As India continues to evolve and grow as an economy, financial inclusion has become extremely important to the country. This entails providing affordable and accessible financial services to a wider bandwidth of people across the social spectrum. That is exactly what new-age fintech lenders like SimplyCash have managed to accomplish. Leveraging cutting-edge technology, instant personal loan apps like SimplyCash have been able to solve pain points that consumers face across the lending value chain by offering easier access to credit, faster decisions and prompter credit.
In the process, digital lending has become an enabler of India’s goal of financial inclusion.
How Digital Lending is Changing the Credit Landscape in India
One of the new breed of technology-driven lenders, SimplyCash (powered by Hero FinCorp) focuses on using advanced technology to create a seamless user experience and drive operational efficiency. Here is how technology is making the difference for these lenders and helping drive digital lending.
1. Use of Alternative Credit Decisioning Models that Help Crunch Time
Digital lenders like SimplyCash rely on alternative credit decisioning (ACD) models that enable them to rely on non-traditional credit data such as purchasing behaviour, transaction preferences, social and geographical data analysis, and more. The ACD approach not only assists them in risk assessment but also simplifies the underwriting process by eliminating the need for physical documentation.
2. Use of Advanced Technologies and Tools for Better Recovery
By leveraging artificial intelligence and machine learning into their downstream lending activities, new age lenders are improving their collection and delinquency management techniques. SimplyCash, for eg, uses technology to help minimise EMI bounce rates by ensuring that customers get regular email and SMS reminders.
3. Minimal Online Customer Interaction
Since digital footprint and third party data is used for verification and eligibility criteria (main drop-off points that are key to the traditional lending process), there is minimal interaction needed with the customer. It also slashes operational costs for the lender.
4. Use of Easy and User-friendly Digital Platforms
The whole process happens through easy and customer-friendly user interfaces. Take for eg the SimplyCash app, which is designed to enhance the total customer experience while maintaining transparency.
Widespread Reach and More Power to Consumers
The power of digital lending could be easily witnessed through the SimplyCash app. As India faced the brunt of the COVID-19 pandemic and people desperately searched for instant personal loans for home improvement, business expansaion, education and other financial emergencies, SimplyCash delivered with speed. Its cutting-edge tech platform has also enabled it to reach out to the most distant parts of India, where traditional lenders are reluctant to lend.
As the lending landscape changes in India, thanks to technology-driven players such as SimplyCash, it is also expected to narrow down the credit gap of India. To put things in perspective, India’s household debt contribution to GDP currently stands at just 12.4% (as per ceicdata.com), vastly lower than its neighbour China (62.1%), or say Japan (65.2%), Malayasia (93.2%) or for that matter UK (96.6%).
“We were successfully able to disburse Rs 200 crores in 10 months. Because of technology, we could lend to various clusters of credit-deserving people who did not have quick access to money. That is the goal of SimplyCash—to make credit accessible to all credit-deserving Indians who have been underserved so far,” says Prashant Chopra, National Manager, Digital, Hero FinCorp.