In an age of algorithms, how can we leverage data to truly engage our customers and provide real value - to be there at the right place, at the right time, regardless of their demographics? From lenders to landlords to telcos, credit scores are key to our ability to obtain credit, determine loan rates, set security deposits, or even secure employment. However, if you ask consumers what their credit scores are, or what data are being used to derive those scores, most will probably tell you that they don't know. In fact, according to a survey by Lending Tree, "Nearly 4 in 10 Americans have no idea how credit scores work." This is in spite of the fact that services like Credit Karma, providing free credit scores, reports and insights to tens of millions of users.
Becoming a digital bank is at the forefront of most organizations' priorities, with the intention to improve the customer experience while reducing costs. More than simply a pretty app, the winners in consumer lending will be those who rethink the back-end processes to provide funds in minutes, not hours. Subscribe to The Financial Brand via email for FREE!As digital lending competition increases, lenders must take advantage of new technologies and capabilities that make engagement simpler and faster. Beyond converting paper to a digital document, a digital loan reduces the steps and automates many processes to turn borrowing into a very quick, painless process. It's clear that the traditional consumer borrowing process leaves a lot to be desired in terms of borrower experience.
Lending by Fintech, startups have added new dimensions to the financial intermediation process and has boosted financial inclusion, especially by helping borrowers. The Fintech lending industry is constantly innovating and is set to grow to $100 billion by 2023. Also, a growing number of non-financial startups such as Ola and Mi are trying to become lending players as well. To know more about this industry and for this week's Deep Dive, Analytics India Magazine got in touch with Anuj Kacker, COO and Co-Founder of MoneyTap. Bangalore-based MoneyTap was launched in 2015 and is currently available in 44 cities in India.
CashlessConsumer runs a fortnightly series of deep dive sessions on the technology powering payments, policy implications and real-world practice of digital payments. The Center for Long-Term Cybersecurity (CLTC) has published a new report, A New Era for Credit Scoring: Financial Inclusion, Data Security, and Privacy Protection in the Age of Digital Lending, that examines the trade-offs associated with digital lending platforms in India. By providing small loans to consumers through their mobile phones, lending apps have broadened access to credit for low-income borrowers. But they have also introduced new threats to fairness, privacy, and digital security, as lenders use an array of personal data -- including age, location, and even personal contacts -- to gauge an individual's willingness and ability to pay. Who should participate: * Practitioners from fintech and digital payments, including engineers and product managers.