Collections Dossier: September 2024

Banking Sector Roundup - Q1FY25: BCG Report

The BCG India Banking Sector Report for Q1-FY25 delivers critical insights into the nation's banking landscape, highlighting key performance indicators, advances, deposits, and non-performing assets. Dive into this essential report to gain a deeper understanding of the macroeconomic trends shaping the sector, evaluate banks' health and risk management strategies, and explore the growth trajectory of digital banking in India. Whether you're tracking PSU bank valuations or looking ahead to future outlooks, this report is a must-read for anyone invested in India's financial future.

Debt Collection Industry Trends and Insights 2024

The debt collection industry is undergoing significant transformation due to the growing influence of artificial intelligence (AI), digital methods, and regulatory changes. AI and automation are viewed as potential avenues for future growth, although many organizations find it challenging to comprehend and implement. To ensure successful AI adoption, organizations must develop strategic roadmaps that prioritize cautious implementation.

To achieve success, organizations should adopt a balanced strategy that integrates technology with personal interaction and adheres to robust regulatory compliance measures. For further insights, please refer to the blog by Bridgeforce, which provides perspectives from United States debt collectors. Read this blog that elucidates the impact of AI, digital methods, and regulatory shifts. Additionally, it explores the interplay between technology and human interaction and offers effective strategies for reducing delinquencies and charge-offs.

Fintechs drive financial inclusion in India with Rs 2.76 lakh crore in small loans: Experian report

Fintech companies in India are transforming the lending landscape, disbursing Rs 2.76 lakh crore in small loans, according to an Experian India report. They are increasingly serving underserved populations, including New-to-Credit and sub-prime borrowers, with loans under ₹50,000, driving significant growth in personal and business loans. Fintechs hold a 52% market share in personal loans, with notable growth in rural and semi-urban areas.

The report emphasizes the need for stronger risk management and advanced data analytics while highlighting the role of technological innovation and regulatory support. Looking ahead, the report predicts that fintech companies have the potential to double their customer base to 200 million within the next three years, provided they continue to innovate and tackle existing challenges. It also advises fintechs to take cues from the success of Non-Banking Financial Companies (NBFCs), particularly in the area of secured lending. Read more

Mediation vs. Arbitration in the Banking and Financial Services Sector: Which is Right for You?

In the banking and financial services sector, disputes often arise over issues like loan repayment, investment advice, and service fees. Two primary methods for resolving such disputes are mediation and arbitration. While mediation is a voluntary, collaborative process where a neutral mediator helps both parties reach a mutually agreed solution, arbitration is a more formal process, involving a neutral arbitrator making a binding decision, often preferred for complex cases.

Read this article in TechGraph, where Mayank Khera , Co-founder and COO of Credgenics, discusses the benefits of two conflict resolution methods and explains how to evaluate the nature of the conflict and identify the desired outcomes in order to select the most suitable resolution approach.

How ULI can be a game changer for MSME and Agriculture borrowers?

The Reserve Bank of India (RBI) is set to revolutionize the credit landscape with the introduction of the Unified Lending Interface (ULI), a digital platform that could transform credit accessibility just like UPI transformed digital payments.

ULI’s comprehensive credit assessments and faster loan approvals will especially benefit MSMEs and the agricultural sector, ensuring competitive interest rates, tailored financial products, and timely investments in farming inputs. This initiative will help stabilize output, boost productivity, and support business growth and innovation.

As highlighted by Credgenics Co-founder and CEO, Rishabh Goel , in a recent ETBFSI story, ULI has the potential to be a game-changer for Micro, Small, and Medium Enterprises (MSMEs) and agriculture borrowers. By streamlining logistics and supply chain processes, ULI will offer real-time data integration, reducing costs and improving efficiency across the board.

📌 Check out the full story here to understand how ULI can make a difference:

Founder10X - 100+ Banking Clients, Managing $60 Billion Loan Book - Rishabh Goel, Co-founder and CEO, Credgenics

Tune in to the latest episode of the VC10X podcast featuring Rishabh Goel , Co-founder & CEO of Credgenics, in conversation with Prashant Choubey.

In this episode, Rishabh shares the remarkable growth journey of Credgenics—from an idea that sparked at IIT to becoming the leading player in debt collections and resolutions. Today, Credgenics collaborates with over 100 banks, NBFCs, and fintechs, touching a loan book exceeding $60 billion.

Rishabh discusses the innovative and industry-first strategies driving Credgenics and how the advanced technology solutions are helping lenders reimagine their approach to debt collections. He also talks about the challenges in debt recovery, the pivotal role of automation and data analytics in this field, and how Credgenics is setting new benchmarks for efficiency and effectiveness in financial recoveries.

Automated Debt Collection: The Future Of Legaltech Is Here

Traditionally, debt recovery has been a long and stressful process, requiring extensive paperwork and prolonged legal procedures. However, advancements such as automated debt collection systems and Online Dispute Resolution (ODR) platforms are transforming this landscape, making the process more efficient, cost-effective, and less adversarial for both creditors and debtors.

To understand how Legaltech is leading to a more seamless and humane debt recovery process, read this insightful article on ABP Live by Mayank Khera , Co-Founder and COO of Credgenics.

Additionally he talks about its key benefits that include streamlined debt recovery through automation, reducing time and manual effort, lower operational costs and fewer penalties for borrowers, a more respectful and less intrusive experience, reducing stress for all parties involved and accessible, transparent, and efficient dispute resolution without the need for court appearances.

Expanding horizons: The transformative potential of cross-border UPI transactions

India's revolutionary Unified Payments Interface (UPI) is set to disrupt the global remittances market. From seamless integration with payment systems worldwide to facilitating cross-border purchases, UPI is reshaping how we transact globally.

Explore the transformative potential of UPI for cross-border payments in our latest blog ’Expanding horizons: The transformative potential of cross-border UPI transactions', and understand how it is expediting international transactions, reducing costs for cross-border payments, and empowering individuals and businesses worldwide.

Transforming Financial Dispute Resolution Landscape: Embracing Digital Solutions

At the recent Industry Roundtable on ODR & Collections, titled "Transforming Financial Dispute Resolution Landscape: Embracing Digital Solutions," hosted by Credgenics in collaboration with Dun & Bradstreet India, Mayank Khera , Co-founder and COO of Credgenics, delivered a session that outlined a transformative vision for financial dispute resolution.

Watch this video where he emphasizes the revolutionary impact of Online Dispute Resolution (ODR) on the legal ecosystem, highlighting its potential to enhance efficiency, accessibility, and cost-effectiveness and how Credgenics is spearheading this transformation by leveraging technology to manage millions of accounts and communications.

Empowering Asset Reconstruction Companies with Digital Capabilities for Debt Resolution

Asset Reconstruction Companies (ARCs) play a vital role in tackling non-performing assets and reviving the financial health of India's banking sector. But their job is no easy feat.

In this blog ‘Empowering Asset Reconstruction Companies with Digital Capabilities for Debt Resolution’, discover how digital transformation is empowering India’s asset reconstruction companies with the digital tools to streamline operations, enhance transparency, and drive more efficient debt resolution.

Explore further to discover the impact of AI, automation, and data analytics on the ARC landscape, uncover the advantages of digital empowerment, ranging from cost optimization to enhanced stakeholder trust, and learn about Credgenics' use of technological solutions to empower ARCs in the retail and SME sectors.

Simplify Collections Communication with Credgenics Template Management

The inability to create an effective personalized communications strategy in collections poses challenges such as process bottlenecks, poor productivity, and high operational cost.

Credgenics Template Management for digital collections empowers teams across lending companies to standardize, scale, and, execute successful communication templates that prioritize collections. This also saves a lot of time and energy spent in creating messages and templates from scratch every time.

With template management, lenders can:

👉 Effortlessly access, replicate, archive, edit, and generate new templates across all existing digital communication channels.

👉 Consolidate all the templates within a centralized repository.

👉 Filter templates based on language, author, creation month, and other mandatory variables.

👉 Streamline the processes for digital collections.

Discover more about this feature.

How Credgenics Litigation Management Solution (LMS) Transforms Legal Processes

As India's financial services sector rapidly expands, the intricacies of debt repayment and resolution grow increasingly complex. Traditional legal case and matter management methods face issues such as high case backlogs, overburdened courts, and substantial costs. However, the emergence of legal technology solutions presents a promising solution to these challenges.

The advent of innovative technology solutions like the Credgenics Litigation Management Solution (LMS) offers a promising path forward. Read this blog to understand how Credgenics LMS is transforming legal processes, making them more efficient, transparent, and effective.

Key Insights include the necessity of LMS in today's legal environment, challenges in traditional litigation management, boosting efficiency and transparency in legal workflows and overcoming challenges with advanced LMS features.

Maximize resolutions via omni-channel digital collections strategy

Faced with the need to adapt to the rapidly changing digital landscape, a leading India-based private sector bank was looking to adopt a comprehensive digital transformation across multiple facets of its businesses.  Their goal was to modernize their debt collection processes by incorporating a robust digital and analytical framework, in order to make its operations future-ready.

Read this case study to understand how Credgenics executed a comprehensive digital collections strategy characterized by integration, scalability, and a forward-looking approach. Within this framework, they deployed their 3C model - Connect, Contact, and Collect - to deliver a perfect mix of omnichannel communication, risk and language-based segmentation, and automated workflows for enhanced borrower engagement.

Shaping the future of debt collections: How is digitization reshaping field debt collections?

Managing field collections for debt recovery can be cumbersome and costly due to manual operations, making it challenging to track teams, assess visit outcomes, and improve processes. Credgenics' CG Collect, a field debt collections mobile app, tackles these challenges by digitizing operations. It streamlines contact strategies, offers scalability, optimizes costs, and enhances agent productivity through features like geo-tagging, route optimization, digital payments, in-app calling, and offline updates.

This digital transformation has significantly reduced collection costs, increased agent productivity, and boosted the number of daily visits by field agents.

Watch this video where Hendra Rahman , Country Head at Credgenics, Indonesia, discusses the transformative impact of CG Collect on digitizing field debt collections and how it is benefitting leading banks and finance companies in Indonesia.

Credgenics surpasses the milestone of 100,000+ followers on LinkedIn

Credgenics surpassed the milestone of 100,000+ community members on LinkedIn last week. This is much more than a number—it is a commitment to shape the future of the vibrant financial services ecosystem together and a reflection of the trust in us. Every engagement has helped us create a dynamic space where ideas flourish and connections thrive. The support drives us to keep setting new boundaries and facilitates an engagement that resonates all around.

Subscribe to Credgenics' monthly Newsletter - Collections Dossier

Visit us at Credgenics LinkedIn page.