The acceleration of innovation is growing exponentially and as per a Boston Consulting Group Report, digital lending will grow 5X in next 5 years to hit $1Tn by 2023 – in India. The report further lays out a winning agenda for Industry applicable to both FinTechs and incumbents.
LendFoundry as a platform aligns with this agenda and can provide the Lenders the “tech” to power their FinTech ambitions, quickly launch and massively scale digital lending programs.
The report states this is not the digitization of existing process but making the borrower journey frictionless and intuitive. We at LendFoundry believe that the borrower experience has to be based on borrower demographics and be controlled by the borrower. Hence, along with an out-of-box borrower portal, it is possible for lenders to create custom experiences using the LendFoundry API’s. This allows for an Omni-channel onboarding via the web, mobile, CRM’s – when, how and where the borrower wants and seek help only when needed.
The Lenders have enough data to personalize the offers, says the report. In LendFoundry, in addition to personalized financial products and offers, the borrower experience can be personalized. Driven by data, a lender can now effortlessly ask borrowers for more/ less/ different information and documents. Lenders may actually leverage customer data to pre-approve loans. Our automated API platform would offer faster solutions for time-sensitive lending decisions like the point of sales or healthcare lending.
Data is the new oil, it powers the digital economy. Lenders, who can leverage captive data along with that obtained from external sources, will have a winning edge. LendFoundry provides a Data Extractor to make available the data in a Data Warehouse, where it can be combined with any other data sources and consumed by Lenders who want to use it.
The report recommends that the lenders have a ‘digital ready’, scalable, secure, evolving tech platform, along with their own Intellectual Property. The technology at LendFoundry is built keeping these guiding principles in mind. Build on micro-services architecture, with horizontal scaling and in-built failover mechanisms. The platform has been built keeping SOC guidelines in mind and is continuously evolving. LendFoundry enables to effortlessly scale the infrastructure need for varying demands, which are very common in this industry.
A regulatory sandbox concept which allows FinTechs to experiment while reducing the cost of failure will push innovation. The regulatory authorities in India need to create this framework, says the report. LendFoundry is very well plugged into the ecosystem and is a thought leader in the industry. We spend the time to go to various events and connect with various stakeholders.
As the report says “it is impossible for one company to do it all” – the market is getting disrupted with niche offerings in each link of the chain. A technical platform of the future is one that facilitates collaboration between various entities in the ecosystem – Originators, Credit Agencies, Data Providers, Capital Intermediaries – in a seamless and secure manner while respecting the privacy of consumer data. These are the very tenets with which LendFoundry is built.
UPI, e-KYC, e-Sign, GSTN are all a reality today thanks to the “Digital India” initiative by the government of India. In addition, lenders can utilize data from credit bureaus, banking transactions, utility bill payments, mobile behavior. The report says – ‘A Data Utility which brings all these data pools together and facilitates digital lending can, therefore, be a game changer for the financial services industry’.
With 80+ worldwide integrations to data providers, LendFoundry provides an umbrella which allows all this data to be aggregated, triangulated and referenced for lending. With a rules-driven decision and scoring engine, this data can be used to validate eligibility and makes it easier to use the power of machine learning to constantly evolve the models.
Lenders will need skilled resources in UI/UX Design, Solution Architecture, Agile Product Managers, Scrum Masters etc., highlights the report. These niche skills are difficult to find and retain. A good option for lenders would be to partner with companies in the tech domain to hire these skills. At LendFoundry we recognize this and offer services to our clients which they need to be the winners. With an experience of working with Lenders globally who have originated and serviced Billions of Dollars of loans; we are a great resource to our clients, with technical teams spread across India and US.
The large projects which took years to make and deploy are contrary to the new paradigm of agility and adaptability to changing consumer needs. The teams will need to be cross-functional with domain and tech working hand in hand. With a sprint based delivery model and years of software development expertise, the LendFoundry team is well entrenched in the concept. We can now help Lenders go live with Digital Lending initiatives in weeks/months instead of years and also constantly deliver innovation on an ongoing basis.
Digital Lending will involve a radical shift in the strategy and operations of Lenders – creating a storm of sorts. People will be affected. Only the leaders who manage this by harnessing the best of both worlds will succeed warns the report.
The Digital Lending Opportunity is “here and now”. Time-to-market would be a key determinant for Lenders. LendFoundry is ready – are you?