Businesses today are moving toward integrated, specialized, and intelligent strategies for effective customer engagement and retention. With the advent of Artificial Intelligence (AI), Natural Language Processing (NLP), and Robotic Process Automation (RPA), the banking and financial services industry is leveraging new possibilities in digital transformation. With 600 million smartphone users¹ in India, and social media facilitating faster information exchange, powerful…
The demand for high-speed and seamless internet services is rising quickly across the nation as a result of India’s rapid foray into the digital transformation path, particularly in the financial services sector. According to a survey report¹, more than nine out of ten mobile phone users in India, complained about poor wireless connectivity, and two-thirds struggled with disrupted digital payments on…
Over the past decade, the financial services sector has evolved tremendously, thanks to developments such as access to smartphones, internet penetration, simpler digital payments, data sharing, financial inclusion initiatives, and the rise of FinTechs. One resulting trend is the advent of new lending models that didn’t exist earlier. For instance, a person seeking a loan to pay for an expensive…
The number of retail loans in India has surged from 35 million in March 2020 to 60 million by end of March 2022 as per an Equifax overview report¹. The report also highlighted that the portfolio outstanding amount jumped 25% from INR 71 billion in March 2020 to INR 89 billion in March 2022. While the growth has been promising…
Over the last few years, the field of data science has come into prominence, primarily because the volume of data generated and captured has multiplied exponentially with growing digitization. Data science is fascinating because it brings together various domains such as mathematics, statistics, computer science, data analysis, predictive analysis, machine learning, and artificial intelligence. In an age where data is everywhere,…
Launching a recurring auto-debit feature Many of the loan customers for banks and NBFCs end up defaulting on their EMIs due to the auto-debit facility not being set up correctly, or failure. Such inadvertent missed repayments may hamper the credit profiles of genuine customers. On the other side of the spectrum, failed payments for lenders can quickly turn into lost…
Experience the future of debt collections at the 11th World Finance Innovation Series Indonesia, Jakarta on October 4 – 5, 2022 Indonesia became the world’s 16th largest economy, with a GDP of more than $1 trillion in 2020. To realize its vision of becoming the 5th to 7th largest economy by 2045, Indonesia has embarked on a holistic path of…
Customer experience is a key enabler for customer loyalty. This aspect is no different when it comes to the banking and financial services industry. The rise of FinTech and digital lenders compelled traditional banks and non-banking lenders to include customer experience as a key priority. As per a McKinsey research¹, leaders in the banking industry delivered 55% higher total shareholder…
As per reports by the World Bank¹, emerging markets and developing countries are expected to bear a major economic brunt of the ongoing Russia-Ukraine war. Global energy prices and commodity prices have been pushed up by ongoing conflicts. Retail inflation in India grew by a mammoth 7.8 percent² in April 2022. To address the rising costs, the Reserve Bank of India (RBI) raised…
Debt collections is an important pillar in lending as it directly impacts the lender’s overall revenue and profitability. Growing purchasing power is accelerating the consumption of debt-based products in India, thereby, creating a promising growth opportunity for lenders. But at the same time, the need to recover debts is also increasing due to multiple factors. This brings forth the need…
Over the last seven years, gross non-performing assets (NPAs) of public sector banks (PSBs) have doubled¹, going from INR 2.24 trillion in 2014 to INR 5.40 trillion in 2021. As per a Reserve Bank of India (RBI) report², the gross non-performing assets (NPAs) of banks may increase from 6.9% in September 2021 to 8.1% by September 2022 under the baseline scenario and to…
Are your Loan Collection Mechanisms Future-Ready? As the world tries to return to a semblance of normalcy in a post-pandemic world, the lending industry is seeing some respite. A recent Moody’s report¹ expects growth in bank loans to accelerate to 12-13% in FY 23 aided by increasing corporate earnings and easing of funding constraints for NBFCs. An Icra report² predicts an 8.9-10.2 per cent…