Client:
Our client, an NBFC (Non-Banking Financial Company) registered with the RBI, leverages technology to provide easy lending solutions. Established in 2015, the company has successfully served over 5,000 SME customers, offering rapid and efficient loan services.
Challenge:
Speed and Efficiency in Loan Approvals: The initial hurdle in any loan application system is the Know Your Customer (KYC) process. Our client grappled with disparate systems to verify the customer’s credentials, investment holdings and compute eligible loan amounts – entailing a host of manual and semi-manual processes, which threatened to bottleneck their ambitious approval and disbursal timelines.
Another complexity arose from integrating various third-party providers of Mutual Funds and Shares, such as CAMS, KFintech and NSDL. The system could only facilitate loans against each provider individually, demanding users to submit separate loan applications for securities held in each entity. Moreover, the clearance of loans via the National Clearing House necessitated a distinct application to share details with the clearing house. In response, our client sought to implement a future-ready system to enhance agility and overcome all these challenges.
Our Strategy:
By introducing an innovative microlending product, the client wanted to make good on their promise of money in the bank in under 4 hours, ensuring a significant competitive advantage over established banks and other NBFCs. This is where Chimera stepped in to build their new loan application system. We decided to create a verbose and efficient web application to resolve the issue. We embarked on a journey to first create a loosely coupled web application that will be available for end users. We developed a platform which enables the business process to disburse the loan on the basis of their financial assets.
Our Solution:
Pioneering a Streamlined Loan Application System: To expedite the KYC process, our client embraced instant KYC through C-KYC and DigiLocker, doing away with the cumbersome manual document upload for users. The option to verify from uploaded documents was still retained and enabled through OCR. Additionally, we streamlined the loan application by integrating eNACH (Electronic National Automated Clearing House), eliminating the need for a separate data sharing process with the National Clearing House. Functionality is also being implemented that integrates CAMS/KFintech with a central mutual fund, to enable the aggregation of securities across both platforms for loan processing. For the end user, this would mean getting a single loan against all the mutual funds they own.
Business Outcome:
Transforming Loan Processing and Business Growth: The implementation of our new and improved system has yielded remarkable results. KYC times have been reduced by a remarkable 90%, speeding up the entire process. There has been a significant decrease in customer drop-off rates thanks to the seamless application experience for end users. Moreover, the system’s revamped architecture has enabled the client to extend its reach beyond direct customers to include partnerships with leading Fintech firms in India.
Tech Stack:
Angular 9, HTML5, CSS3, Bootstrap, Typescript, Python 2.6 & 3.6, Django, MySQL