Collections Dossier: November 2024
Credgenics
A FinTech reimagining Loan Collections and Debt Resolutions through its market leading technology platform
State of the Economy - RBI
In H1 2024, the global economy showed resilience with moderating inflation supporting household spending, while India maintained a strong growth outlook, driven by robust domestic demand. Though some indicators like GST collections and exports slowed in Q2 due to heavy rains, consumption was poised for a festival season boost, especially in smaller towns where credit-driven spending on electronics and two-wheelers is on the rise.
India’s fintech sector is thriving, with a fivefold increase in startups since 2021, enabling significant growth in digital lending and consumer credit, particularly in personal loans sourced through fintech platforms. The U.S. rate cut has eased pressure on emerging markets, and digital ecosystems in finance are advancing globally. While inflation spiked to 5.5% in September due to rising food prices, the expected winter easing of food costs could help stabilize it. Read more.
The next era of private credit
A new private credit ecosystem is emerging, driven by asset managers, banks, and insurers collaborating to originate, syndicate, and distribute assets at scale. Private credit has grown rapidly, now totaling nearly $2 trillion by 2023, with the potential to reach $30 trillion in the U.S. alone. As banks retrench, private credit expands into new areas, such as asset-backed finance and infrastructure. Insurers and retail capital pools are also diversifying the sources of capital. This shift creates opportunities for nonbank lenders while posing challenges to traditional banks, which must adapt by partnering or restructuring their business models. Scale and technology are key differentiators in this evolving landscape. Careful risk management remains crucial as the market grows and regulatory frameworks evolve.
Read the insights outlined in this McKinsey article, along with the foundational tenets of credit investing, including clear investor communication, robust monitoring and workout capabilities, and underwriting discipline can help players succeed in this new private credit ecosystem.
India’s economic outlook - October 2024
India’s economy continues to demonstrate resilience, with GDP growing by 6.7% year-over-year in the first quarter of fiscal 2024–25, despite slowing from previous quarters. Growth is fueled by rural consumption, eased inflation, improved agricultural output, and robust private investments.
Deloitte projects annual GDP growth between 7–7.2% for FY 2024–25 and 6.5–6.8% for the next fiscal year, though global challenges may impact exports. The labor market is showing green shoots, with a rise in salaried jobs, female workforce participation, and a rebound in manufacturing and services. However, challenges like high informal employment and reliance on low-skill jobs persist.
India’s focus on manufacturing, clean energy, and skill development, supported by its youthful population, is expected to create formal, high-quality jobs, advancing its path to becoming a $5 trillion economy.
For a comprehensive analysis of India’s economy, refer to the Deloitte report that delves into economic indicators and future growth projections.
Year-end holidays: Avoid expensive loans, plan a budget-friendly trip
As the year comes to a close, many are planning getaways to unwind and recharge. But planning a trip doesn’t have to mean taking on financial stress. In a recent Business Standard article, Rishabh Goel , Co-founder and CEO, Credgenics, shares his advice on how to travel smartly without falling into a debt trap.
Key takeaways include comparing loan rates to get the best deal, leveraging your credit score wherever possible, reviewing loan terms carefully to avoid hidden fees or penalties—small details can save big costs, and keeping your credit usage balanced by setting realistic budgets for essentials like travel, accommodation, and activities. Read more.
Diwali celebrations: How to avoid the debt hangover post-festive season spending
Along with the festive season celebrations, it is essential to assess our financial well-being when it comes to post-festivity expenses. In this article featured in Business Today, Rishabh Goel , Co-founder and CEO of Credgenics, shares insights and tips to effectively tackle the post-festive debt. Key takeaways include assessing your spending, prioritizing debt repayment, creating a budget, and planning for future expenses. Read more.
Good debt vs. bad debt in India: How to make smart borrowing decisions
Not all debt is created equal, and understanding its nuances can greatly influence your financial health. While reckless credit card usage can strain finances, education loans have the potential to unlock higher earning opportunities. Home and education loans are valuable assets for building wealth, and business loans can drive growth and foster long-term success. However, high-interest consumer debt requires careful consideration, as it can quickly spiral into financial instability.
The key to smart borrowing lies in ensuring total loan obligations remain under 40% of monthly income, safeguarding financial stability, and promoting sustainable money management. This blog offers a comprehensive guide to help readers harness the power of debt, turning it into a tool for financial growth rather than a burden.
Credgenics Analysis: Delinquency Trends from FY24 to FY25
When we look at the trends emerging from FY24 to FY25 delinquency data, it can be seen that the delinquency numbers in Q1 FY25 for 30+ DPD and 90+ DPD have reduced in comparison to Q1 FY24. This trend is seen across credit products such as Home loan, Auto loan, Two-wheeler loan, and Credit cards. The 30+DPD delinquency in Credit cards, LAP and Consumer durable loans and 90+ DPD in Credit cards has however marginally increased over the same period.
This pattern may be arising due to a mix of reasons:
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Credgenics wins the Collections Technology Solutions - Debt Management Award at Credit & Collections Summit 2024, Middle East - Oman
Credgenics is thrilled to have been honored for its excellence in Collections Technology Solutions - Debt Management at the Credit & Collections Summit 2024, Oman.
The awards celebrate innovation and leadership in collections and risk management, spotlighting organizations that have set new benchmarks in the industry and are lauded for their ability to master the complexities of collections while driving sustainable growth and stability in the financial sector.
This accolade underscores Credgenics’ forward-thinking, digital-first approach. Leveraging advanced AI/ML capabilities and a robust data-driven model, the company has redefined debt collection practices, delivering measurable results for banks and financial institutions. At its core, Credgenics remains committed to empowering its customers with transformative solutions that solve today’s challenges and build a foundation for long-term success in the fast-evolving financial landscape.
Recommended by LinkedIn
Credgenics - Finalist in the 'Best Technology Company for Fintech Solutions', IFTA Awards 2024
Credgenics is thrilled to be the finalist in the ‘Best Technology Company for Fintech Solutions’ category at the 9th Annual India FinTech Forum (IFTA) Awards 2024.
This recognition highlights the transformative impact of Credgenics’ AI / ML-powered platform along with its technology-driven solutions that are redefining the future of FinTech.
Credgenics remains committed to delivering exceptional value to its customers, driving their sustained success and growth in the rapidly evolving financial landscape.
Credgenics at the World Financial Innovation Series Indonesia (WFIS) 2024 - A resounding success
AI is presenting groundbreaking possibilities for innovation across banking and financial services, upending conventional processes and reshaping the industry with unprecedented advancements. At the forefront of this transformation is Credgenics, which is redefining debt collections with AI-powered precision.
The Credgenics team was at the World Financial Innovation Series Indonesia (WFIS) 2024 on November 12-13, at Raffles Jakarta, Booth E-14, where the platform showcased how it is helping lenders leverage AI’s potential to tackle debt collections with unmatched intelligence and efficiency for financial institutions across Indonesia.
Credgenics at L&T Finance RAiSE'24
The Credgenics team had an incredible experience at RAISE’24, a premier AI-focused conference hosted by L&T Finance. The event brought together AI practitioners and thought leaders to explore the real-world applications of AI, with a special focus on the BFSI sector.
Credgenics showcased how it is powering the AI edge in debt collections with its comprehensive and innovative solutions.
Credgenics' Annual Party - Magnum 2024
Credgenics Annual Party - Magnum 2024 was alive with pride, energy, and enthusiasm - the unmistakable feeling of being part of an extraordinary team. The occasion was a heartfelt ‘thank you’ to every Credgenian for their hard work, dedication, and drive to help Credgenics evolve and grow.
The evening saw the CG Golden Awards shining as the night’s centerpiece, honoring those who went above and beyond. As the music turned up, the dance floor became the place to be—a reminder that we’re all in this together.
In that grand venue, surrounded by friends and colleagues, every moment was a toast to hard work, victories, and unity. The night reminded us where we started and how far we’ve come. And as the celebrations wrapped up, one thing was certain—the best is yet to come.
Leveraging Analytics to Improve Debt Collections Performance
Data-driven insights can power remarkable improvements, from significantly higher recovery rates to faster collection timelines. Leading fintech companies have turned this vision into reality, revolutionizing debt recovery processes and setting new benchmarks for efficiency and precision.
Read this blog to unpack how data-driven approaches are revolutionizing debt collections which include smarter risk assessment, personalized collection strategies, better customer relationships, streamlined operations, and enhanced cash flow management.
Manage field collectors with CG collect
In the fast-paced world of loan collections and recovery, real-time visibility and efficient collector management is important.
The Geo-tagging feature on the CG Collect app transforms how managers monitor and manage field collectors, ensuring greater accountability and transparency, including live location tracking, real-time updates, proof of visit and complete visibility on loan recovery progress to prevent fraudulent activity during the entire collections cycle. Watch the video.
Boosting Collections in BNPL with a Personalized and Digital Model
A leading global e-commerce platform offering BNPL services in India partnered with Credgenics to enhance debt recovery and customer engagement through data-driven digital collections. Credgenics implemented ML-powered strategies, risk segmentation, and omnichannel communication to target borrowers effectively.
The proactive approach reduced bounce rates by 20%, improved resolution rates (87% in low-risk and 40% in high-risk cases), and resolved over 85% of cases within 5 days. Innovations like pre-due EMI reminders, voice bots, and automated journeys boosted operational efficiency, delivering significant cost savings and improved borrower experiences. Download the case study.
Credgenics Repossession Management
In today's dynamic financial landscape, lenders face critical challenges such as inefficient repossessions, high operational costs, poor asset tracking and visibility, and compliance headaches. These issues significantly impact the bottom line and operational efficiency. Credgenics' state-of-the-art Repossession Management Module is designed to address these challenges.
Our all-in-one platform transforms asset recovery by streamlining workflows from initiation to recovery, empowering field agents with real-time data collection, and providing a mobile app for efficient on-ground operations. Additionally, it offers smart stockyard management and ensures built-in legal compliance. Watch the video.
Customer Speaks
Credgenics, the market leader in AI-powered debt collections technology solutions, is enabling banks and other non-banking lenders to help them drive their strategic business goals and enhance collections efficiency.
Credgenics worked with Amazon to supercharge its collections operations with a digital-first and personalized engagement approach, perfectly aligning with Amazon’s unwavering commitment to customer experience.
Read what Gaurav Ajitsaria has to say about the impact of Credgenics’ innovative and outcome focused solutions.
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