India-based fintech FinBox has enabled a faster digital onboarding experience for digital lender Capital Now in addition to supercharging bank statement analysis. The partnership with FinBox 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.

It aims to establish a secure and reliable digital lending experience in accordance with the Reserve Bank of India’s (RBI) commitment to fostering fair and transparent practices. A safer, more informed approach on risky loans Risk assessment remains important to loan disbursement, especially as the RBI addresses unsecured personal loan surges. In response, the RBI has directed banks and non-bank financial companies (NBFCs) to bolster their capital reserves for risk weights.

The newly implemented regulations, effective immediately and mandatory by February 2024, emphasise stricter underwriting and risk-based monitoring. However, the process's time-consuming nature poses challenges and may lead to notable drop-offs on platforms. The rise of the unified payment transactions (UPI) for petty transactions has further complicated analysing 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. 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. Increasing the loan approval rate 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%. Fintech lending saw a 21% increase year-on-year in FY23, and is only projected to grow further, as per business-standard.com.

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. .