize and personalize loan products tailored to the specific needs of a wide range of customers, leveraging their (customers') digital footprints to enhance credit decisioning.

Kuliza’s flagship lending product, Lend.In, combines Digital Origination Suite comprising of Omnichannel Workflow Manager, Digital Experience Manager, Credit Engine and Integration broker with its Operational Intelligence Suite comprising of Cognitive Data Hub, Early Warning Systems, Lending Analytics etc. to provide end-to-end lending solutions to automate any given business process while having a significant impact on both top-line and bottom line of enterprises.

Lend.in enables banks and NBFCs to achieve the following:

•    Build the entire loan journey in a matter of days.

•    Define the workflow parameters with ZERO knowledge of coding, saving loads of effort.

•    Omnichannel origination and interaction integrated across mediums.

•    70+ pre-integrations to enable straight-through processing of loans and also accelerating speed to market.

•    Data-driven AI-powered Early Warning Systems & Credit Decisioning.

Lend.In will act as a catalyst for lending institutions enable digital and data driven lending, and in the process prepare them to be the market leaders in the future.

—To learn more about Kuliza’s flagship product Lend.In, visit www.getlend.in and for more information about Kuliza, visit www.kuliza.com.


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