An account rarely goes from healthy to 30 Days Past Due (DPD) overnight. That pattern shows up across lender portfolios, and it’s the reason Finezza built its Bureau Rule Engine. The signals are usually visible one to two months earlier: a late salary credit, a missed Goods and Services Tax (GST) filing, a National Automated […]
Open Banking and Delinquency Management: Using Real-Time Data to Intervene Before Loans Go NPA
Most delinquency management frameworks are built around the wrong moment. They’re designed to activate once a borrower has missed a payment, which means the financial stress driving that missed payment has been accumulating for weeks, sometimes months, without triggering any response. By the time a Loan Management System (LMS) flags an account as 30 Days […]
Behavioural Scoring: A Smarter Way to Assess Credit Risk
Behavioural scoring lets lenders assess a borrower’s creditworthiness using non-traditional signals, like spending habits, digital activity, and credit utilisation, alongside standard credit history. It fills a gap traditional scoring can’t: assessing borrowers who don’t have enough credit history for a standard score to mean much. This matters because a large share of India’s population still […]
Managing Loan Delinquency: Wake-Up Call for MFI Lenders
Did you know that rising loan delinquency rates can lead to significant opportunity costs and damage the reputation of Microfinance Institutions (MFIs)? According to a recent Business Standard report, non-banking financial companies (NBFCs) focusing on microfinance may face higher credit costs due to increasing loan delinquencies. In addition, the asset growth of these companies is […]
How Finezza’s Delinquency Management Helps Streamline Loans?
Effective delinquency management is a looming concern for lenders of all types and sizes. Every lender’s operations may account for some level of loan delinquency. But if that level becomes too high, it can negatively affect your business, including increased collection costs, reduced profitability, and reputational risk. According to reports by a credit information bureau, […]
Best Practices for Delinquency Management in a Post-COVID World
What does the post-COVID world look like? Well, no one really knows but the world is slowly inching toward it for sure. In the course of a year, the COVID-19 pandemic has affected people in every sector, however, the most damage was perhaps felt by the financial sectors, including non-banking financial institutions (NBFIs), banks, fintech, […]