Collections Dossier: May 2024

From Potential to Profit with GenAI

AI has shot to the top of the executive agenda and ushered in a new world of business opportunities—and executives are eager to capitalize on them. A survey taken by BCG of over 1,400 C-suite executives highlights the rapid impact of GenAI on businesses, with significant gaps emerging between leaders and observers.

While 54% of executives expect AI to bring cost savings in 2024, many are still in the wait-and-see mode or engaging in limited experiments. Winners, however, are leveraging AI for productivity gains and top-line growth, focusing on upskilling, managing AI costs, building strategic relationships, and implementing responsible AI principles. The survey indicates a shift in priorities, with 71% planning increased tech investments in 2024, especially in AI and GenAI. However, challenges like talent shortages and unclear strategies hinder progress. Only 6% have extensively upskilled their workforce on GenAI. Winners stand out by investing significantly in AI, upskilling systematically, managing costs proactively, building partnerships, and prioritizing responsible AI practices.

Looking ahead, the BCG report suggests that successful organizations should Deploy GenAI in everyday tasks to realize 10% to 20% productivity potential, reshape critical functions for 30% to 50% enhancement in efficiency and effectiveness, and invent new business models to stay competitive. These actions can lead to tangible benefits such as enhanced productivity, revenue growth, and long-term competitive advantage in the evolving GenAI landscape. Read More

Rewired and running ahead: Digital and AI leaders are leaving the rest behind

While most business leaders may accept the need to incorporate digital and AI more deeply into their business, many remain skeptical of the effort and investment involved, wondering if it will add up to sustainable outperformance.

A research by McKinsey highlights the significant gap between digital and AI leaders and other industry players, with a 60% increase in maturity spread over three years. Leading companies are not only harnessing digital and AI to create value but also doing so more rapidly, distancing themselves further from competitors. They emphasize that building digital and AI capabilities adds tangible value, with leaders outperforming laggards by two to six times in total shareholder returns (TSR) across sectors. The key lies in investing in a holistic set of capabilities that are difficult to replicate, enabling companies to target, pursue, and capture value consistently.

McKinsey suggests that people falling behind can bridge this gap by focusing on strategic deployment of digital and AI innovations and committing to building essential capabilities, potentially leading to significant improvements in digital maturity and financial performance within a few years. Read More

How Credgenics Is Using AI & ML To Help Banks & FIs Improve Debt Collection By 25%

The Indian fintech space is poised to reach $2.1 trillion by 2030, with digital lending projected to exceed $1.3 trillion. However, challenges like stressed loans and NPAs are likely to persist. Credgenics, a leader in the debt collection technology space, helps financial institutions manage these risks strategically.

Read this article where Meha Agarwal from Inc42 Media spoke to Anand Agrawal , Co-founder and CPTO, Credgenics, to understand how Credgenics has disrupted collections by leveraging AI and digital-first strategies, and reduced collection costs and time by 40% and 30%, respectively. Through AI and ML models, Credgenics has achieved remarkable efficiencies, such as increasing collection rates by 90-92% and reducing costs by 20-35%. Its comprehensive product stack and focus on customer engagement highlight its position as a leading player in debt collections.

Navigating Challenges with AI-Enhanced Online Dispute Resolution

The emergence of AI-powered online dispute resolution platforms marks a turning point in debt collection strategies. These platforms leverage the power of artificial intelligence, data analytics, and machine learning algorithms to streamline communications, automate negotiation, and facilitate smoother resolution processes.

Read this article in INDIAai by Mayank Khera, Co-founder and COO, Credgenics where he shares his insights on how AI-enhanced Online Dispute Resolution offers a promising solution to the challenges in debt collection, enhances fairness and accessibility - leading to a faster and mutually beneficial outcome for all stakeholders.

5 Ways Fintech is Impacting the Finance Industry

The fintech industry's pace of innovation has not only digitized traditional processes but has also changed how consumers access financial services. Everyday account management no longer necessitates face-to-face interactions; instead, it can be personalized with a simple tap, right from the comfort of one's home.

This transformation is fueled by the expansion of the banking sector, rapid integration of digital technologies, shifts in consumer preferences, and growing support from investors and regulatory authorities.

Discover more about the impact of fintech on the finance industry in the blog, "5 Ways Fintech is Impacting the Finance Industry " and learn about the significance of fintech in the financial landscape and market forecasts for the coming years amid its exponential growth.

Credgenics wins the 2023 ASK Private Wealth Hurun India Future Unicorn Award

Credgenics is thrilled to be honored with the 2023 ASK Private Wealth Hurun India Future Unicorn Award. The ASK Private Wealth Hurun India Future Unicorn Index 2023 is a ranking of India’s start-ups founded in the 2000s, worth at least US$200mn, not yet listed on a public exchange, and most likely to ‘go Unicorn’ within three years (Gazelles) or five years (Cheetahs). It aims to showcase India’s rapidly growing startup ecosystem and is based on regulatory filings, feedback from entrepreneurs, and input from active India-focused VC funds and angel investors.

Credgenics’ recognition as a Cheetah in the SaaS sector, representing high-growth potential start-ups with valuations estimated between US$200 million and US$500 million, serves as a resounding testament to the exceptional standards that Credgenics has set for the technology-led transformation of the financial services ecosystem in the area of debt collections.

Notably, Rishabh Goel , CEO, Credgenics, and Anand Agrawal, CPTO, Credgenics, are among the youngest start-up founders in the ASK Private Wealth Hurun India Future Unicorn Index 2023's Cheetah category. Their ingenuity exemplifies the limitless potential of entrepreneurship.

Credgenics emerges as the largest recognized ODR start-up in India by size, scale, volumes, and revenue

Credgenics announced its status as India’s largest Online Dispute Resolution (ODR) startup based on size, scale, volumes, and revenue. Supported by its versatile technology platform, Credgenics provides a simplified digital approach to resolving financial disputes using its ODR framework, innovative tech-driven processes, and legal expertise to ensure faster, affordable, and convenient resolutions.

Having managed $70 billion in repayments and handling 2.5 million unique disputes monthly, with a growth rate of 20%, Credgenics is reshaping debt resolution practices in India. Its comprehensive suite of services includes arbitration, pre-litigation mediation / conciliation, credit counseling, and coverage across 16,000 pin codes and 10 languages nationwide, serving prominent banks, fintech lenders, NBFCs, and ARCs.

Credgenics is committed to empowering individuals in transparently and inclusively navigating financial disputes, positioning itself as a leader in ODR for delivering fair and efficient resolutions in today’s digital landscape. Read more.

Taking a deep dive into ARC business

When it comes to reducing retail non-performing assets in the Indian financial services sector, the role of Asset Reconstruction Companies has been instrumental. This has helped in promoting financial inclusion in India and expanding credit access by bringing funds back into the credit cycle.

ARCs have been propelled to the forefront as the regulators and lenders transition towards innovative solutions and a proactive approach to improve the financial health of the Indian banking sector.         

Read this blog ‘Taking a Deep dive into ARC business ’ to understand the current landscape of NPAs in India and the function of ARCs in resolving them, regulatory framework governing their operations and the opportunities and challenges as ARCs strive to work in collaboration with lenders to resolve stressed assets.

Shaping the future of collections - Transforming Collection Operations

Traditional approach to debt collections with repetitive calls, generic bulk letters, and unplanned field visits often result in poor collections efficiency and a high cost of recovery. Credgenics is addressing these challenges and transforming collections by employing digital-first and data-driven strategies.

Watch the video series titled “Shaping the Future of Debt Collections ”, where Puneet Sharma , Director – Operations, Credgenics, shares his insights on Credgenics’ approach to enhancing customer experience, expediting outreach, and ensuring personalized interactions that address individual preferences and financial challenges sensitively.

Enabling a data-driven and digital approach to legal collections

A leading Non-Banking Finance Company in India transformed its legal collections processes by adopting Credgenics Litigation Management System (LMS). This move aimed to automate and track debt recovery activities efficiently. Through an extensive evaluation, the company chose Credgenics LMS for its comprehensive automation capabilities, enabling real-time visibility, cost tracking, and digital communications throughout the collections lifecycle.

Credgenics streamlined workflows, provided accurate cost views, and facilitated digital transmission of legal communications, enhancing litigation tracking, reporting, and analysis for improved recoveries.

The outcomes were notable, with a 25% increase in recovery rates, 60% higher notice delivery rates, and a 60% reduction in resource costs. Download the case study to discover how Credgenics’ implementation of chatbots, AI, and IVR enhanced borrower query resolution and operational efficiency.

Collections Analytics

Lenders are harnessing analytics for improving debt collections as they transition from traditional bulk processes to tailored strategic models. It increases recovery rates while reducing the cost to collect and enhancing customer relationships.

Introducing Credgenics Collections Analytics, a solution empowering collections teams to expedite loan recovery through ML-based risk segmentation, strategic channel prioritization, and prediction of borrower intent to pay.         

With Credgenics Collections Analytics, lenders’ collections teams can implement a comprehensive framework for optimal contact strategy, personalize borrower interactions through tailored communications and leverage AI and ML-driven insights to enhance collection outcomes.

Explore how Credgenics Collections Analytics can transform your debt collections process.

Grand opening of Credgenics' new office in Hyderabad

Credgenics is delighted to announce the grand opening of our new office in the City of Pearls – Hyderabad! Here's to scaling new heights and creating a lasting impact together!

Customer Testimonial : LiquiLoans

Credgenics continues to drive innovation and deliver tangible business value for its customers in the debt management and resolution space.

Amit Kothari, Head of Collections at LiquiLoans, India's leading P2P NBFC, shares his thoughts on how Credgenics has significantly elevated customer experience, effortlessly digitized outreach across multiple channels, and ensured collections are carried out promptly, in full compliance, and with utmost effectiveness.

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