In 2022, around 160 million people in India were credit-underserved. One reason for this is the overreliance on traditional scoring models, which typically consider parameters such as payment history, debt-to-income ratio, and length of credit. However, traditional credit scoring models do not account for an individual’s lack of credit history or other important parameters, including […]
AI-Powered Credit Underwriting: The Four-Step Approach
The adoption of AI in the credit underwriting process is expected to be one of the most significant changes in the lending sector over the coming decade. The technology spend on AI systems in the lending sector, for instance, is expected to increase from $11.7 billion in 2021 to $27.7 billion in 2025. One of […]
Alternative Data in Digital Lending: Game-Changing Strategy for Modern Financial Institutions
Digital lendi͏ng is witnessing a͏n unpre͏ce͏dented transfor͏mation. Traditional credit assessment methods, which rely heavily on inc͏o͏me stateme͏nts, tax returns, and credit ͏scor͏es, ͏often͏ exclud͏e͏ a vast segmen͏t o͏f p͏oten͏ti͏al ͏borrowers. Acco͏r͏ding to a report by Tr͏ansUnion CIBIL, over 160 mil͏lion Ind͏ian͏s ͏remain ou͏tside the fo͏rmal credit system due to insufficient ͏credit ͏history. This gap͏ has […]
Detecting Mortgage Loan Fraud: Top 7 Red Flags Every Lender Must Know
Mortgage lending has always been a lucrative yet high-risk segment for financial institutions. However, as digitisation increases and fraudulent actors become more sophisticated, mortgage loan fraud is emerging as a pressing concern for lenders. For lenders, early detection of mortgage loan fraud is essential to avoid non-performing assets (NPAs), legal issues, and reputational loss. To […]
The Tangible Benefits of Implementing Advanced Loan Origination Software
Traditional loan origination processes, plagued by manual bottlenecks, delayed approvals, and regulatory risks, cannot keep up with increasing demand. The need for a significant transformation is evident. The Loan Origination Software (LOS) can be that. It automates loan workflows, improves accuracy, and ensures compliance with changing financial regulations. With digital lending in India expected to […]
6 Red Flags Loan Officers Should Monitor in Bank Statements
As lenders expand their operations and take on more borrowers, they are also prone to more risks. In February 2025, for instance, the Bank of India declared loan fraud to the tune of INR 226.84 crore by an Odisha-based power Infrastructure business. Such liabilities eat into the liquidity, stability, and profitability of lending operations. Bank […]