Significance of Debt Resolution Platform for NBFCs

NBFC

As the world is facing the impact of Coronavirus, every country’s financial position has deteriorated owing to complete halt of its economic activities. Now the entire burden of sustaining the economy is on the shoulders of bank’s reserves and policies. Across the globe, every country’s banking sector is responsible for empowering its economic and social development.

To maintain the country’s economic health, our Indian government has been taking unprecedented steps in order to push fresh lending and some of its measures include approving additional funding at concessional rates and opening fresh emergency credit lines for MSME(s) while focus remains on contactless lending.

The RBI has also been taking regular measures and offering regular relief pertaining to stressed assets to the banking sector and announcing liquidity push for the banks and the non-bank lenders by regularly announcing rate cuts in order to push and incentivize lending. All this has been done with the view to boost the credit flow in the system.

These measures will provide temporary relief but may hit the profitability targets of banks & NBFCs. The key challenge going forward for Indian banks & NBFCs is to expand their credit portfolio and effectively manage NPAs (Non Performing Assets) while maintaining profitability. While better regulatory framework and government stimulus are some of the answers, the immediate help players in the space need is containing and better managing recovery and resolution of debt in their books.

Delhi based Credgenics today formally unveiled India’s first of its kind debt resolution platform which combines the power of artificial intelligence with data science to optimize and standardize the debt collection activities. An end to end SaaS based collection management tool, it delivers customized strategies and recommends optimal legal routes to facilitate faster resolution of stressed assets which helps creditors efficiently improve their NPA, geographic reach and customer on-boarding.

Rishabh Goel, Co-Founder & CEO, Credgenics, said, “While AI and ML have been around for a while and applied in many areas, their power and ability to predict recovery chances based on multiple parameters including defaulters personality information, demographics, language, EMI payments and communication follow-up trends, has never been leveraged or deployed in a structured manner.

Our proprietary model does that exactly and significantly reduces the debt collection cost making unit economics more viable for lenders.  The new platform redefines the buckets basis recovery chance, delinquency days and different communication channels leading to increased collection and reduction of expected time to resolution.”

Platforms like Credgenics are addressing this growing NPA concern and helping lenders reduce their bad loans via it’s first of its kind debt resolution platform which combines the power of artificial intelligence with data science to optimize and standardize the debt collection activities. The platform full stack collection as a service model and delivers customized strategies and recommends optimal legal routes to facilitate faster resolution of stressed assets which helps creditors efficiently improve their NPA, geographic reach and customer on-boarding.

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