Innovative Lending and Risk Approach: How ScoreMe Leads the Way
India today has the third largest number of fintech’s globally after China and the US and the highest adoption rate at 87% as compared to a global average of 64%. There are net 700m users accessing the internet via mobile in India –estimated to reach 1.5 billion by 2040. Digital transactions will touch 72% by 2025 as the percentage of total transactions and paper-based transactions will be down to only 28%. A significant component of the fintech industry is digital lending – As per an Experian report, India’s digital lending market was worth USD 270 billion in 2022 and is expected to reach USD 1.3 Tn presenting a 5x growth - and Scoreme Solutions Private Limited is proud to be playing a central role ushering in this phenomenal change in India. Scoreme is a new-age innovative fintech company in the area of credit analytics and digital lending. The company works with more than 125 financial institutions including public sector banks, private banks, cooperative banks, NBFCs and fintech lenders offering solutions for borrower on-boarding, credit underwriting and platforms for end-to-end digital lending across MSME, Retail and Agri Lending. The benefits of solutions provided by Scoreme include straight-through processing via digital lending, in-principle loan approval in under 30 minutes and credit analytics-data aggregation across multiple bank formats – leading to improved financial inclusion in India.
Scoreme started in the year 2017 – and recognized the existing credit gap in India- especially the gap in credit access in the MSME segment and what is known as “new to credit” customers. As per reports, out of the net 70 lac crore exposure to MSMEs, only 16 lac crores are via formal credit. This is a sector that contributes 30% to GDP, 45% to industry output and 40% to our exports and generates 90% of jobs in India. Yet the average loan ticket size to MSME still remains only around 4 lacs per borrower. India’s credit-to-GDP ratio is only 55% vs 160% for China and 135% for emerging economies. There are several supply-side constraints on access to credit – high transaction costs, low ticket size, lack of product innovation, limited underwriting capability, and process requirements - therefore, to enable better reach to MSMEs and to provide a cost-effective way for access to credit, digital lending is the way forward. Recognizing this need, Scoreme initially built APIs for bank statement analysis – to help enable cash flow-based lending. With the emergence of GST, ITR, Financial Statements and the India Stack, Scoreme incorporated offerings around KYC checks for borrower on-boarding, and an integrated report covering aspects of GST, ITR, financial statements and bank statements into one report for banks – providing a holistic view of the borrower. After having built in-house solutions for automating the borrower on-boarding and credit underwriting for banks, Scoreme has now built end-to-end digital lending platforms. These platforms are used for Retail, Agri and MSME Lending – starting with borrower on-boarding to in-principle loan approval in under 30 minutes. For example, these solutions are being used at various banks and NBFCs in helping automate journeys across MUDRA Loans – including Nari Shakti and GST Loan Journeys – helping enable credit access to MSME entrepreneurs – the backbone of India.
The company is seeking future steps toward building innovative offerings. Commenting on the journey, CEO Ayush Jindal said, “We have built an impressive array of solutions across borrower KYC, credit underwriting and digital platforms – we now want to innovate via integrations with account aggregators and build solutions for co-lending- and deepen our exciting digital journeys for Agri farmers and MSME entrepreneurs”. The company's impact is underscored by its marquee client base. Commenting on the growth of its client base, Director Mr. Shashank Sharma said “With several collaborations with notable institutions such as Union Bank of India, UCO Bank, and Punjab National Bank amongst others, Scoreme has served as a partner in their digital lending journey. Scoreme will continue to innovate and provide best-in-class products to our financial services customers.” Not only to customers, Scoreme also recognizes it is part of a bigger ecosystem within the financial services industry. Stating this aim, Mr. Praveen Khanna VP Alliances mentioned “ScoreMe has taken several proactive steps to raise awareness in the industry through insightful webinars and impactful physical events, fostering dynamic discussions on cutting-edge technological advancements. Its webinars delve deep into the core of The Now and the Next in the fintech space, presenting virtual sessions that equip participants with fresh perspectives.”
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Scoreme remains customer-focused as it continues to build the entire spectrum of technological advancements in finance, encompassing everything from the transformative influence of artificial intelligence (AI) to the latest strides in digital lending and beyond.
Scoreme has received widespread recognition for its achievements and innovative approach in the fields of finance and technology. It has been prominently featured in respected news outlets like Asian News International (ANI), Lokmat Media Pvt. Ltd, Web India, ThePrint, LatestLY, and more. These media acknowledgments not only affirm Scoreme's status as a trailblazer but also underscore its impact on the fintech landscape.
As Scoreme continues to pioneer innovative solutions, its presence in these respected publications reinforces its commitment to shaping the future of finance in India and beyond.