Collections Dossier: Mar 2024

How generative AI can help banks manage risk and compliance

Over the next five years, generative AI (Gen AI) is set to transform risk management within financial institutions, offering streamlined processes ranging from compliance to climate risk mitigation. This technological advancement holds the promise of boosting productivity across various industries, particularly in financial services, by automating tasks and synthesizing unstructured data.

Read this report by McKinsey, which underscores the importance of adopting a flexible approach to Gen AI implementation. By doing so, banks can effectively leverage this technology to enhance efficiency and efficacy in managing risks and compliance. This approach facilitates strategic risk prevention and encourages collaboration among different business lines. Consequently, there's a gradual shift towards Gen AI's powered risk intelligence centers, which facilitate streamlined decision-making, enhance risk transparency, and automate policy updates. To fully realize the potential of Gen AI, organizations need to prioritize use cases, invest in robust data infrastructure, and nurture talent proficient in Gen AI technologies. Additionally, it's imperative for risk management strategies to address emerging risks associated with Gen AI, including biased outputs, privacy concerns, and security threats.

As organizations embark on this transformative journey, finding a balance between harnessing Gen AI's capabilities and managing its inherent risks is paramount. By doing so, they can achieve sustainable productivity gains while effectively navigating the complexities of the evolving risk landscape.

Financial services in an era of discontinuities

Today, a steady stream of innovative technological and scientific developments is constantly ushering in breakthroughs that continue to impact the financial services sector—where trust is fundamental and security is essential.

Read this report by Deloitte, which explores the transformative impact of technological and scientific advancements on the financial services sector, projecting significant changes by 2030. It identifies five potential "worlds" shaping the future: Inner World, Mirror World, Off World, War World, and Habitable World, each offering opportunities and risks for financial services. How leaders choose to approach these impending changes could have a very long-lasting impact on a business’s competitive advantage.

Leaders must prioritize data privacy and cybersecurity, recognizing data control's growing influence. They also face the challenge of aligning profitable opportunities with positive societal outcomes, particularly in sustainability, necessitating substantial investments. Collaboration between government, technology, and financial services sectors is crucial for leveraging emerging networks and platforms for positive change and rebuilding trust in the industry. Ultimately, leaders must anticipate and adapt to potential future scenarios, leveraging historical insights to navigate challenges and capitalize on opportunities for inclusive growth.

The winds of change: Credgenics shaping debt disputes resolution with its strong ODR framework

The Indian fintech industry is rapidly evolving, making financial services more accessible, especially for those historically underserved. With the emergence of new-age dispute solutions like Online Dispute Resolution (ODR), the situation has improved vastly. The integration of ODR is crucial for proficiently resolving financial disputes through digital tools, ensuring transparency, expediting conflict resolution, and meeting the evolving needs of modern financial services. Addressing this need is Credgenics, the pioneering company for debt collections and resolutions, offering arbitration platforms, pre-litigation mediation, conciliation, and credit counseling services, serving leading banks, fintech lenders, NBFCs, and ARCs across India.

Read this in-depth article by Mayank Khera, Co-founder and COO, Credgenics, where he shares his insights on ODR and highlights how Credgenics is reshaping debt resolution through its comprehensive ODR framework, ensuring fair and efficient dispute resolution in the digital age.

Role of Generative AI in financial services

Recent statistics show a sharp increase in the use of generative AI in financial services, with McKinsey estimating its global value at $2.6 trillion to $4.4 trillion. Banking, in particular, could see annual benefits ranging from $200 billion to $340 billion. Factors driving this surge include advancements in ML algorithms, growing data volumes, and cost-saving opportunities.

Generative AI is applied across various areas like customer service, investment strategies, cybersecurity, debt collections, and marketing, improving both customer satisfaction and operational efficiency. However, successful implementation requires a user-centric approach and robust change management, and financial institutions must prioritize user experience and embrace comprehensive change management to fully realize its benefits.

Read the blog titled "Role of Generative AI in Financial Services " to explore factors driving the increasing adoption of Generative AI in financial services, emerging use cases of Generative AI gaining momentum, and the importance of implementing a comprehensive change management plan when scaling up generative AI.

CARS24 Financial Services digitizes Collections Management with Credgenics

Credgenics is thrilled to announce its strategic technology engagement with Cars24 Financial Services, a modern NBFC specializing in car financing and a wholly-owned subsidiary of CARS24, India’s leading AutoTech company. This collaboration aims to digitize collections management at Cars24 Financial Services and reflects the company's dedication to offering innovative financial products with a hassle-free customer experience.

Credgenics SaaS platform, deployed by Cars24 Financial Services, unlocks efficiencies in collections management with data insights backed by strategic recommendations, a digital-first approach, personalized communications, and optimized field operations. Catering to both the pre-due and post-due stages, Credgenics platform facilitates a swift transition from traditional to data-driven models, utilizing automation and advanced machine learning for a fully digitized ecosystem.

This partnership underscores a commitment to innovation, efficiency, and delivering superior customer experiences in the digital lending landscape, poised to revolutionize the automotive financing sector and set new industry standards. Read more .

Dun & Bradstreet BFSI & Fintech Awards - Credgenics winner of 'Best use of AI / ML in Debt Collection'

Credgenics is delighted to share that it has been honored with the prestigious award for 'Use of AI/ML in Debt Collection' by Dun & Bradstreet India at the 16th edition of its flagship event, 'BFSI & Fintech Summit 2024' among leading BFSI and Fintech companies.

Credgenics is leading the charge in digital disruption within the BFSI sector by setting new benchmarks in innovation, excellence, and customer-centricity. Through its adept use of digital technologies, Credgenics is reshaping the landscape of loan collections, making them more accessible and cost-effective. Its ability to adapt to changing business models and customer preferences further solidifies its position as a game changer in the industry. Read more .

SaaSBoom Awards '23 - Credgenics winner of 'Build for Bharat SaaS Startup'

Credgenics is elated to be the proud winner of the ‘Build for Bharat SaaS Startup’ Award at the prestigious SaaSBoomi Awards 2023 for its relentless pursuit of innovation and customer-centric approach. Adding to the excitement is also our achievement as the runner-up in the ‘Breakout SaaS Startup’ category. The recognition from SaaSBoomi underscores Credgenics’ position as a leader in the debt management and resolution space that continues to drive meaningful innovation and deliver tangible business value for its customers.

The SaasBoomi Awards program, an initiative by the leading community of SaaS founders, honours SaaS companies that are doing extraordinarily well in their spaces and that exemplify authenticity and integrity in nine categories. These prestigious awards are designed to spotlight exemplary startups that epitomize the essence of the Indian SaaS sector, of which Credgenics is proud to be a part. Read more .

Digital Debt Collections - Collections powered with AI, automation, and analytics

The retail debt collections industry has faced challenges due to its one-size-fits-all approach, persistent generic communications, and inefficient operations. These pose a potential risk to the brand’s reputation, non-compliance with regulatory requirements, and the huge cost of collections.

Credgenics provides comprehensive capability for Digital Collections, which enables lenders to harness advanced ML-powered capabilities for strategizing, automating, and digitizing the entire process from pre-due to post-due stages. Credgenics platform adopts a consultative approach to digital contactability across the 5 levers of digital communication- Channel, Language, Content, Intensity, and Time of communications which results in improved debt recovery, reduced costs, and enhanced borrower experiences. Explore more .

Billzy Payments Direct Debit for instant digital loan repayments in Indonesia

Beyond the lack of financial resources, borrowers are unable to meet repayment obligations due to various factors, such as insufficient information regarding repayment amounts or the deadlines for monthly payments.

Credgenics helps lending companies address these challenges with the platform’s new capability - Billzy Direct Debit, aiming to further streamline loan repayments. The enhanced features include a one-click checkout option, support for recurring debits, instant settlement in compliance with regulatory standards, and reduced transaction fees compared to credit card transactions, benefiting both banks and Multi Finance Companies (MFCs).

Read the blog ‘Billzy Payments Direct Debit for instant digital loan repayments in Indonesia ’ to understand what makes Credgenics Billzy Direct Debit a must-have for digital borrower journeys in Indonesia.

UPI Collect Debt Payments

Streamlining digital debt collections involves addressing issues like high transaction fees, settlement delays, and the complexity of payment platforms, particularly for small ticket size loans.

Credgenics UPI Collect simplifies the process for lenders by facilitating effortless digital repayments. Through the CG Collect mobile app, field teams can send UPI collect requests to one or multiple borrowers simultaneously, or bulk requests can be managed via the Credgenics platform.

With UPI Collect, borrowers can conveniently make payments using any UPI app, leading to simplified payment processes, enhanced borrower satisfaction and retention, reduced transaction costs and operational expenses, faster deployment and time-to-market due to seamless integration into the Credgenics platform.

Download the brochure to learn more about the offering.

Reducing Roll Rates in Collections with digital and data

A diversified financial services provider, catering to the financial needs of millions in rural and semi-urban India, leveraged Credgenics’ debt collections technology platform by deploying the right mix of omnichannel communications, language-based segmentation, and digital workflows for borrower outreach.

The implementation resulted in a 40% reduction in roll rates for pre-due customers, a 15% reduction in roll rates for post-due customers, and a 3% roll rate benchmark performance for a targeted cohort.

Download the case study to discover how Credgenics’ strategic omnichannel communication approach enabled the lender to reduce collection roll rates.

Customer Speaks

Credgenics technology is transforming the collections processes at SaveIN, India’s premier fintech platform for healthcare.

Read what Shivank Tiwari, Senior Manager (Collections) at SaveIN, has to say about the platform’s remarkable capabilities in handling end-to-end delivery for borrower communications.

Subscribe to Credgenics' monthly Newsletter - Collections Dossier

Visit us at Credgenics LinkedIn page.