Quantafic works closely with country’s leading financiers in their technological and analytical initiatives. Quantafic has build a digitalised end to end customer acquisition platform powered by rule engine and advance analytics, says Sachin Kulkarni, Co-Founder and CEO, Quantafic Business Solutions, in conversation with Elets News Network (ENN).
Can you brief us on your new offering of digitalised platform
for customer acquisition?
Quantafic has built a digitalised platform for customer acquisition which helps Bank and NBFC to acquire customer using mobile application and machine learning based autofill of data from the application image. E-KYC, ID authentication, Multibureau, Name address match and Dedupe modules of this application allows verification of customer details from authenticated data sources. Application score card module allows to evaluate risk category of the customer and Risk based pricing can help in offering different price for different risk categories of the customer. Powerful rule engine allows credit team to define different credit surrogates so that maximum cases can be processes as straight through.
Java / J2EE technology provides highly scalable platform and allows Bank or NBFC to sanction the loan in few minutes.
How does your Advanced Analytics help your clients in the BFSI sector in combating fraud and risk?
Quantafic has been leveraging statistics, machine learning and other advanced analytical techniques to develop predictive models that quantify risk at the time of loan application, and later throughout the collection cycle.
At loan processing, these models are useful in three ways – for correct approval/rejection, for appropriate eligibility and Loan-To-Value (LTV) capping and for risk based pricing. These models are also adaptable by banks for Probability of Default (PD) modeling.
Our fraud prediction models are specialised models that work by aiding the sampling process of Risk Control Unit (RCU). On liability and credit card transaction side, we have developed specialised modelling framework to curtail the fraudulent transactions – these can be implemented using our advanced Rule Engine for customised implementation of scorecards and rules, and a real time decision making.
Similarly, we have been building predictive models for clients at each stage of collection cycle – pre-presentation indication of potential defaults to help in pre-emptive telecalling and reminders, mid-month predictions to optimise instrument representation, pre-Non Performing Asset models in specific Diffusion Pressure Deficit (DPD) buckets, and recovery models to suggest best intervention for efficient recovery. Some of these models can be applied for Loss Given Default (LGD) quantification that help not only in containing risk and fraud, but also generate more business through smarter preapprovals.
Tell us about MasterConnect. What role does it play in streamlining the services?
MasterConnect encompasses multiple sources like online Permanent Account Number verification, Unique Identification validation, credit bureaus, internal dedupe engine, etc. So you can connect to one or more credit bureaus parallelly and aggregate the results – the results can be shown in one single format which you prefer. Other internal sources like internal vendors, employees, blacklisted individuals, etc. can be connected.
Most importantly, the MasterConnect is powered by our rule engine that helps configure rules like which bureaus to enquire from, in what situation, which internal credit scorecard to be executed for which schemes, different eligibility computations, LTV caps, etc. and choosing best offers.
A well known NBFC uses our solution for fastest loan decisioning with highest possible loan amount in less than five minutes. For this, nearly forty schemes are configured in our system and the system chooses the scheme which yields highest eligibility.
Your products and services cater to the requirements of both banks and NBFCs. What are your views pertaining to the growth of the NBFC sector?
Non-Banking Financial Companies (NBFCs) typically operate on a different market segment than most banks, making them a necessary part of the country’s financial sector. Apart from market segment, many NBFCs have also developed USPs that are difficult to replicate. These USPs are generally in the form of process efficiency driven by technology and/or analytics – the exact area where Quantafic is poised to support.
For NBFCs to sustain growth in such hard times, it is important for them to optimise the resources and maximise each opportunity. This will be difficult if they do not actively invest in analytics based decision making, right from tracking target vs. achievement, automated Key Performance Indicator (KPI) monitoring, customer value management and customer retention, and activating existing client-base through up sell/cross-sell based marketing campaigns.
Which of your current products do you see as a potential game-changer for NBFCs?
Our applications like Q-IRIS for fraud / RCU function, Q-Mandate for Mandate Management and Risk Based Pricing are unique offerings helping multiple financial institutions. Today, bigger setups have dedicated RCU depts. and are responsible for regular screening and sampling of files,
investigation on other reported frauds, collection frauds, internal employee frauds, etc. RCU depts. use emails, right from initiating inquiry, sending sample data to interactions during investigations and final action. This becomes a risk when the customer data is sent to external agencies. Also, the tracking of unresolved inquiries, tracking of end to end TAT, billing of each agency basis their rate sheets in custom formats become a nightmare.
Q-Iris helps RCU depts. with each step of their core process, right from sampling to tracking investigations, verification of asset and field investigation reports, month-end billing of vendors, etc. The solution has integrated state-of-the-art Rule Engine (same as MasterConnect) along with statistical fraud scorecard for sampling document scientifically.
We see Q-Iris as an important tool for the industry to tackle the frauds, by handling volumes of through-the-door cases in a streamlined way.
Our second product, Q-Mandate, is designed for the Operations departments of NBFCs, who play an important role behind the curtains. When a loan is authorised, the repayment mode (typically, ACH) needs to be registered. After this, the installment is presented every month for each customer and the same is fed back to LMS. This is a mammoth manual task and financiers face risk of delays in presentation, incorrect presentation, missing on status submission to internal systems, etc. Older loan contracts may have ECS or even direct debits in some cases. Our solution automates daily processing of all this thus enabling management teams to focus their attention on other important issues.