Collections Dossier: August 2024
Credgenics
A FinTech reimagining Loan Collections and Debt Resolutions through its market leading technology platform
Technology Trends Outlook 2024
Despite challenging overall market conditions, continuing investments in frontier technologies promise substantial future growth in enterprise adoption. Read this McKinsey report to find out the most critical technology trends in 2024 for companies, which include generative AI, electrification, and renewables.
Generative AI has seen a remarkable surge in interest, with applications across industries from customer service to drug discovery. This technology is driving rapid advancements and significant investments, making it a central focus for businesses looking to innovate and remain competitive. Similarly, electrification and renewables are attracting the highest levels of investment, reflecting their crucial role in the global push for sustainability and energy security.
The long-term outlook for these technologies remains optimistic, with continued growth and adoption expected to shape the future of business, thereby reflecting a positive long-term trajectory in the 15 most critical technology trends in 2024 for companies, which include generative AI, electrification, and renewables.
Will RBI's new gambit Unified Lending Interface be a game changer like UPI?
The Reserve Bank of India (RBI) is preparing to launch a new digital platform called the Unified Lending Interface (ULI). This platform aims to streamline and democratize the lending process, much like how the Unified Payments Interface (UPI) revolutionized digital payments in India. The ULI will allow multiple lenders, including banks and non-banking financial companies, to offer loans through a single interface. This could significantly enhance access to credit for individuals and small businesses, potentially transforming the lending landscape in India. Read more
Digital set to grab lion's share of bank deposits and credit disbursals, says RBI
The Reserve Bank of India (RBI) indicates that digital platforms are poised to dominate bank deposits and credit disbursals. According to a recent RBI survey, the adoption of digital banking is rapidly increasing, leading to a significant shift from traditional banking methods. As customers increasingly prefer online services for deposits and loans, digital channels are expected to capture the majority of the banking sector’s future growth. This trend reflects the growing reliance on technology-driven financial solutions across the country. Read more .
Regulatory Principles for Management of Model Risks in Credit: RBI
The Reserve Bank of India (RBI) has issued a draft circular outlining regulatory principles for managing model risks in credit across regulated entities (REs) such as banks and non-banking financial companies. These entities use various models for credit-related decisions, but these models are inherently risky due to reliance on assumptions that may not hold true in real-world scenarios.
The circular mandates a robust governance and validation framework to ensure the accuracy and reliability of these models, emphasizing independent vetting, thorough documentation, and regular reviews. RBI is reinforcing the need for a structured, transparent, and accountable approach to managing model risks in credit, with strict guidelines for governance, validation, and regular oversight to mitigate potential risks and enhance decision-making reliability. Read more.
Managing festive season debt: Five smart strategies to enjoy stress-free festivities
Managing festive season debt effectively is essential to maintaining an individual’s financial health. Anand Agrawal , Co-Founder and CPTO, Credgenics, shared his insights with LiveMint on practical tips to stay on top of finances while enjoying the holiday season.
He emphasized the importance of planning and disciplined spending. He adds that by setting a budget, prioritizing essential purchases, and avoiding impulse buys, individuals can enjoy the festivities without the burden of post-holiday debt.
The future of Financial Dispute Resolution: ODR in the BFSI
In recent years, India has seen a significant transformation in how people manage their finances and conduct transactions. The rise of fintech platforms has made credit more accessible, especially to underserved segments. However, this growth has also led to debt repayment and recovery challenges, often resulting in legal complications such as cheque-bouncing cases and litigation.
Read this article by Mayank Khera , Co-founder and COO, Credgenics, in BW Legal World, where he discusses The future of Financial Dispute Resolutions and innovative solutions like Online Dispute Resolution (ODR) that are addressing the gaps and transforming the financial dispute resolution landscape by offering digital-centric, efficient, and transparent dispute resolution without court intervention.
How loan settlements impact your CIBIL score and how to fix a bad report
Maintaining a strong credit score is crucial to obtaining future credit at favourable terms. As consumers navigate complex credit systems, understanding how actions like loan settlements impact their CIBIL scores is vital for long-term financial health. With this article in CNBC-TV18, Anand Agrawal , Co-Founder and CPTO, Credgenics, shares his insights into this critical issue.
He discusses the importance of not just being aware of credit score, but actively managing it, especially after loan settlements. He highlights diligent financial practices to build credit score such as a positive payment history, maintaining a low credit utilization ratio and avoiding multiple loans within a short period of time.
RBI to banks, NBFCs: Check wilful defaulters in NPA accounts with outstanding amount of Rs 25 lakh or more
In the current financial ecosystem, the importance of vigilant oversight and robust risk management practices cannot be overstated. With the RBI's latest Master Direction on the Treatment of Wilful Defaulters and Large Defaulters, urging banks and NBFCs to scrutinize wilful defaulters in NPA accounts with outstanding amounts of ?25 lakh or more, the industry is poised for a significant shift. This move highlights the need for advanced solutions to identify and manage credit risks effectively.
Mayank Khera , Co-founder and COO, shares his key insights with Business Today on how technology and data-driven approaches are vital in enhancing the efficacy of these regulatory measures and how Credgenics is dedicated to empowering financial institutions with cutting-edge tools that streamline debt resolution processes while ensuring compliance with evolving regulatory standards.
The rise of Fintech SROs: Balancing innovation and regulation in India’s financial landscape
India's fintech sector is booming, but with rapid growth comes the need for robust regulation. There is a need for a refined regulatory approach, which is balanced, comprehensive, and future-ready. This is where Fintech Self-Regulatory Organizations (SROs) come into play—transformative entities reshaping India's financial landscape.
These SROs are more than just regulators; they're catalysts for a secure, dynamic, and forward-thinking financial ecosystem. By fostering innovation while ensuring compliance, they're crucial in creating an environment where both startups and established financial entities can thrive.
Key Insights include an in-depth exploration of Fintech SROs' pivotal role, how SROs foster innovation while ensuring compliance, the growing importance of regulatory oversight in Fintech, and key challenges and opportunities in the evolving regulatory space. Read this blog to explore how Fintech SROs are shaping a balanced, innovative future for India's financial sector.
Credgenics adjudged as the winner in the ‘Best BFSI Partner—Mature’ category by the FICCI and Indian Banks’ Association (IBA) at the 5th PICUP Fintech Conference and Awards 2024
Credgenics is thrilled to announce its recognition by the Federation of Indian Chambers of Commerce and Industry (FICCI) and Indian Banks’ Association (IBA) at the 5th PICUP Fintech Conference and Awards 2024. Credgenics was adjudged as the winner in the ‘Best BFSI Partner—Mature’ category at the final awards ceremony held on August 7, 2024, at Federation House, FICCI, New Delhi.
The team was privileged to present the company’s vision and showcase its solutions' impact on debt collections and resolution across India and Southeast Asia. The PICUP Fintech Conference and Awards is a fantastic platform bringing together fintech leaders, bankers, NBFCs, insurance companies, technology experts, and policymakers to discuss the latest trends and innovations in financial services.
A big shoutout to our supportive customers and the incredible team for contributing toward this success and making this recognition possible. Read the coverage .
Credgenics wins the “Most Innovative Business Model” award at the 9th Global Economic Summit 2024
Credgenics is thrilled to announce that it has been honored with the prestigious ‘Most Innovative Business Model’ award at the 9th Global Economic Summit 2024 held from 8-10 Aug at World Trade Centre, Mumbai. This win reiterates Credgenics’ leadership in providing innovative technology solutions for debt collections in the banking and financial services sector.
Credgenics has established itself as a pivotal player in the ecosystem with its unique approach to digital transformation and pioneering use of AI / ML to make collection processes future-ready. With its focus on delivering superior business value for all stakeholders, Credgenics is unlocking new growth opportunities and actively facilitating a more inclusive and sustainable economic landscape.
Collections & Recovery Summit India 2024 - Panel Discussion
The panel discussion ‘Weaving Collections and Recovery into Business Strategy’ at the Collections & Recovery Summit India 2024 saw the esteemed panelists sharing deep insights, emerging trends, valuable learnings’ and impactful future strategies. The event held on 7-8 Aug, 2024, at The Leela Hotel, Mumbai, shaped up as a unique forum for industry leaders to unravel the next steps for transformation in debt recovery.
The panelists from diverse banking and financial services industry segments discussed a variety of topics, including the way forward for incorporating technology in processes, emerging regulatory requirements, focusing on customer experience, balancing revenue growth and customer loyalty objectives, educating borrowers, and applying personalized collection strategies.
Rishabh Goel , Co-founder and CEO, Credgenics, highlighted the criticality of integrating robust AI / ML capabilities, advantages of adopting advanced analytics, and the success in leveraging cutting edge technology for better outcomes.
He provided a comprehensive perspective on how businesses can effectively navigate the complexities of collections and recovery while maintaining strong customer relationships and achieving strategic objectives.
Justice Indira Banerjee at the Industry Roundtable on Online Dispute Resolution & Collections 2024
Credgenics recently had the privilege of hosting Hon’ble Ms. Justice Indira Banerjee, Former Judge of the Supreme Court of India, as the Chief Guest at our Industry Roundtable on Online Dispute Resolution.
Watch her keynote address , where she discusses the pivotal role that Online Dispute Resolution (ODR) plays in revolutionizing financial dispute resolution. She highlights the increasing importance of alternative dispute resolution methods, such as arbitration, which offer greater efficiency and flexibility compared to traditional court proceedings. She also elaborates on how digital innovations have enhanced the arbitration process through remote hearings and improved accessibility, thereby encouraging greater transparency and trust in the system.
Transforming Collections for Asset Reconstruction companies
With ARCs playing a significant role in debt aggregation, the adoption of sophisticated digital and analytical capabilities becomes imperative to increase collection success rates and enhance performance across loan segments in retail and SME lending sector.
Introducing the Credgenics Collections platform for ARCs, offering end-to-end retail debt collections, settlement management, automated trust settlement flows, mediation & credit counseling and legal notices management.
To learn more about how Credgenics enable ARCs to reduce operational costs with automated and digitized processes and improve resolution rates, visit our ARC webpage .
Introducing IncentiPay
IncentiPay by Credgenics is a reward-based digital repayment enabler for pre-delinquent and delinquent cases, designed to encourage borrowers to make timely digital payments. By leveraging predictive modeling, IncentiPay identifies borrowers capable of making payments and offers targeted rewards to positively influence their payment habits.
This approach not only accelerates debt collections and reduces late payments but also facilitates the transition from cash to digital payments, promoting a more efficient and modern repayment system. Watch this video to explore more.
Shaping the Future of Debt Collections
Digital collections have become essential for lenders due to their scalability, efficiency, and cost-effectiveness in today’s digital financial landscape. It enhances the customer experience by offering flexible, personalized, and convenient payment options while ensuring regulatory compliance, achieving higher resolution rates, and improving borrower engagement through targeted communication.
Adopting AI-powered digital collections models enables lenders to be agile and future-ready, meeting borrower expectations for respectful, non-intrusive interactions. In the video series, “Shaping the Future of Debt Collections,” Anurag Kumar , Director of Digital Collections at Credgenics, shares his insights on digital debt collections as a strategic, essential capability for banks and non-banking lending companies. He highlights how Credgenics stands out with its data-driven, customer-centric approach, integrating multiple digital channels into one seamless and effective platform for collections. Watch the video.
Case Finder: Empowering legal teams with effortless case management
Inefficient case management hinders debt recovery for lenders and financial institutions. Disintegrated sources, manual searches, and missed updates lead to costly oversights. Credgenics' Case Finder, an innovative and industry-first capability of the Credgenics Litigation Management System (LMS), addresses these challenges and transforms how legal teams search, save, track, and manage cases, including financial dispute resolutions.
Read this blog to discover how Case Finder offers a seamless, efficient approach to handling the complexities of legal research and case monitoring.
Key features of Case Finder that empower legal teams include real-time notifications on new cases, centralized repository for saved cases, advanced filtering and search capabilities, comprehensive case timelines and history tracking and seamless integration with the Credgenics platform.
Credgenics Townhall 2024
The recent Credgenics Townhall 2024 was a momentous event, where the co-founders and leadership team took the stage to present the company's stellar financial performance in a snapshot, groundbreaking product, and tech innovations, significant growth and expansion, and key achievements. They also outlined ambitious goals for 2025, delivering inspirational speeches that held excitement of promising times ahead.
It was truly remarkable to have the entire Credgenics team come together for the Townhall, where the session set an inspiring tone for achieving more milestones.
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