Lend.In Recognized as the Top Vendor in 'Emerging Category' in the Commercial Loan Origination Report by Aite Group
A recent report by BCG indicates that over the next five years, digital lending is an unmissable 1 trillion-dollar opportunity. This has been spurred on by lending undergoing a massive transformation, especially in developing economies that are likely to become data rich before being economically rich. India has been leading the charge in this transformation with its government initiatives like Aadhaar, Bharat Bill Payment System, India Stack, GSTN, and consent architecture to create a data-rich footprint for citizens and reducing the operational cost for provisioning financial products. Furthermore, it has been projected that the APAC region’s middle class will span more than 3.5 people. Concurrently, this will create a demand growth 1000 times larger than that of the industrial era, which will result in strong and sustained economic growth in these regions.
Kuliza, a leading software company that powers digital business for financial enterprises, rebrands its former flagship product, Digital Lending Suite to Lend.In. The lending landscape had disrupted with rising fintechs, government initiatives and increase in customer’s willingness to adopt digital mediums. One of the recent report by BCG indicates that the digital lending possesses 1 trillion USD opportunity over the next five years. This creates a massive opportunity for new-age lending systems to help lending institutions transform their business to beat the competition.
Credit assessment and evaluation is one of the most crucial functions in lending. However, this is also the most difficult function that most financial institutions struggle with. Banks and lending institution often face challenges in assessing the creditworthiness of loan applicants. Approval of loans for credit-unworthy individuals can make a huge impact on the lending institution as the risk associated with the repayment of such loans increases manifold.
A lot of business makers are always stuck at digitalization of lending process because of a lack of benchmarks in the Indian context. From my experience here is an average benchmark digital cost per digital loan application. This cost indicator is just the cost of a digital loan application. This does not include the costs of underwriting, operations, PD and field inspections. Since the cost for these vary from company to company, it is difficult to arrive at a value range. However a good benchmark for this will be to approximate around 30-60% of the offline processing costs for these overheads.
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