Optimising Lending with Finarkein

Rajesh and Meera, two small business owners, both applied for loans to expand their ventures. Rajesh’s lender relied on outdated, manual processes, while Meera’s lender, used cutting-edge digital technology, leveraging real-time data and predictive analytics.

Rajesh’s loan process was quite long and stressful, because he had to visit the bank multiple times, collect and submit physical documents, and wait weeks for manual verification and loan approval. He was stuck waiting for a long time before his loan finally got approved.?

In contrast, Meera gave her consent digitally through the Account Aggregator system. This allowed her instant access to her verified financial data, and her loan got approved within ten minutes.

This incident highlights the growing gap between traditional lending processes and smarter, more efficient solutions. Gone are the days when lending was just about approving loans and moving on. What if lending could think smarter, act faster, and work smoother?

Let’s dive in and explore how leveraging real-time data, predictive analytics, and automated workflows can revolutionise the way lending works.

Optimising Loan Underwriting?

Underwriting is the heartbeat of any lending process. It’s where critical decisions are made, and accuracy and speed can make or break the borrower’s experience.?

Yet, traditional underwriting methods often stumble, as they rely on manual document verification, leading to delays, inefficiencies, and missed opportunities.

Now, imagine a different reality, one where underwriting isn’t bogged down by paperwork but powered by intelligence!?

By integrating alternative data sources like financial transactions and behavioural insights, lenders can look at methods apart from traditional underwriting methods to understand a borrower’s finances. This allows lenders to make decisions faster and in a more informed manner, assess new-to-credit customers effectively, and even offer enhanced credit limits based on deeper insights.

We integrate multiple data sources such as bank statements, GST filings, mutual fund investments, and ITRs into a single workflow, eliminating the need for manual verification. By providing access to real-time, accurate financial data, we also allow lenders to make more informed and timely lending decisions.

Mitigating Default Risks?

The power of proactive monitoring cannot be understated. The work has just started once a loan is disbursed! The real challenge is to ensure financial stability.?

By tracking daily financial data like account balances and spending patterns, we help lenders spot risks before they escalate. What sets this approach apart is the ability to act quickly. With real-time alerts, lenders can intervene early, thus preventing defaults, and mitigating any default risks!

In fact, this proactive approach can reduce loan defaults by up to 14%, making it a win-win for both borrowers and lenders.?

At Finarkein, we're not just streamlining lending but we're revolutionising it.? We aim to transform lending into a smarter, faster service that's ready for the future.

Stay tuned for the second part of our blog to read more!