Facilitate the mortgage loan process
Indiabulls has enabled 24/7 online loan application processing across various platforms, allowing customers to take out loans anytime, anywhere. It is the first of its kind in today’s financial market, according to Nafees Ahmed, CIO, Indiabulls in conversation with Anupama Mehra from Elets News Network (ENN).
Indiabulls is known as the primary “instigator of change”. Give us an overview of your products and services?
We started our digital journey in 2016 with our online home loan product, which was one of a kind and no one has launched it yet in the Indian market today. A year and a half ago, we launched our personal loan mobile app called Dhani. Before the Supreme Court order, we were allowed to use e-KYC and electronic signature using the Aadhar facility. Thus, the client was able to obtain a personal loan at the end of the process in real time.
It was without any physical contact with the client. It was a three-minute trip where the loan amount was transferred to the client’s account as soon as they completed their loan application on their smartphone.
I’ve seen people take out a loan at 2 a.m., weekends, holidays, we’ve made it very convenient for clients to get loans as and when they need it. We mainly focused on digital platforms like social media etc. to promote our Dhani app instead of print or electronic media. We have realized that social media platforms are the most effective, so all of our marketing campaigns are based on digital platforms as today’s customer spends most of their time on these platforms.
When your customers are on the digital platform and you aren’t interacting with them in a physical world, you need all the data you need to disburse the loan digitally. Using this data, you need to understand the customer’s behavior, their creditworthiness, the loan amount you can give the customer, at what rate and for what duration, and the customer’s intention to repay the loan. You should also make sure, by analyzing this data, that it is not fraudulent and that once you disburse the loan to that customer, you have a good chance of getting the money back.
For this we need to collect the data from as many sources as possible, we get the client’s financial data directly from the sources. For example, we get the customer’s bank statement straight from the bank, so earlier in the physical world what was happening was the customer was giving the hard copy of the bank statement and there was some risk of fraud. So we had to hire our fraud control department or external agencies to verify the authenticity of the data, whereas now we get the ITR data, bank data and credit bureau score. All of this financial data straight from the sources.
What challenges have you encountered on your digital journey so far?
Previously our systems / applications were used by our employees only to process the loan request as all information was submitted by clients in physical documents and we used to enter the data into the system. Now in the digital world, where all stakeholders, whether my clients, employees, third party agencies, partners, are directly connected to my systems, to retrieve or submit data. Thus, security becomes a major concern as cybersecurity risks multiply. We have a dedicated information and security team, to make sure we are protected against cybersecurity threats. We are ISO 27001 certified, which means that we have implemented best practices and that we use cutting edge technologies in the field of information security to secure our systems.
Since our systems are now open to the world, we are extremely careful about security.
Three technologies that you think are essential for any financial company?
Artificial intelligence (AI), analytics and robotic process automation (RPA) are the three main technologies.
Previously, for an insurer, it took hours to compile the data and analyze it, to decide the creditworthiness of the client. Now it’s completely automatic.
Now we have implemented the AI to take out the loan so that all this data is sent to this engine and it generates the offer without any manual intervention. It improved the loan disbursement time from a few days to three minutes for a personal loan.
If you don’t connect with your customer in the physical world and make your decision based on the data you’ve collected, there’s nothing you can do without the AI and analytics provided. Speaking of RPA, we didn’t have that bandwidth earlier but this year we’re working on it.
There are certain use cases, which we have identified in our system, where we can implement RPA to improve the efficiency of our employees. For example, we process a hundred thousand requests a day, there are still teams like operations, credit, and collections where you can’t do everything 100% digitally and manual processing is involved in some cases. So now we need to implement RPA to get efficiency from these people, otherwise they will become the bottleneck of the system or the cost of running these departments will become very high. As we plan to increase the number of our activities, we need to ensure that we achieve the highest efficiency by implementing technologies such as RPA.
As all of our processes are digitally driven and interactions between different stakeholders take place digitally, we generate huge amounts of data including unstructured data related to customers in the process. We are convinced that in today’s digital world, data is the most critical factor for the success / growth of your business. Data analysis is the main function of our company because all decisions, such as refinement of existing products, development of new products, improvement of processes, etc. are data driven. Traditional analytics tools are good for structured data, but to monetize unstructured data collected from social media and other alternative sources, we need to implement solutions around big data in the next phase.
the First Minister at spear digital India during his last mandate. What are your expectations from Modi 2.0?
Digital india The Solution Stack was at the root of all innovations made over the past 4-5 years, and we have been the market disruptors using these initiatives in innovative ways, launched by the Government of India. Electronic signature installation, e-KYC installation, electronic mandate, digital payments, etc. are all very important to us and to a good customer experience. So I expect the government to take these initiatives more aggressively this time around to create a true digital INDIA for inclusive growth of all sections of society.
What are your plans for the rest of 2019?
We enter the life insurance business as well as general. Again, our goal is to develop complete digital platforms for our customers, which should give them one of the best experiences to interact with. a culture of innovation in the organization to take it to the next level. We know that we are in competition with the financial technology companies and that adopting the latest technologies is essential, not only for your growth, but even for your survival.