Lending Factory to Accelerate Digital Transformation Across Loan Life Cycle

The NBFCs have come a long way and now hold a significant ground in the Indian financial system. However, the fierce competition from Fintech innovations is posing formidable challenges to NBFCs, making it an imperative for the industry to learn and adapt to these disruptive technologies and gear up for the future, say Rama Krishna Raju and Pradeep Varma, the Founding Directors of Pennant, in conversation with Elets News Network (ENN).

The duo says that the above-mentioned dynamics paved the way for several new-age Solution Providers who can offer digital capabilities. The making good inroads into this arena, Pennant Technologies, a Hyderabad-based software company is extending a platform based software suite—Lending Factory. Supporting widest range of Lending Products across retail and corporate line of businesses in the Non-Banking Financial Institutions (NBFC) market, Lending Factory is a single solution, unlike most conventional product-based systems that can only support single line of business or only few selected products. Pennant was selected by a top-tier tech savvy NBFC to replace its old lending system, within a few months of Lending Factory’s launch in the Indian market. With this marquee client under its fold, Pennant managed to win multiple deals with various NBFCs and one new-age bank.

Rama Krishna Raju, Chief Executive Officer and Founding Director, says, “Financial organisations are innovating new business models to quickly structure and offer innovative products, adopting digital technologies to deliver products through the customer’s choice of channel with speedy turnaround times and automating all the processes across the life cycle of the loan to drive down operational costs enhancing operational efficiencies.” Pennant thoroughly factored all these business challenges and built the product with a proprietary future-proof framework. Lending Factory’s platform-based approach is the differentiating feature that enables customers to configure any type of loan product be it a personal loan, auto loan, gold loan, education loan, business loan or a loan against property.

“Our prudent approach in building our solution on open technologies enables the solution to scale up to any size and any volume. In addition Lending Factory’s technology agnostic, capability offers complete freedom to clients in choosing any platform, server, and database. These customer-centric features enable Pennant to implement Lending Factory either in-premise or completely on Cloud,” he adds.

Adding to that, Founding Director, Pradeep Varma says, “Separating product definitions and business rules from processing by adopting the unique concept of functional factories helped us offer high-level of configurability. Also, our modular and componentised approach offers unlimited flexibility across loan lifecycle. This strategy helped us achieve our goal of Maximum Configuration and Minimal Customisation.” “The successful implementation of Lending Factory at top-tier tech-savvy NBFC and also implementing the same as the core engine for their new end-to-end digital-only delivery initiative leveraging the repository of Application Programming Interface (APIs) across the life cycle speaks about the future proof capabilities of our suite,” Varma adds. Looking over the horizon, Pennant envisions being a leader in the Lending vertical by continuously adding new functional capabilities to its platform. Keeping a close eye on the changing dynamics in technology, Pennant seeks to adapt to developments that offer distinctive features to continue to sustain competitive differentiation.

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