From Collaterals to Clicks: The Transformation of Lending in India

Ganesh Krishnan

The world is evolving, and the digital lending landscape is not left behind. As a part of a significant conversation, Ganesh Krishnan, Director, Value Engineering, Lentra, presented a tech-presentation outlining the challenges, opportunities, and future of digital lending in India and beyond at Elets 14th NBFC100 Tech Summit, organised on 2nd August 2023, in Chennai.

Challenges in Implementing Lending Solutions

Digital lending is a journey filled with challenges. Some of the notable difficulties include:

  • Ever-changing consumer preferences: The differences in the functionalities that various departments within a company would like to have, along with variations in the journey like secured home loans or unsecured personal loans, pose a unique challenge.
  • Hardwired systems: Systems requiring code changes are often inflexible and may lead to difficulties in recreating the fundamentals of the journey or capturing specific verification data.
  • Complexity in policies: Triangulation of data from various sources and the writing of complex rules often require a timeconsuming release from the delivery plan.
  • Plan V/s reality: While the leadership might expect a go-live in a short period, the actual User Acceptance Testing (UAT) and individual user requirements may push the original plan off course.
  • Total cost of ownership (TCO) analysis for on-prem solutions: Procuring hardware servers, networking, security, and considering scalability are all part of this complex process.

Opportunities and Solutions with Lentra

Comprehensive lending ecosystem
Lentra provides a one-stop solution for digital lending, catering to various sectors and products. Lentra stands for Lending Transformation, where the microsystems work independently, offering a single, configurable, API-first component-based digital lending platform.

Flagship products of Lentra:

  • GoNoGo: A highly customizable workflowbased product that allows configuring screens, fields, and other elements. Every single stage of a typical lending journey from sourcing to your disbursement is configurable with this system.
  • MultiBureau: A highly-configurable rulebased, trademarked and bureau-agnostic platform.
  • Go-Getr: A plug-and-play API bus with 250+ third-party APIs, including 60+ OEMs.
  • Cadenz: A data analytics tool providing a 360-degree view of the customer for hyper-personalized offers, to increase conversion rates.
  • BRE (Business Rule Engine): A unified credit decisioning system, where data is taken from all the souces including third party sources, and can execute at any stage of the workflow.
  • 1LMS: A single Loan Management System catering to all products, and from a single screen you can do all the functionality required in a typical loan servicing lifecycle.
  • Recon, Analytics, and more: Lentra offers an extensive suite of tools and services tailored for various lending needs.

The Super 60 Process
Lentra’s innovative Super 60 process allows lenders to go live in flat 60 days. Pre-configured journeys, credit policies, and third-party interfaces provide a rapid rollout, reducing go-to-market time.

Also Read | From NPAs to Innovation: The Future of Lending in India

The Transformation of Lending in India
Lending in India has seen a 360-degree change. From the days when borrowers had to pledge valuable assets to money lenders at exorbitant interest rates, the scenario has changed to lenders actively finding ways to lend without collateral, even at the touch of a button.

Conclusion
Lentra’s comprehensive approach to addressing the challenges in the lending industry and providing innovative solutions positions them as a leader in the field. The insight provided by Ganesh Krishnan reveals the commitment to transforming the digital lending landscape, reflecting a bright and flexible future for lenders and borrowers alike. It’s a testament to how far India has come in the lending journey, marking a significant shift towards a more accessible and digitally-enabled financial system.

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