How Finezza Helped Gromor Improve Their Loan Management Process

Gromor Finance is a leading fintech company set up with a vision to make small business owners sustain financially. For their lending management solution, they relied on Finezza. Here’s how Gromor benefited by automating their disparate processes and improve its loan processing efficiency, using Finezza. It also enabled improved customer experience.

Introduction

Gromor Finance is a lending company specialising in unsecured small business loans for businesses that have been active for at least one year. 

Small businesses are integral to the growth of Indian economy, adding up to 45% of the total Indian manufacturing output. 

For any small business, funding is often a crucial need to turn their dreams to reality and Gromor, plays a pivotal part to nourish the small business ecosystem of India. It aims to empower small businesses to grow, by helping them with instant funds to purchase new premises, upgrade technology, hire more people, or simply meet their working capital requirements.

What differentiates Gromor Finance from the other lenders? Let’s take a look at some of the factors that make them stand out.

• Simple Online Application Process – Just head to their website, and fill in the application form. 
• Affordable interest rates. 
• Transparent assessment of business loan applications.
• Data security and confidentiality.
• Faster processing of loan applications.

The Challenges

The main idea behind Gromor Finance was to encourage small businesses to focus on growth, and not let the lack of funds or inaccessibility to funds become a hurdle in their path.

However, they found that to be able to meet the need for quick funding, they had to work on their lead-to-disbursement TAT. There were still a number of inadvertent inefficiencies that stopped them from achieving the optimal lending lifecycle.

For one, the loan origination and loan management systems were disconnected from each other. As a result, it widened the knowledge gap between the various teams, making it tedious to reconcile information and ensure quick evaluation and disbursement. 

They also realised that the data flowing into the system wasn’t being utilised. This was because of the lack of a centralised system that every team along the lifecycle could access and thereafter, make informed decisions. In addition to this, Gromor was dependent on a uni-dimensional credit assessment system. Their credit assessment was largely based on traditional CIBIL scores.

Let’s take a quick look at all the issues Gromor was facing with lending lifecycle management. 

• Disparate legacy systems for loan origination and loan management, making lending lifecycle management a disjointed, complicated process.
• Lack of analytical abilities to gather insights from the truckloads of data flowing into the system.
• Fractured decision-making owing to the lack of centralised profiles of small business owners and their borrowing histories.
• Incompatibility with the different formats of bank statements submitted by applicants.
• Uni-dimensional credit assessment system that was primarily dependent on CIBIL scores. Considering that the small business industry is largely unorganised, this proved to be an incomplete and ineffective way to assess the creditworthiness of a business owner.
• Problems and errors during assimilation of data by collection agents and traveling salesperson which eventually created major backlogs and hurdles in achieving a simple, seamless and largely automated lending process.

What Gromor Finance Needed

Essentially, what Gromor Finance needed was a unified loan management system, to make the entire process fair, transparent and visible to all stakeholders across the lending lifecycle, at any given time.

They needed a centralised database that could give all involved teams a 360° view of the customers and their companies.

Additionally, since their credit assessment system did not take into account multiple sources of credit information, and they also weren’t utilising the data flowing into the system, they couldn’t make quicker and more effective decisions. They needed sophisticated analytics and a more comprehensive credit score to be able to assess loan applications accurately.

The Solution – Finezza Lending Lifecycle Management Software

We worked extensively with Gromor Finance to understand and map their processes while identifying the gaps and bottlenecks. We customised Finezza to meet their requirements and delivered a loan management solution to optimise the lending management lifecycle, and also make the most of all the data that was flowing into the system.

Finezza’s comprehensive loan management solution combines all the processes including loan origination, loan management, the credit assessment, servicing and collection into a single system. It followed an agile and iterative implementation assisting Gromor at every phase to replace their old fragmented systems with Finezza’s single cohesive unit.

Loan Lifecycle Management

Finezza’s intuitive solution for lending lifecycle management offers an integrated platform that combines all aspects of loan origination and loan management, thereby making the process and data transparent to all the teams involved. 

Finezza also integrates information from the 4 main credit bureaus (namely CIBIL, CRIF, Experian, and Equifax), and helps create a more comprehensive credit score that  Gromor can depend on to check the creditworthiness of the customer. With this detailed credit analysis, combined with updated KYC information, compatibility with varied formats of bank statements, GST analytics, and an effective loan eligibility estimator, they were able to make decisions faster to facilitate quicker loan processing. 

In a highly volatile small business market sector, it helped Gromor Finance to do away with false positives and ensure reliable assessments.

Once the loan was disbursed, the system also took care of loan repayments and post-loan collection workflows helping to service the customers with an insight-driven experience. Finezza offered a unique mobile ecosystem that included a customer app, an FoS app, and a collections app that provided transparent and quick access of information to all key stakeholders from a central repository.

Vertical Solutions for Decisioning

In the previous system of Gromor, there was no scope for decision making even if abundant data was available. There was not an effective way to make well-informed and predictive decisions. But with Finezza’s sophisticated analytics suite, Gromor was able to access decision-making reports that helped to improve their process, set a loan turnaround time, and make sure that they adhered to it.

Finezza offers preloaded reports of special functions and insights using top of the edge machine learning and big data technologies. With continued use of the product, Gromor was able to generate custom reports with minimal development intervention and make several operational decisions that helped to improve their customer service.

Results Delivered

1. From Uni-dimensional to Multidimensional Credit Assessment

Instead of following a uni-dimensional approach to assessing the creditworthiness of an individual, Finezza helped Gromor to consider multiple sources of assessment that go beyond the CIBIL scores. 

Finezza’s loan eligibility estimator takes into account several inputs ranging from bank statements, previous loan history, multi-credit bureau integration, GST information and more. This helped Gromor to predict the potential success of loan repayment and do away with false positives, which was not possible with the earlier approach.

2. Avoiding the Data Silos

The earlier systems of Gromor relied on fragmented and separated systems across the several stages of the loan lifecycle. But it was Finezza that powered Gromor with a centralised view of the entire loan lifecycle. There were no knowledge gaps and everybody was able to access the information they needed in real time and pass on feedback throughout the system.

Additionally, the analytical capabilities offered by Finezza helped Gromor Finance take informed decisions about the eligibility of an applicant.

3. Mobile Ecosystem

Finezza’s mobile ecosystem provides an intuitive suite of apps designed for all the stakeholders, that helped to reduce the loan turnaround time, automate customer notifications, and make key decisions.

Overall, Gromor Finance was able to ensure that the customer’s journey from application to disbursal was short and sweet.

With Finezza, they managed to streamline their lending lifecycle management process, and increase the client base owing to the time saved. 

We are happy that Finezza helped make Gromor Finance a more effective, and successful lender!