Pepper Advantage, a global credit intelligence supplier and industry leader in credit management, risk management, and data analytics, has added an Artificial Intelligence edge to its services with the acquisition of Rieom.ai, which debuted in May of this year. With the acquisition of the AI-driven credit management software platform, Pepper Advantage can now add a predictive, pre-payout credit approval tool to its product line and is well-positioned to continue its rapid expansion.
The acquisition also contributes to Pepper Advantage’s plans to expand its AI-powered credit management approach throughout Southeast Asia and the Middle East. The Pepper Group already has a presence in developed markets such as Australia, the United Kingdom, Europe, South Korea, Japan, and South-East Asia. Pepper Advantage will leverage its global and local expertise, as well as its experience and data-driven approach to collections and credit management, to secure next-level growth for Indian businesses, helping Indians to improve their financial well-being.
The company has already set up significant centres in major Indian cities such as Mumbai, Chennai, Delhi, Bangalore, Ahmedabad, Kolkata, Lucknow, and Kochi. Future plans include expanding its applicable market in India to include Fintech, Microfinance Companies, Small Finance Businesses, Co-Operative Banks, Insurance, and Government Institutions in order to manage and service their credit portfolios, with a focus on clients who assist underserved communities. Retail and Micro, Small and Medium Enterprise (MSME) clients account for more than 40% of Pepper Advantage’s client base. MSME, a lively and dynamic sector of the Indian economy, is actively incorporating Fintech into their operations to boost productivity and product demand.
Commenting on the rapid growth, Mukund Kulkarni, CEO, Pepper Advantage, said, “The gross Non-Performing Assets within the Indian banking system are currently estimated at almost USD 85 billion (INR 7 Lakh Crore). Pepper Advantage is well placed to grow in this space as we are one of the only providers that offers comprehensive end-to-end financial services solutions, catering to the diverse needs of banks and non-bank lenders, significantly minimizing risk and optimizing credit assessments. Our offering has helped us add 17 prominent financial services clients in India over the past year to our growing portfolio, and we are on track to add another 5 to 6 clients by the end of the fiscal year (March 2024). This success emphasizes the critical role that credit management and risk assessment services play in mitigating financial risks for lenders.”
With over 200 million loan applications processed annually from banks, NBFCs, and microfinance companies, the credit management sector in India has seen a surge in demand for outsourced services such as KYC verification, credit score checks, collection activities, and legal support in NPA management. Pepper Advantage has effectively provided a one-stop shop for credit management and collection, master and backup servicing, investment processes, and transaction consulting services in this thriving sector. The company’s commitment to providing cutting-edge technology and efficient services has resulted in a 200% increase in assets under management (AUM) within a year.
