Ever-increasing competition in the lending market and high cost of borrowing involved highlighting a need for more business players to follow agile practices. A lending business that supports a customer-centric approach by including technological integrations and innovations enjoys an edge above the rest. Thus, NBFCs must embrace smart technology.
Today’s borrowers are high maintenance and tech-savvy. They often have hi-tech demands when it comes to credit facilities. Given the diverse nature of Indian economy and demand for credit, NBFCs find it challenging to reach the far end areas of the country and provide their services. Leveraging smart NBFCs software can reduce the overall workforce cost, increase customer satisfaction, enable them to handle enormous numbers of loan inquiries, and avail allied benefits.
What makes Ideal NBFC Software?
There is a need for NBFCs to be creative and offer a suite of services that suit the rapidly changing requirements of the borrowers. Leveraging technological advances, NBFCs can increase its customer outreach and expand their customer base and even cut down operational costs.
Here is a concise guide on what makes the ideal NBFC software:
1. Seamless Customer Experience
NBFCs are on a never-ending quest for untapped market share. They thus offer diverse credit disbursement avenues to applicants who get rejected at the hands of traditional lending institutions. In the view of the enormous volume of loan applications they get, and limited staffing they have, the customer service they offer suffers miserably.
An ideal NBFC Software eases the tedious borrowing procedure from a borrower’s perspective, bringing it to their fingertips. Such software would streamline loan processing and loan servicing time. An NBFC software that allows instant credit access is often considered ideal by the borrowers.
The best NBFC software also allows access to tech tools that help lenders send personalized messages to borrowers, share loan bill payment reminders, or even forward statements. Thus, a lending business that leverages good NBFC software succeeds in strengthening interpersonal relationships with customers, enabling superior customer experiences.
2. Automates Process for Cost-cutting and Time-saving
It is common knowledge that the lending processes are often time-consuming and tedious. NBFCs process loans by accessing a lot of paperwork, and frequently manual evaluation and verification consume days altogether. With a sharp increase in demand for loans, NBFCs need to maintain a thriving workforce, which further incurs more expenses.
Using a good NBFC software paves the way for technological innovations, making operations highly automated at an NBFC. Thus, an NBFC software can ease the scaling up of the business and cuts massive operational costs associated with lending processes like paperwork processing and manual staffing. They dramatically reduce the time required to process a loan application, thus ensuring optimal productivity at an NBFC.
3. Ensures Expansion and Scaling Up through Efficient Loan Processing
While traditional banks characterized reduced risk appetite, it led to the growth of NBFCs. NBFCs often target applicants that face rejections from traditional bankers and rural unorganized and under-banked populace.
NBFCs can follow the trail of expansion only when they develop adequate insights into their target audience. Knowledge about the lending landscape helps them reach their market goals and bring in better revenues. The right tech can help NBFCs analyze the market and capture a larger market share. An ideal NBFC software uses crucial data about their current and potential customers to scale up. The use of data and analytics help NBFCs navigate unorganized sectors of the population. With the help of a good NBFC software, NBFCs can understand their customers better and consequently well-informed lending decisions too.
4. Customised Lending to Please the Borrowers
NBFCs find it hard to enable highly customized services to suit the needs of particular clients. Intense competition in the market often coaxes NBFCs to use new strategies to reach the target audience and impress them. Customers need more than just the standard loan dispensing norms. Only highly innovative and tailored credit offerings can impress borrowers today.
An ideal NBFC software helps NBFC achieve a desirable level of personalization and customization that borrowers often appreciate. Software’s tech tools easily allow borrowers to initiate an application through digital touchpoints with 24/7 access. AI and ML-powered algorithms also help NBFCs recommend specific solutions to the clients as per their needs. Personalized and highly targeted automated messages that ensure personal access and efficient service to borrowers reducing the number of NPAs for the lender.
5. Features Efficient Debt Collection Tools
NBFCs often come under the purview of regulatory authorities and follow strict scrutiny for the collection processes they follow. All NBFCs need to strengthen their debt recovery strategies to earn steady ROIs. Due to the regulations, NBFCs often struggle in coming up with debt recovery strategies, which adversely affect their returns.
All ideal NBFCs software feature unique debt collection tools that ease the debt collection process that loan collectors follow. With efficient NBFC software, lending companies forgo the need to maintain paper-heavy files. They use debt collection tools to issue real-time updates about repayments to borrowers. The use of debt collection tools also eases the process of follow up tracking and location tracking, therefore, reducing the burden off the shoulders of the field collection agent. NBFC software that features debt collection tools sends regular updates to borrowers to increase the chances of timely repayments, minimizing the chances of error through human intervention.
Is Finezza an Ideal NBFC Software for Your Lending Business?
Finezza is an end-to-end lending management software tool for NBFCs and MFIs. Powered by AI and ML tech, the Finezza framework takes care of multi-faceted aspects of lending, right from loan processing and evaluation to the debt recovery phase. The software even features a specially designed analytics suite that incorporates various perspectives for loan application assessment and helps with better decision making to aid the lending firm.
Finezza comes empowered with cutting edge technology to reduce the cost of overall operations in the long run. It is highly customizable to suit the requirements of an NBFC business. Further, it reworks the operational efficiency of the NBFC through automation and minimizing human intervention. What makes Finezza a hit in the NBFC market is that the tech tools it offers escalate the user experience for a borrower giving the NBFC an edge above the market.