As machines are increasingly getting interconnected with each other, there has been a great surge in the numbers of cyber-security risks that are now coming in the form of multi-layered attacks. Today, businesses are open not just to one single risk, but rather have to deal with a bouquet of risks that are infiltrating in various forms.
Clearly understanding the situation at hand, coming to the fore is Kalp Fintech that is based out of Pune, Maharashtra. The company’s early warning system has been aiding lenders to make this risk assessment process more accurate, less time-consuming and all encompassing, thereby enabling underwriter to make an informed decision.
In conversation with Rahul Joshi, CTO, Kalp Fintech
Credit risk has gone from being a brushed off part of doing business to a strategic sustainability measure. Why does Credit Risk Management occupy a special place in a business and how is your platform the best fit?
The intervention of new-age technologies has revolutionized the fintech space as fully digital mobile and web applications rapidly replace the obsolete, traditional, and mundane methods and tools that fail entirely to mitigate credit risks.
Understanding the gray are as and the needs of the fintech industry, Kalp’s
platform – Loanguard – has been perfectly serving the varied customer base by ensuring effective assessment of credit risk. This platform has been perfectly integrated with new-age technologies that make the process more centralized, managed, extensible, and, most importantly, unified with the existing business process. All the applicants are subjected to the same level of scrutiny. More importantly, it makes the credit risk process auditable with digital stamping that allows for a quick look at the application's status when it was first approved.
The platform helps in viewing the application through various lenses
Give a detailed account of Credit Risk Management platform and how is it different from similar solutions in the market?
We believe it’s not just about digitizing the RCU for better risk control, but rather, it is about having a digital-right RCU where digitization of data is done at the right time and at the right place and with right context that will blanket the business process as a whole.
Rather than starting with the technology application in finance, Kalp Fintech always intends to scrutinize every pain point before applying the required technology to deliver a complete solution. Moreover, from the viewpoint of a risk manager, a risk assessment should be more comprehensive. It is the loan application that is getting approved and not a specific document or identity. All these inceptions are deeply embedded in Kalp’s methodologies, hence empowering them to build such a game-changer platform. The platform helps in viewing the application through various lenses from identifying checks, authenticating source validation, to driving income analysis.
It puts together an assessment that maps all the attributes of the
application, evaluates a context, and categorizes it for severity, thus making it easy to determine eligibility. Furthermore, the platform enables the lender to get an early sign of which way the profile is leaning by using an ensemble of machine learning models. While, it helps with analytics in terms of trends and associations, and also makes the journey smoother for the lender’s end customer.
Moreover, our iKYC mobile app, no-photo clicks KYC validation, bank statement analysis, and as well as API based integration making the desirable goal easier to achieve for an organization. The specific method to use depends on the product, ticket size, location (in-person, online), and specific business criteria.
Provide us with an example of one of your successful implementations which has gained considerable benefit for that company.
Loanguard platform is being used by one of the largest NBFCs in the country for some of their products, wherein the platform is unified with their business process - whenever the application is filed; it kicks-off risk assessment on the platforms which then similarly feeds LOS with results. Further, based on the assessment details, the workflow is triggered within the lender’s system and can reject the file or send it for the next approval as well. This significantly reduces field verifications for the clients, thus helping in making better and effective decision-making, while considerably reducing operational cost as well as Turn Around Time (TAT).
Tell us about the future roadmap of the company.
Moving further, we are consistently enriching our platform with AI capabilities, which would help determine the anomalies that otherwise would have been difficult for a human. The company is also working with few technology partners where the offerings complement each other and we can offer specific solutions in a niche area or industry using the Loanguard platform.