The smart, intelligent learning platform developed by CreditMate automatically matches lenders to agencies across regions. It improves speed and security, and helps lenders track the collection process in real-time with the help of live dashboards, data analytics, and insights, says Jonathan Bill, Co-founder, and CEO, CreditMate, in conversation with Anupama Mehra of Elets News Network (ENN).
How through technology-based solutions CreditMate is helping in better recovery of EMIs?
The smart, intelligent learning platform developed by CreditMate automatically matches lenders to agencies across regions. It improves speed and security and helps lenders track the collection process in real-time with the help of live dashboards, data analytics, and insights. CreditMate provides coverage and visibility across all of India with access to over 100 agencies. Furthermore, the data is stored in a secure environment which is 100 percent regulatory compliant.
For borrowers, there is an automated billing and reconciliation, and resolutions at the lowest possible cost. Other advantages are multiple payment options, including cash pick up, cash drop points and also digital payments. Moreover, collection agents on our platform are vetted and verified (ID and background crime checks are done too), ensuring the highest level of data and cash security.
What challenges are you facing being in the collection industry?
Every month, 10 percent to 15 percent of loan repayments fail to be collected from the bank accounts on the due date (depending on product type), thus putting hundreds of billions of dollars at risk. At the country level, it contributes to 11 percent of Non-performing Assets (NPAs). Our platform will reduce inconsistencies in unsecured and secured personal lending, and improve the overall experience for the borrowers.
The current debt collection process is highly fragmented and linear. Lenders are receiving collection updates from different agencies, in a multitude of states, in varied formats, at times which causes delays in the collection process. Our system allows for real-time reporting in centralised format across all regions which makes performance analysis simple. Our collections process is less linear and more parallel.
What steps are you taking to empower your Borrowers to get a better credit scores?
We have developed educational videos and digital messaging campaigns in local languages that help borrowers to understand the importance of good credit scores.
What are the new innovations you are planning for the next year?
We are introducing a Technology powered ‘Skip Trace’ capability to enable us to locate wilful defaulters. Our first true ‘Machine Learning’ resolution module is currently in test and will roll out in the coming months. Aside from this we will also be continually refining our platform to deliver optimised customer experience for borrowers and lenders and encourage industry-wide best practice.
How has it been 2019 for the company so far?
Our platform went live with third-party lenders three months ago. There are 12 lenders on board currently. It has resulted in several million dollars of collections so far, with $8 million in June alone.
CreditMate technology has led to a 15-20 percent increase in collections from the lenders it has partnered and is on track to fulfill its vision of empowering borrowers with better credit scores and lenders with improved lending performance.
Considering there are 200 million consumer loans disbursed in India annually, CreditMate is staring at a massive lending market (growing at 28 percent) which it can organise and influence.
Collections are a reality of lending whether in India or in other markets for small or new Fintech lenders to massive multinational banks. Our platform provides insights, optimisation , and efficiencies for all as well as empowering Collection Agents with better performance and improved resolutions.