As the lending industry attempts to fill in the gaps and scale at a faster pace, there is a proportionate increase in risks. Unpaid loans, regulatory risks, market risks, and operational risks are all potential reasons for businesses to run on losses and potentially go bankrupt. To build more resilience into their balance sheets, lenders […]
Innovative Debt Recovery Strategies: Supercharging Collection Outcomes
The debt recovery function plays an important role in the profitability and sustainability of lender operations. The inability to recover outstanding loan debt can diminish a lender’s finances. Escalation of bad loans can also lead to consequences such as bankruptcy and shutdown for lenders. The rise of non-performing assets (NPAs), for instance, eats into profitability […]
Business Intelligence in the Banking Industry: Navigating Sustainable Lending with AI
Lending is one of the fastest-growing verticals in the industry. Capitalising on the large credit gap among both business and consumer borrowers, Banks, non-banking financial companies, and other lenders view it as a high-potential revenue stream. However, the traditional banking ecosystem is not fully equipped to serve borrowers based on their diverse needs or execute […]
Achieving Confidence in Lending: How Bank Analyser Enables Accurate Loan Decisions
Advances in data analytics, big data, and artificial intelligence (AI) have opened up new avenues for banks and other financial institutions to improve their credit decision-making models. Additionally, the increasing appetite for digital transformation and sophisticated tech-driven services has translated into introducing innovative tools like bank analyser in the banking ecosystem. The Indian financial ecosystem […]
Early Warning Signals in Banks for Liquidity Profile of Businesses
Early warning signals (EWS) are indicators that help banks identify potential liquidity problems in businesses before they become critical. These signals help banks proactively manage their exposure and protect themselves from losses. The liquidity of a business is reflected in the abundance of its cash and readily convertible cash equivalents. Lenders prefer borrowers who have […]
How Account Aggregators are Using ‘Informed Consent’ and Revolutionising Digital Lending
When financial data is involved, consenting without the full knowledge of the terms and conditions can have trust-reducing consequences for consumers. This can make financial consumers more reluctant to consume important services like loans. On the other hand, consumers may also need to share the same data several times when applying to multiple service providers […]
Calculating DPD in Finance: Guide to Analysing Delinquency
As India’s lending ecosystem becomes increasingly digital and data-driven, monitoring borrower behaviour has never been more critical. With the Reserve Bank of India reporting a moderation in retail credit growth to 16.6% in June 2024—down from 21.3% the previous year—banks and NBFCs are placing greater emphasis on early risk detection and delinquency tracking to protect […]
Why Lenders Must Review Circular Transactions Closely Before Making Lending Decisions
The lending industry has grown immensely in the last few years. According to estimates, the global lending market grew from $ 7887 billion in 2022 to $ 8682 billion in 2023. By 2027, the global lending market size is projected to grow to $ 12176 billion. In the realm of business loans, a variety of […]
Early Warning System in Banks: A Guide to its Role in Preventing Failures
The global digital lending market, which stood at $12.6 billion in 2022, is projected to reach $71.8 billion by 2032, growing at a CAGR of 19.4% from 2023 to 2032, as per Allied Market Research. Globally, the COVID-19 pandemic disrupted traditional banking channels due to frequent lockdowns and the need to practise social distancing. This […]
Understanding DPD in Finance: Unveiling Early Risk Signals for Proactive Mitigation
In today’s dynamic financial world, risk management is critical to ensuring the stability and sustainability of financial institutions. One critical part of risk management is the early detection of prospective credit defaults, which can have far-reaching consequences for an institution’s financial health. To accomplish this, financial experts use a variety of instruments and indicators, one […]