FinBox and Capital Now partners to speed up digital underwriting by 40%
FinBox’s bank statement analyser reduces onboarding TAT for digital lending by 25%.
Capital Now processes thousands of loan applications across credit products.
With FinBox’s advanced technology and wide network of supported banks, Capital Now has improved its platform success rate by 30%.
Gurugram and Bengaluru-based FinTech FinBox has partnered with Capital Now, a Hyderabad-based digital lender, to improve customer onboarding, in addition to supercharging bank statement analysis for risk assessment.
The partnership has enabled Capital Now to onboard its customers within seconds, reducing the overall turnaround time for digital loan disbursement by 25% over their incumbent solution.
Risk assessment remains crucial to loan disbursement, especially as the RBI addresses unsecured personal loan surges. In response, the RBI has directed banks and NBFCs to bolster their capital reserves for risk weights. These regulations are set to take immediate effect, urging mandatory compliance before the end of February this year. The regulations will inevitably drive a more stringent focus on underwriting practices and proactive risk-based monitoring. However, the traditional process poses a significant challenge due to its time-consuming nature, rendering platforms susceptible to notable drop-offs.
The rise of the unified payment transactions (UPI) for petty transactions has further complicated analyzing the larger database. FinBox’s advanced bank statement analyser, BankConnect, analyses with the highest levels of accuracy but also does so at unprecedented speed. This deeper insight into bank statements significantly strengthens the evaluation process for unsecured loans, mitigating risks and fostering more secure lending practices within the financial ecosystem.
“It has always been our priority at FinBox to ensure our products help our clients create real, tangible impact. BankConnect has been able to deliver desired results for Capital Now, but what makes this win sweeter for us is the sheer speed at which it has kept up with their burgeoning customer base,” said Rajat Deshpande, CEO, FinBox.
The software has been designed to collect, extract and analyse data with the objective of minimising onboarding time for customers, thereby improving their experience on the host app. FinBox’s APIs fetch bank statements fast and it processes bank statement data simultaneously as the user completes onboarding, and Capital Now uses these insights to enrich their own risk assessment measures. The speed of such analysis in the backdrop ensures that the customer is presented with their loan eligibility status instantly.
Capital Now serves a vast and diverse customer base. FinBox supports a comprehensive list of banks and statement formats, thus allowing the digital lender to analyse statements shared by any customer. As a result of FinBox’s quick TAT and extensive network of banks, Capital Now has also improved the success rate of its platform by 30%.
“In the fast-paced world of retail digital lending, Capital Now efficiently handles a multitude of loan applications, spanning various credit products. Our commitment is to streamline this process, ensuring each application receives the attention and precision it deserves. Which is why we need extremely reliable tech integration. BankConnect has been nothing short of a secret weapon for us – it has empowered us to carry out near-precise risk assessment, and at astounding speed,” said Dhaval Shah, Product Manager at Capital Now.
FinTech lending saw a 21% increase year-on-year in FY23, and is only projected to grow further. Naturally, the spate in non-payment of loans in the unsecured digital lending segment has alarmed key stakeholders in the sector. Partnerships between digital lenders and reliable technical service providers, however, can help check NPAs while also extending the access to financial services to large portions of the population with responsible and scalable underwriting.
About FinBox:
FinBox is a rapidly scaling fintech start-up based in Bangalore that provides embedded finance infrastructure and digital lending solutions to start-ups and enterprises across the globe. The FinBox suite works across alternate data scoring, embedded credit line, financial data integration, and analysis.
About Capital Now:
Capital Now is India’s trusted app-based digital lending platform catering to personal credit facilities. We leverage technology and big data analytics to deliver innovative credit products to salaried Individuals.
