Collections Dossier: April 2024

Evolution of financial markets in India: Charting the Future - Keynote Address by Shri Shaktikanta Das, Governor, Reserve Bank of India, at the FIMMDA-PDAI Annual Conference

Shaktikanta Das, Governor of the Reserve Bank of India, delivered a keynote address at the FIMMDA-PDAI Annual Conference in Barcelona, highlighting the evolution of India's financial markets and the RBI's role.

He addressed key areas like non-banking financial company oversight, government securities regulations, financial market regulations, payment systems, inflation targeting, and housing finance regulation.

He also discussed the collaborative efforts with stakeholders like FIMMDA and PDAI in developing robust financial markets, especially after the Global Financial Crisis of 2008, the reforms of which aim to enhance market efficiency, bridge onshore-offshore market gaps, broaden market participation, foster innovation, ensure market integrity, and promote fair market conduct.

He outlined major reforms in government securities markets, corporate bond markets, money markets, and OTC derivative markets, emphasizing initiatives to improve liquidity, transparency, and technological integration.

Read his speech on the evolution of financial markets in India and the need for continued reforms and active participation from financial institutions and market players to sustain trust, stability, and innovation in India's financial markets, positioning the country competitively on the global stage.

Scaling genAI in banking: Choosing the best operating model

Generative AI (gen AI) is transforming the banking sector by improving customer interactions, preventing fraud, and optimizing tasks such as code development and regulatory report summarization. According to McKinsey Global Institute, gen AI has the potential to increase the banking sector's annual value by $200-340 billion through heightened productivity.

Read this report by McKinsey, which emphasizes the critical role of a well-designed operating model for gen AI success, highlighting the current preference for centralization to enhance efficiency and manage risks effectively.

It also advises financial institutions to carefully select their gen AI operating model, considering aspects like talent distribution, risk mitigation, strategic decision-making, and the need for flexibility and alignment with organizational structure to achieve optimal scaling and impact.

Collection strategy should be based on borrower's behaviour, says Rishabh Goel of Credgenics

The pivotal nexus between enhancing debt recovery and upholding borrower experience is an imperative linchpin for loan collections enterprises in India’s credit-driven market. Despite the burgeoning credit landscape and the proliferation of startups, the arduous task of debt collections persists, resulting in a surge of non-performing assets within financial institutions.

In a conversation with Amol Dethe, Editor of ETBFSI FinTech Diary, Rishabh Goel, Co-founder & CEO, Credgenics, sheds light on the prevailing scenario where traditional collection methods still dominate, underscoring the necessity for a paradigm shift towards strategies aligned with borrower behavior. He elaborates on how Credgenics sought to integrate itself into India’s lending ecosystem by optimizing collection strategies and advocating for the strategic integration of digital nudges customized to individual preferences, along with an empathetic approach to debt recovery.

Furthermore, he unveils Credgenics' strategic foray into the South Asian market, poised to capitalize on emerging opportunities and spearhead innovative solutions in the realm of debt collections and resolution. Watch the full video.

Startup Mahakumbh 2024 - Looking Ahead: The Opportunity in Fintech in 2030

Recently, Credgenics' Co-founder and CEO, Rishabh Goel , had the privilege to speak at Startup Mahakumbh in New Delhi, where he delved into the immense opportunities awaiting us in 2030, alongside esteemed panelists Rajat Gandhi (Faircent), Dinesh Pai (Zerodha), B.G. Mahesh (Sahamati), and Raghunandan G (Zolve Innovations), who envisioned the future of fintech and its pivotal role in shaping India's global leadership in Artificial Intelligence (AI), as highlighted by Hon'ble Prime Minister Narendra Modi.

In the session, 'Looking Ahead: The Opportunity in Fintech in 2030', Rishabh discussed the integration of the latest technologies like Artificial Intelligence (AI), Natural Language Processing (NLP), and Robotic Process Automation (RPA) into the banking and financial services landscape, shedding light on the transformative power it holds to enhance efficiency, drive collections, and elevate customer experiences.

Dive deeper into the potential of technology in banking and Fintech. Watch this video to learn more about Rishabh's insights and reflections on banking and financial services.

The Calmer Catchpole

Debt collections play a crucial role in lending, directly affecting a lender's revenue, profitability, and ability to lend further. However, traditional methods often face challenges.

To address this need, Credgenics uses advanced technology to streamline debt collections processes and cater to diverse lender requirements. Entrepreneur India's Fintech Special Issue features Credgenics as "The Calmer Catchpole," highlighting the company's focus on growth and operational profitability.

In the article, Rishabh Goel, Co-founder and CEO, Credgenics, emphasized the commitment to success and growth, citing operational profitability achieved last year and aims to sustain its growth momentum by expanding its customer base, introducing new solutions, enhancing value for existing customers, and venturing into new markets.

Additionally, he applauds the proactive role of regulators, noting that it not only reflects a positive industry outlook but also fosters a healthier ecosystem within the unsecured lending sector. Read more.

Struggling to repay your loans? Understand borrower's rights

Digitalization has streamlined the process of obtaining credit, making it more convenient and rapid for borrowers to access financial resources. However, this ease of access has also resulted in a rise in loan defaults, a worrying trend for lenders. This situation can place borrowers in stressful circumstances, often leading to challenges in repaying their loans.

Empowering individuals with knowledge about their rights not only enables them to take proactive steps but also facilitates effective communication with lenders, exploration of available alternatives, and seeking assistance when needed, thus mitigating the impact of loan default.

Read this article in LiveMint by Sangeeta Ojha, where Co-founder and COO of Credgenics, Mayank Khera highlights borrowers' legal rights amidst loan defaults and shares knowledge that will empower borrowers to navigate loan difficulties while ensuring fair treatment throughout the debt recovery process.

Credgenics wins the LendTech X Factor Awards 2024 for Automated Collections Excellence

Credgenics is thrilled to win the 'LendTech X Factor Award 2024' for 'Automated Collections Excellence'. This award recognizes the outstanding innovators, trailblazers, and pioneers in the ever-evolving landscape of digital lending and payments.

The X-Factor Awards signify more than just accomplishments; they symbolize the unique, indescribable quality that distinguishes certain individuals and organizations—the X-Factor.

Credgenics' industry-first solutions and innovative products have consistently contributed to setting new standards for excellence in the dynamic and rapidly evolving debt collections sector. The company continues to deliver advanced tech solutions that reinforce its position as a leader in the financial services industry.

BPR Kredit Mandiri Indonesia partners with Credgenics

Credgenics is thrilled to share that BPR Kredit Mandiri Indonesia, a leading rural bank in Indonesia, has partnered with Credgenics to digitize and automate their debt collections processes. The collaboration between BPR Kredit Mandiri Indonesia and Credgenics signifies a commitment to embracing rapid digital transformation.

By leveraging innovative technologies and data-driven insights, Credgenics is revolutionizing loan collections and unlocking higher efficiencies in processes. Credgenics’ SaaS platform enhances borrower connectivity, boosts effectiveness and provides higher visibility for banks in debt recovery efforts.

Watch the video to discover how the Credgenics and BPR Kredit Mandiri collaboration is reshaping the future of debt recovery in Indonesia.

Credgenics emerges as a leader in financial dispute resolution with strong ODR capabilities

Credgenics emerges as a frontrunner in financial dispute resolution, showcasing remarkable Online Dispute Resolution (ODR) capabilities to simplify debt repayment disputes digitally.

Leveraging the advanced technology and strong legal expertise of its 850 case managers, 2,200 counselors, and 3,000 neutrals who are qualified and independent BFSI domain-focused specialists, Credgenics provides services to leading banks, fintech lenders, NBFCs, and Asset Reconstruction Companies (ARCs) across more than 16,000 pin codes and 10 vernacular languages pan India.

With $70 billion in repayments managed, 2.5 million disputes handled monthly, and over 1 million successful arbitrations, Credgenics' impressive track record speaks volumes about its expertise in the ODR space for the BFSI segment and remains at the forefront of Online Dispute Resolution in India, committed to fair and efficient dispute resolution in the digital age. Read more.

Prioritizing data security to meet digital lending challenges

While technology has greatly facilitated access to financial services for customers, the importance of data security cannot be underestimated. As digital innovation streamlines lending processes, safeguarding sensitive information has become paramount. To address digital lending challenges and prioritize data security, lenders must implement strategies that emphasize building trust, promoting growth, and, most importantly, safeguarding borrowers' information.

Read this blog 'Prioritizing data security to meet digital lending challenges' to: comprehend the factors that elevate data security to a critical goal for banks and lending institutions, understand how data security will continue to be a crucial concern for borrowers seeking credit access, and learn about the technology that can help combat the challenges associated with data security.

3 Debt Collections Metric every lender must track

Debt collections platforms play a vital role in facilitating the recovery of outstanding debts and helping creditors regain financial stability. A robust set of metrics and Key Performance Indicators (KPIs) is useful to assess the effectiveness and efficiency of collection teams and platforms.

For lending institutions, it is imperative to understand the importance of measuring success in debt collections, explore the key metrics, and KPIs used to evaluate debt collections platforms, and know how to leverage these insights to drive improved performance and outcomes.

Improving the recovery rate through proactive strategies, monitoring average days delinquent, and tracking collection costs are vital for optimizing operations and financial resources, enhancing debt collection processes, and maintaining financial health. To know more, watch this video.

Boosting debt recovery with digital and automated engagements

A leading Multi-Finance Company (MFC) headquartered in Indonesia, specializing in 2-wheeler loans, partnered with Credgenics to streamline, automate, and digitize its loan collections processes. Leveraging the Credgenics platform, the lender gained access to a self-service tool for automating allocation and implementing digital treatment logic. Additionally, it harnessed rich data insights to optimize its communication strategy, determining the most effective timing, frequency, channel, and message tone for outreach. Furthermore, Credgenics' CG Collect app provided highly efficient agent journeys, incorporating geo-location tracking and in-app calling features for field collectors.

The adoption of Credgenics' debt collections technology platform empowered the MFC to achieve remarkable results, including a 25% increase in agent productivity through automatic allocation, 20% reduction in communication costs with omni-channel mode, 20% decrease in field agent allocations and 5X increase in the average daily number of visits by field agents.

Discover more about this transformative partnership by downloading the case study today.

Introducing Smart Allocate on Credgenics Platform – Intelligent account allocation for optimized collections

Effective retail loan recovery relies on well-planned account allocation strategies that consider factors like collections team dynamics, account aging, methods of approach, and frequency of communication. While manual systems may suffice for a lower volume of recovery accounts, they are inefficient and not scalable as collection efforts expand.

Credgenics Smart Allocate, an intelligent allocation solution, empowers lenders to anticipate the demand for contact frequency and proactively address bottlenecks in collections while accurately assessing team performance in real-time. By automating the allocation of loan accounts, lenders can save up to 70–80% of their operations time.

Key features of Credgenics Smart Allocate include addressing capacity constraints in allocation, enhancing collections agent performance through load balancing, automating allocation processes, and utilizing configurable templates.

Read this blog ‘Introducing Smart Allocate on Credgenics Platform – Intelligent account allocation for optimized collections', to learn more about this solution.

Elemental to a successful Collections Strategy

Credgenics is leading the change in the ever-evolving debt collections landscape and significantly impacting the lending ecosystem through its integrated technology platform. The platform allows lenders to streamline and manage their loan recovery workflow, utilizing proprietary tech tools and a data-based approach.

This establishes a streamlined communication channel between lenders and borrowers, enhances loan recovery rates, and decreases collection costs by implementing hyper-personalization and collections analytics —elements fundamental to a successful collections strategy.

To explore more about our platform, visit: www.credgenics.com

Customer Speaks

Credgenics continues to power the modernization of debt collections with its market-leading technology platform and industry-first data driven approach.

Shweta Arora, Manager - Short Ticket Loans, Credenc.com, a fintech platform dedicated to financing meritorious students’ education expenses, shares her views on the longstanding engagement with Credgenics. She appreciates the optimization in loan recovery processes, the boost in success rates and the trust build-up with Credgenics.

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