Collections Dossier: January 2024

Five priorities for harnessing the power of GenAI in banking

GenAI holds immense transformative potential for banks with the right strategy, talent, and technology. While banks recognize its value, initial deployments are prioritizing back-office automation. Overcoming barriers like insufficient expertise and high costs requires a clear vision and the identification of suitable use cases. Robust governance is essential to managing risks related to data privacy, biased outcomes, and regulatory uncertainties.

GenAI, alongside trends like decentralized finance and tokenization, is reshaping banking, offering opportunities for innovation. Recent findings show that banks focus on automating sales activities, enhancing technological capabilities, and fostering broader innovation with GenAI. Despite challenges, banking leaders should move beyond legacy thinking, reimagining business models to address existential risks posed by disruptors.

Read this report by EY on the five priorities for harnessing the power of GenAI in banking and how to advance GenAI adoption. Firstly, they must envision business shifts by reimagining future models, leveraging GenAI capabilities to monetize data, and enhancing client engagement. Next, adopting an ecosystem approach allows banks to overcome tech constraints and access operational expertise through acquisitions or partnerships. Thirdly, banks should rebalance their innovation portfolio, going beyond automation to impact customer-facing and revenue operations.

Additionally, establishing a dedicated center of excellence or control tower approach facilitates early use case implementation and strengthens governance. Lastly, ensuring governance and controls are in place is crucial as GenAI introduces new risks, requiring banks to address employee usage, biases, and ethical considerations. Banks must recognize the urgency and dedicate resources to GenAI to transform and innovate while ensuring responsible use.

United We Thrive: The Untapped Power of Bank-Fintech Partnerships

Banks are increasingly turning to fintech partnerships for faster digital product design, time to market, and enhanced security. However, realizing the full value of these partnerships has proven challenging due to pitfalls such as vague business needs, unclear metrics, and opaque decision-making.

While banks spend significantly on digital transformation, partnerships often fall short of expectations, with 9.4 fintech partners per bank on average. Common partnership objectives include payment facilitation, fraud management, and mobile wallets, though success remains elusive.

Amidst the demand for digital interactions, spurred by the Covid-19 pandemic, read this report by Bain & Company as to why bank -fintech partnerships have become crucial for agility and flexibility. Overcoming pitfalls requires well-defined business needs, assessing build vs. partner trade-offs, and engaging key decision-makers early on. Implementation involves integrating technology and businesses, spanning the partnership process from initial contracts through proof of concept up to the point of going live. Effective management involves clear KPIs, structured governance, and a committed partnership team within the bank.

Ultimately, successful partnerships prioritize people and processes over technology, fostering trust and collaboration for mutual benefit.

Budget 2024: Startups Expect Measure To Push Growth Momentum

Startups are expecting positive measures in Budget 2024 that will help boost growth and provide further support to India’s startup ecosystem. While the upcoming Interim Budget on February 1 May does not include major announcements, various industries are anticipating some positive developments.

Rishabh Goel , Co-Founder & and CEO, Credgenics, shared his views with CNN-News18 on the eagerly awaited Union Budget 2024. He expects additional momentum for the fintech industry and the broader startup ecosystem, in view of the unprecedented credit growth exceeding Rs 50 lakh crore for retail loans. He added that regulatory frameworks implemented by the RBI have boosted the lending sector’s confidence, and there is anticipation that the budget will introduce measures supporting credit growth, financial inclusion, and the digital transformation of financial services.

He also highlighted expectations for favorable tax policies, especially regarding carry-forward losses and employee stock options, essential for a thriving startup sector. Additionally, he expressed that the outlook is for a forward-looking Budget that promotes innovation through targeted incentives, tax breaks, and streamlined regulations, enabling startups to make significant contributions to India’s economic growth. Read more.

Year Ender 2023: Innovative Startups Thrive - Tech and Healthcare Pioneers Lead the Way

In 2023, entrepreneurs pre-empted and adopted strategies that aligned with the key transformative trends. As the industry heads into 2024, the focus remains on driving innovation and empowering entrepreneurs in the dynamic landscape.

Read this article in Times Now where Rishabh Goel , Co-Founder and CEO, Credgenics, discusses the most significant game changer in the Indian Fintech Industry in 2023 - the proactive role of the Reserve Bank of India’s (RBI) in providing a structured regulatory framework for the fintech industry. He highlights the RBI’s initiatives, such as increasing risk weights for unsecured loans and introducing the default loss guarantee (DLG) in the digital lending space, as crucial developments that will contribute to facilitating a robust and secure digital lending environment.

Blessing in disguise. Can fintechs in debt recovery make their mark?

The surge in the lending business in India has given rise to an increased demand for debt recovery platforms. Projections indicate that the debt collection software market in India could exceed $272 million by 2027, driven by the growing influx of companies entering this sector. Digital lending apps, responsible for over 60% of non-bank loans, face challenges in achieving efficient collections but start-ups are emerging to tackle the inefficiencies in the $7 billion debt recovery business, where gross recoveries are currently below 10%.

Despite challenges such as technological disparities and concerns about reverting to traditional methods, the sustained success of collection technology will ultimately determine its lasting impact on the fintech and lending landscape.

In this businessline article, Rishabh Goel , Co-founder and CEO, Credgenics, highlights the company’s success in managing collections for a $60 billion loan book and millions of retail loan accounts. He emphasizes the pivotal role of specialist technology and data insights in improving resolution rates, reducing collections costs, and driving up legal efficiencies while showcasing a significant impact on various performance metrics. Read more .

Credgenics welcomes Mr. Ravindra Pandey as Strategic Advisor

Credgenics is delighted to welcome Mr. Ravindra Pandey, a distinguished veteran of the banking industry, as a Strategic Advisor to our leadership team. With an illustrious career spanning 37 years at the State Bank of India, Mr. Pandey brings a wealth of experience and a deep understanding of the banking sector, particularly in steering complex digital transformation initiatives.

His success in key roles such as Dy Managing Director & CIO and Dy MD (Corporate Strategy) & Chief Digital Officer at the State Bank of India, demonstrates his prowess as a banking strategist, a dynamic leader, and an advocate for innovation. His success in championing the adoption of emerging and disruptive processes in his role as a Digital Banking strategist underscores his commitment to driving positive change. Beyond his role at the State Bank of India, Mr. Pandey serves as an independent director on the boards of several esteemed organizations, showcasing his ability to provide strategic direction and uphold the highest standards of corporate governance and compliance culture.

In his capacity as a Strategic Advisor, Mr. Pandey will bring his insightful perspective and expertise to navigate Credgenics through the intricacies of the BFSI sector. His extensive knowledge and leadership in digital banking, credit management, and technology transformation will play a crucial role in propelling Credgenics to new heights of success. Read more .

The Fintech Repository: What is it and how will it create a robust Fintech ecosystem?

The Reserve Bank of India (RBI) has introduced a transformative initiative, the Fintech Repository, signaling a shift in its approach to handling financial innovation. Set to be operational by April 2024, this repository, managed by the Indian Financial Technology and Allied Services (IFTAS), aims to enhance the security and transparency of financial data.

It acts as a consolidated platform for diverse fintech information, streamlining processes and reducing operational costs. Fintech companies can voluntarily contribute real-time insights, fostering transparency, collaboration, and innovation. This initiative is anticipated to improve credit risk assessments, reduce loan defaults, and promote regulated technology adoption. The repository's extensive database also serves as a proactive tool against cyber threats, aligning with the RBI's goal of leveraging technology to fortify the regulatory framework and support sustainable fintech growth in India.

Read this blog to understand the collaborative journey between regulators and innovators and how the fintech repository is laying the groundwork for a dynamic, resilient, and trustworthy financial ecosystem, ensuring responsible fintech practices align with future developments.

Fintech trends in India: 2024

Mirroring global trends, the FinTech ecosystem is undergoing rapid technological advancements, driven by customer-centric approaches and collaborative business models. Anticipated to surpass the United States, the Asia-Pacific region, led by innovators like India, is poised to dominate the global FinTech market, fueled by cutting-edge innovations and a substantial underbanked population. As we approach 2024, exploring the imminent technology trends becomes crucial to understanding the evolving future of FinTech in India.

Read this blog for an insight into the key market trends set to dominate the market in 2024, innovations in technology making a pressing impact to further bolster growth in the financial services sector, and the expected growth towards 2030, as a result of multi-dimensional expansion in the global fintech ecosystem.

Co-lending and the massive potential for underserved credit segments

The Co-lending Model (CLM) in India has emerged as one of Reserve Bank of India’s most promising strategies to address the significant credit gap in underserved segments. Credit access is expanding as a result, particularly among economically weaker sections (EWS), low-income groups (LIG), and medium-income groups (MIG). The collaborative arrangement between banks and NBFCs not only helps both gain a wider reach in remote areas but also divides risk between the co-lenders, contributing to the stability of the lending ecosystem. Read the 'Co-lending and the massive potential for underserved credit segments' blog to gain insight into the provisions of a co-lending arrangement between banks and NBFCs, understand how the model benefits both borrowers and lenders and explore how the CLM is a gateway to enhanced financial inclusion and balanced economic growth.

Rewind 2023 - Product Growth Stories

As we reflect on the year 2023, we are thrilled to highlight our notable achievements, remarkable milestones, and impressive growth statistics.

The Credgenics platform has solidified its position as the preferred choice for over 100 lenders in 2023, enabling them to transform their debt collection processes by achieving a 90% resolution rate in the pre-due stage, a 27% increase in recoveries, a 60% enhancement in legal efficiency, a 40% boost in agent productivity, a 25% reduction in time to collect, and a 55% decrease in contact center costs.

As you tune into Credgenics Rewind2023 - Product Growth Stories , we are gearing up for the next chapter in 2024, where our primary focus will be on product innovation, establishing new industry standards, and steadfastly surpassing our leadership position.

Shaping the future of debt collections: Credgenics Litigation Management

Managing litigation in retail debt recovery involves navigating the process complexities and interdependence on other banking activities. Any disruption in the legal collections process can have a cascading effect, including significant financial risk.

In the video series titled “Shaping the Future of Debt Collections,” Antim Amlan, Senior Product Manager at Credgenics, delves into the innovative capabilities of Credgenics Litigation Management System. He elucidates how the system is empowering lenders to transition to a digitized, automated, and modern model. He emphasizes the platform’s advantages, such as minimized human intervention, reduced cost associated with Non-Performing Asset (NPA) recovery, enhanced visibility of processes, and adherence to timelines. Additionally, it streamlines the entire legal collections process by automating notice management, settlement portfolio management, and the comprehensive workflow for both pre-litigation and litigation cycles.

Watch this video to learn more about the Credgenics Litigation Management System.nt; they were milestones in our relentless pursuit of excellence. Each award speaks volumes about the dedication and expertise of the Credgenics team.

Rewind 2023 - Media Spotlight

The events and awards of 2023 are a testament to collaboration and success. Here’s to more innovation, more accolades, and an unwavering commitment to being at the forefront of industry excellence in 2024.

Credgenics, a pioneer in loan collections and debt resolution technology, took the spotlight in media discussions, news forums, and industry conversations in 2023.

The founders, Rishabh Goel , Anand Agrawal , and Mayank Khera , not only established themselves as thought leaders but also emerged as collections industry trendsetters across diverse platforms. Their perspectives received overwhelming support, generating an impressive 180 million web impressions. Join us as we revisit the eventful and exciting PR and communications journey with Credgenics Rewind2023 - Media Spotlight.

As we chart our course for 2024, our primary focus remains on setting the agenda for innovative discourse within the industry, providing deep insights that drive transformation, and collaborating closely with our customers to shape the future of debt collections.

Credgenius Hackathon 2023

Credgenius Hackathon 2023 was full of vibrant moments of creativity colliding with code and innovation taking center stage. It was a melting pot of diverse talents, equally enjoying the processes of coding, problem-solving, and engaging in varied discussions.

Catch a glimpse of the co-founders cheering on every team, the organizers working behind the scenes, and brainstorming sessions. As teams strategized across an all-nighter with coffee, enjoyable open mic sessions, and delectable delights – it was an extravaganza of creativity and camaraderie.

While the winning Team 'Brainiacs' clinched victory, walking away with a cool INR 1 lakh prize money, the runners-up Team 'Tech Titans' and Team 'Gang of Mishraji' took home INR 50,000 and INR 25,000, respectively.

Overall, it wasn’t just about coding; it was more about the energy, new bonds, and unbeatable enthusiasm that turned the Credgenics Hackathon into an unforgettable, almost transcendental experience!

How CG Collect is transforming field debt collections through UPI

As UPI reshapes the credit landscape, Credgenics CG Collect is transforming field debt collections through UPI Collect. This innovation empowers field collectors to request payments using borrowers' UPI IDs, providing several advantages such as immediate payment confirmation, establishing trust, providing detailed transaction histories, and simplifying tracking and reconciliation processes, thereby minimizing errors and improving accounting accuracy.

Read this blog ‘How CG Collect is transforming field debt collections through UPI’ to understand how Credgenics’ CG Collect mobile app is ensuring an enhanced digital collections experience for both borrowers and lenders through its UPI Collect capabilities.

Streamline recoveries with Billzy’s automated settlements

A prominent asset reconstruction company in India, managing over INR 500 billion in distressed industrial assets across 15 cities, faced challenges with its traditional settlement process. The intricate mapping between trust and loan accounts resulted in difficulties tracking repayments and caused time-consuming settlement processes.

Credgenics Billzy, a web and mobile platform, addressed these issues by providing real-time visibility into loan repayments, triggering payment links instantly, and sending them via email and SMS. The platform facilitated automatic trust settlement, integrated seamlessly with communication channels, and ensured data security with encryption and two-factor authentication.

Read this case study to understand how the leading asset reconstruction company in India streamlined recoveries with Billzy's automated payments, with outcomes that included INR 1 million collected digitally in the first month, a 100% success rate on payment links, 98% platform adoption for payments, and an 80% time saving by eliminating manual reconciliation.

Customer Speaks - Mintifi

With its digital-first approach and ML-based analytics, Credgenics' innovative debt collections platform is transforming the purchase financing experience at Mintifi.

Read what Hemant Bora, AVP New Initiatives, Mintifi, India's first deep-tier channel financing platform dedicated to revolutionizing SME lending in India, has to say about the swift integration of Credgenics' platform and its substantial impact on enhancing recovery rates, operational visibility, and team efficiency in field collections.

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