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FinBraine wins The Best Lending Tech of the Year at the Business Leader of the Year awards

FinBraine wins The Best Lending Tech of the Year at the Business Leader of the Year awards

Mumbai, 19th Feb 2024:

FinBraine, a leading provider of fintech solutions, has been awarded the Best Lending Tech of the Year at the 2024 Business Leader of the Year award, for their next-gen lending solution, CredBraine.

CredBraine, powered by AI, data analytics, and scoring algorithms within its credit decision engine is revolutionizing the digital finance sector. It is redefining the landscape for micro-lending institutions, through their automated lending processes, enabling innovations across under-banked market sectors.

It empowers banks, telecoms, and consumer lenders to elevate credit quality and acceptance rates. By leveraging big data, it provides unparalleled micro-credit and loan origination services.

This recognition at the Business Leader of the Year 2024 awards shows FinBraine’s commitment to enabling innovation in the industry.

“We are honored to receive the ‘Best Lending Tech of the Year’ award that reflects our pursuit of excellence in developing intelligent lending solutions,” said Ashutosh Agrawal, Group CEO. “CredBraine supports lending enterprises and banks, enabling end consumers like farmers and micro-entrepreneurs to keep their business in motion, positively impacting their livelihoods.”

FinBraine expresses gratitude to the esteemed judging panel and extends appreciation to their clients, partners, and the entire team for their collective efforts in achieving this recognition.

 

For media inquiries, please contact:

Media Contact: Pournima Chavan
[email protected]

 
About FinBraine:

FinBraine’s mission is to enable organizations to adapt to changing customer preferences by creating omni-channel Intelligent KYC and Digital Lending Solutions. The company believes that every individual should have equal access to credit and is working towards delinking creditworthiness from traditional methods of determining a credit score. FinBraine creates AI/ML-based solutions to empower cloud lending, retail, payday loans, microfinance, in-house lending, lease financing, medical, dental, MFIs, student loans, factoring, invoice financing, and telecom. It offers a 360-degree modular KYC and Lending Solution that can automate end-to-end loan processes starting from origination to collection for banks, MFIs, SMEs, peer-to-peer and direct lenders, auto financing companies, mortgage providers, in-house finance, and credit unions. FinBraine is backed by years of expertise in implementing innovative technologies around the world through our group companies, Globe Teleservices, and New Vision IT services. The group companies offer services to more than 500 blue-chip clients across the globe.

Automation and Digitalisation in Micro-Lending: The Big Game Changer

Automation and Digitalisation in Micro-Lending: The Big Game Changer

Tech evolution has saved so much time, money, and human resource by automating things and bringing in digitalization for credits and payments. 

 

The terms are synonyms for savings and banks & lending institutions around the world are enjoying the transformation. Now they can do better in the continued process of lending that earlier was human-intensive, but now can be automated. 

 

The need for smaller credits, and their instant nature of approvals has attracted the attention and adoption from borrowers who may never opt for larger loans – for lack of payback capacity or creditworthiness. This is where micro-lending takes the centre stage and makes MFIs, NBFCs or other alternative lending platforms more significant. 

 

Micro-Lending and the Need for Automation

 

Despite the less intricate processes or low loan amounts, the need for credit assessment remains the same even for micro-lenders. Micro-lending continues to be a mammoth task involving the recording and relay of several data points for informed decisions and real-time disbursements. 

Digitalization and Automation can help encourage borrowers to self-onboard the mobile apps allowing data collection.Digital channels help boost the customer engagement and retention. Borrowing can be evidently made more rewarding and profitable. 

 

Some Evident Advantages of Micro-finance Digitalization

 

Customer Focus: 

 

The customer gets access to loans with less questions asked and fulfils a need. Micro-finance at least appears private to many borrowers even though they are aware their online behaviour is being tracked. They aren’t answerable as to why they need that small loan.

 

Operational Risk Coverage: 

 

There is no cash-in-transit risk. All the payback happens effectively through digital channels making it easy for lenders to record and receive. 

Customer protection: 

 

Since the tracking and transactions happen online, the customer feels well protected and covered in terms of history and repayments. 

 

Boon to Small Businesses: 

 

The micro-lending accessibility has empowered several small businesses to transparently and confidently access loans. They do not need to show a huge track record or bank balance to prove their creditworthiness.  

 

Cross Industry Collaborations:  

 

Digitalization apparently boosts inter dependability and collaborations between industries such as banks and telecom for communications. 

 

The Boon to Relationship Banking with Digitalization of Micro-lending

 

The digitalization of MFIs allows data collection to an optimal level – allowing analytics and personalization to occur at a later stage. Customer personalization and recommendations can effectively boost the borrower-lender relationship and trust. 

 

Chatbots can also play a pivotal role here in keeping the customers engaged and entertained. The borrowers in micro-lending are often those who do not have access to mainstream or larger loans. Given that, micro-lending also opens avenues for these small borrowers to aspire high and fulfil their dreams. 

 

The fact that it all becomes automated and digitalized- a mobile user can actively opt for lending and sit back without the need to manually track and record the paybacks.

 

Digitalization Can Protect MFIs from Risk of Being Kicked Out by Fintechs

 

An AI-powered engine for micro-lending can help MFIs remain as agile and cognizant in lending as larger fintechs. They can collect data, personalize experiences and deliver a better borrowing experience to their customers.

Preventing Frauds with Powerful Fintech Solutions and Strategies

Preventing Frauds with Powerful Fintech Solutions and Strategies

Cybercrimes and frauds continue to be a perennial problem facing various industries. The highest implications reflect on the financial sector though – hammering the need to continually upgrade security systems and adopting shields that identify risks faster. In doing that, they also need to implement solutions that keep the customers’ experience smooth and simplified. This may become complex for the Fintechs, isn’t it? There are ways to tackle this. 

Before we jump to the solutions, taking a quick look at the different types of frauds can prove significant for you. 

 

Types of Common Cyber Frauds

 

New Account related Frauds: 

These frauds are reported soon after opening a new account. These frauds are exceptionally risky and damaging since tracking back their history and records remains near to impossible in these cases. These need to be checked up and tracked through any kind of benign activities being performed after opening of the new account. Under most circumstances, new account frauds occur within 90 days of opening of the account. 

 

Card-not-present or CNP frauds

This type of fraud is severely common and can become costly for the lending systems. A high amount of risk mitigation has to be employed to manage this category of fraud. The payment standards and compliances can help prevent these kinds of frauds and ensure data security. Features such as Address verification service, card verification value etc help keep the cards unique, valid and recognizable.  

 

ID Frauds 

The most common and wide-spread form of fraud, Identification fraud hits various industries and brings huge amounts of damages. This practice involves unethical and non-permitted use of a person’s data – without authorization – to deceive another party. 

Use of Fake IDs, synthetic ID frauds etc to acquire critical documents such as driving licences, bank accounts for even credit cards etc fall in this category and cause damage to the systems as well as the people whose identity gets misused. 

 

The Prevention – Solutions, Strategies and Best Practices 

 

AI-based ID and Biometric Authentication:

Intelligent AI-powered solutions that can smartly detect any kind of deviations and defiance at the initial stage can save millions for businesses. Preventing frauds can become a possibility if businesses opt for effective ID verification solutions that are further powered by liveness detection and proof of possession verification etc. Combining liveness with proof of possession can add a double check layer for verification. 

 

Data from Different Sources for Fraud-fighting: 

Mobile IDs can go a long way in helping collect data about a user which can be matched up or cross-checked to ensure the applicant is genuine. Shipping addresses, card numbers, access to mobile info such as contacts, camera etc. This practice can effectively help differentiate between legitimate customers and fraudsters. 

 

Making Fraud Prevention a Priority 

There are a set of best practices in Fraud prevention that can be commonly implemented by all the industry players to make sure they contribute enough. Preventing frauds by making it a top priority is the need of the hour. From options for eKYC to investing in the most trusted solutions around these, business players can take their digital transformation and bring the right fruits for their investment.

The Top Credit Scoring Metrics Lenders Should Follow

The Top Credit Scoring Metrics Lenders Should Follow

Consumers, all around the world, are now borrowing more than ever. The need for a better lifestyle, meet the luxury aspirations, and improve quality of life – has motivated consumers to borrow readily. This has evidently given rise to the need for faster, effective and secure credit scoring. AI-based algorithms are the perfect answer to fraud risks, and the need for delivering a  better borrowing experience. 

 

Since all borrowers cannot behave and think the same way – their creditworthiness cannot be determined with a fixed set of parameters. Your scoring system has to be widespread and must consider a 360-degree data collection and analysis. 

 

#1 Telecom Score 

Telecom data has good correlation with credit risk estimation of possible default in the future it must include the features of: 

  • Suscripción (perfil, duración, productos, agrupación)
  • Uso (patrón de llamadas, dispositivo móvil, P2P/micro pagos, instalación de dispositivos)
  • Facturación (patrón de recarga de prepago, servicios VAS, crédito de recarga, pospago vencido, suspensión y recuperación)
  • Otros (ubicación, itinerancia en el extranjero, patrón VOC, descargas de aplicaciones financieras)
 

#2 Social Score 

Data available through smart phones based on browsing history and personality analysis help in determining social score. This can take into account: 

  • Datos demográficos
  •  Datos sobre el contenido
  •  Datos de red
  •  Mensajes SMS
 

#3 Financial Score 

Algunos de los factores que afectan al crédito son los pagos tardíos, las cuentas más antiguas, el uso del crédito, las investigaciones, el saldo total y el crédito disponible.

  • Cartera o dinero móvil
  •  Bancos/MFI
  •  Oficina de crédito
 

#4 Transaction Score 

El puntaje de las transacciones se calcula en función de las compras realizadas en diferentes canales.

  • E-comercio
  •  Historial de las compras
  •  Transacciones en el punto de venta (TPV)
  •  Pagos a comerciantes
 

#5 KYC Score 

Puntaje que se calcula en función de cómo se puede identificar y verificar al cliente

  • Verificación de campo y validación
  •  Coincidencia de rostros y detección de actividad
 

#6 Info Score 

Lo que posee y lo que gana rige tu Info Score, que se calcula en función de sus ingresos y gastos de utilidad

  • Uso de datos de servicios– Energía, Gas
  • Datos sobre los activos - propiedad, locación
  • Empleo - Ingresos / Salario
 

If the lending system takes into account these prominent scoring metrics, they are covered against the risks of frauds upto a high extent. Effective credit scoring can help safeguard against impersonation frauds, instant validation, false salary validation, instant data extraction, etc. 

All these metrics together reflect the score in the form of credit score cards. A higher credit score means a lower risk of default. Applicants with a good payback history are often likely to have a good credit score. 

 

It is Recommended for Applicants to Keep A Track of Their Credit Record

Credit scores and reports can be easily calculated for individuals. Keeping a good record of the credit score helps boost the confidence of the applicant. This can easily be compared with the instant and automated credit report card generated by AI-powered solutions. These can be mapped for a smooth transition and approvals for loan origination. 

Automated Credit scoring systems are fast empowering banks, telecoms, Wallet service providers, and consumer lenders towards instant and accurate credit scoring and faster than ever loan processing.

3 Ways Biometric Authentication is Revolutionizing the Financial Industry

3 Ways Biometric Authentication is Revolutionizing the Financial Industry

“Banks have to upgrade themselves, or risk being burnt to the ground.” 

–JP Nicols

Image Source

Biometrics isn’t a new concept and banks that don’t implement this technology risk missing out on the latest revenue opportunities. It’s not about just security, customers absolutely want biometrics to be part of finance offerings according to research by iProov. 

There are different applications for biometrics in the finance sector such as customer onboarding, authentication, ID verification, and border and access control. Face verification technology is used in conjunction with biometrics for liveness detection and companies are investing up to USD 14.3 million dollars for these projects.

Over 30% of banks do not let customers open accounts without completing biometrics and this type of verification streamlines vario us security processes. A majority of global banks online do not allow PIN number change or request for new debit cards unless the customer passes their physical verification identity checks. Due to the increasing number of fraudulent transactions in the finance industry, manufacturers are stepping up their game and implementing multi-sample biometric verification in online gateways. Biometric solutions incorporate a range of fully-automated face, iris, voice, fingerprint, etc., to verify customers and ascertain their physical identities in real-time.

Vein and gait authentication is an emerging trend where the users’ sense of movement, hand vein DNA, and style of speaking are recorded. The finger vein is a unique physical trait which doesn’t change with age and vein verification technology was introduced in 1992. Authentications results are much higher and cannot be faked when compared face or finger sensing technologies, thus making vein verification biometrics very popular. Contact-based and contactless biometrics is encouraging researchers to develop more applications in this field and revolutionize the finance industry.

Online banking apps protect the identity of clients by using biometrics when they make purchases across the world. The rapid digitization of finance industry is encouraging new players to adopt the latest biometric identification trends. Companies are using stricter employee identification protocols and biometrics is becoming a integral part of banking security.

Long story short, customers want biometrics solutions too. 

From applications such as signing into accounts, opening or closing savings accounts, applying for new loans and more, biometric authentication offers a host of benefits and makes it easier to onboard customers for everyday transactions.

Here are some of the top ways biometric authentication is revolutionizing the financial industry:

Quickly Authenticates Customers

Concerns about online ID theft and fear of social engineering practices are prompting players to implement biometrics into everyday life.

According to a recent survey by Experian, over 61% of adults in the UK believe that biometrics is just as secure as current banking systems for online banking and in-person logins. It’s more secure than current methods of password management and research revealed that customers have greater confidence linking their social media accounts with banking applications. Biometrics Single Sign-On (SSO) Solution removes the burden of password management and lets customers access their banking information on any network without compromising security.

Users can encrypt specific files using biometric identity scans and can open them from any device via a single log-in. These solutions feature supporting regulatory compliance from frameworks such as Sarbanes-Oxley and HIPAA as well, thus making them trustworthy and reliable.

Easy Virtual Onboarding

The COVID-19 pandemic has changed the world In many and contactless authentication is now an essential part of biometrics. Social distancing is practiced to prevent the spread of the virus which is why many leading banks use biometric authentication for virtual onboarding. With this technology, users can sign in from anywhere, anytime, and from any device. Virtual onboarding facilitates Omni-channel applications which are integrated into core finance systems. 

Detect and Prevent Fraud

Banks are using biometrics to comply with the latest ISO standards and maintain an audit trail of their customers. The technology is used to track and monitor customer activities with the aim of looking out for suspicious behaviors on networks. Biometric technology solutions keep a log of customer activities within systems so anytime a problem crops up, users get immediately alerted or flagged. 

A major benefit of biometrics is its application in preventing fraud. Biometrics solutions are used to prevent insider fraud and allow banks to deploy strong employee identification checks. There is no scope for leaking sensitive data to third-parties and users are held accountable for managing personal information. An extra layer of security gets added when facial biometrics is combined with fingerprint and other types of scanning. If a fraudster happens to bypass fingerprint scanners somehow, they cannot get past the other identity checks.

Conclusion

Although biometrics is being heavily implemented in the finance industry, other sectors such as governments, retail, businesses, startups, and non-banking financial institutions are catching up. The technology took the world by storm when Apple first launched its Touch ID biometrics with Samsung coming second with fingerprint scanning. More customers are realizing that the future of banking is biometrics and when you choose this technology, there is no need to install new hardware or implement manual identity checks. 

From greater employee satisfaction, faster transactions, streamlined identification, and fraud prevention, biometrics is becoming critical and will continue to revolutionize companies across the globe.

References:

The Rise of Microlending in a Digital World

The Rise of Microlending in a Digital World

Microfinance seeks to bring financial services to the segment of the population that is largely underbanked and does not have ready access to formal financial services. Microfinance institutions have two goals: to make a social impact by providing microlending solutions and bringing financial inclusion.

Microlending creates enormous prospects for lending companies that can utilise their prior lending knowledge and market products to individuals and SMEs seeking quicker and more transparent loans.

MFIs, NBFCs, and online lending platforms are deploying technologies to automate end-to-end customer acquisition, the credit assessment, and loan disbursals. Platforms that integrate CIBIL/CRIF, KYC databases, and various new age data points to profile prospects are in high demand. There is an immediate need for real-time disbursements and cashless transactions from banks along with seamless integrations that can service customers and provide them with on-demand credit when needed.

Microlending platforms will motivate borrowers to self-onboard themselves by subscribing to mobile apps and capturing digital footprints to avail a smooth credit lending experience. The digital transformation will result in better debt collections and e-payment channels like direct debit, eNACH, and e-wallets will generate greater profitability, improve repayments, and enhance customer engagement.

Digitisation and automation are the two biggest trends companies are investing in today. Lenders are focusing on improving credit decisioning processes and reaching more businesses. 

The global microlending market is forecasted to reach a valuation of USD 343.84 billion by 2027 and grow at a CAGR of 12.6% from 2020-27. Microlending helps underprivileged individuals gain access to financial services, acquire capital, and improve their lifestyles. Small loans with shorter repayment cycles bring lucrative opportunities to small business owners and help solo entrepreneurs kickstart new ventures. The key players in this segment are BlueVine, Inc., Fundera, Accion International, Kabbage, Inc., StreetShares, Inc., and many others. FiveStar raised USD 234 million in funding rounds and global investors are getting interested in startups that are investing in advanced micro-financing systems. Various organic and inorganic growth strategies are being used by market players to strengthen their positioning and increase the number of shares. Digital technology is also more reliable, improves transaction efficiency, and reduces costs related to taking loans by cash.

Artificial Intelligence in Micro Lending

Challenges with not following compliance requirements can spell trouble for organizations. Companies are implementing end-of-the-line Ai workflows into their compliance and benefiting from saving on expenses. The cost of running these technologies is expensive but cheaper than getting sued or fined for a lack of compliance. AI ensures compliance with specific jurisdictions, and differences in laws, and adapts to universal standards.

Tracking and monitoring compliance, stress testing systems, borrower identification, and identity fraud prevention are some of its leading applications. Data security in the cybersecurity world regularly requires updates and self-teaching Ai algorithms are an important innovation. A good example of this is the case of JPMorgan Chase’s technology that uses accurate image recognition to automate over 360,000 hours of work. Security processes that benefit from implementing AI models are spam filters, botnet detection, network intrusion prevention, user authentication, credit scoring, and finding the best credit offers for consumers.

Conclusion

The micro-lending market experienced a significant downfall during the onset of the COVID-19 pandemic with various small businesses and institutions being forced to shut down operations. However, things are changing now as there is an increase in its adoption by various citizens in Asia-Pacific and LAMEA regions. Government initiatives in various countries are also driving the growth of this segment, eradicating poverty, and improving the standards of living for poor people. 

To create a successful business, Automation and digitization are the two most crucial concepts that any lender or micro-lending institution should invest in today.

Africa the next destination for fintech boom. How an AI based finance company is reshaping the sector?

Africa the next destination for fintech boom. How an AI based finance company is reshaping the sector?

Africa is onset to establish itself as a promised land of opportunities. The continent is witnessing a new dawn, one which is motivated by advancements in the technology sector. Gone are the days when it was known just for its abundant natural resources. Africa has the youngest population in the world, with 40% of the inhabitants under the age of 15, and 70% in sub–Saharan Africa under the age of 30. The youth dominated and millennial driven demographic makes it the ideal location for technology, specifically Fintech investments. 

Africa witnessed a 300% growth rate in investments in finance technology in the last 4 years, with the sum amounting to more than 2 billion USD. The huge underbanked adult population of around 42% has the been one of the key enablers for world majors as well as start-ups to invest in Africa. Of the total 287 investment in 2021 in fintech sector in Africa, payments & remittance, marketplace lending and wealth tech segments represented 60%. Despite of a motivating environment and market trends, the lack of internet connectivity is still a major concern. Though this may be seen as major challenge, but it has benefited telecom companies that have establish themselves as mobile money transaction facilitators in Zambia, Tanzania, Kenya, Ivory Coast et al.  The need of the hour for the growth of finance and technology sector in Africa is to bridge the gaps that exist between technological developments and its large-scale implementation

Finbraine, an organization that amalgamates AI technology with industrial trends can be a suitable answer to all these issues. The safe, secure, intelligent, and flexible solution offerings by FinBraine will not only add value to the developing sector in Africa but also provide ease of operations to its consumers. IDBraine, the AI based EKYC solution by Finbraine, that offers both biometric and in-app KYC paired alongside information extraction and identification will ease the process of on-boarding new clients for banks as well as start-ups. Simultaneously, the user friendliness of the application shall add to client benefits. Apart from this, FinBraine’s other solution and products shall find the right place in the expanding ecosystem. CredBraine, an AI based lending platform will help banks, telecoms, wallet service providers, and consumer lenders improve credit quality and acceptance rates. The dependable all round IT consulting services offered by FinBraine would allow the consumers to identify shortcomings and improve to provide the end users with the best experience.

Alternate Headlines: 

  • Trends that are accelerating the growth of Fintech in Africa 
  • Growing fintech culture & tech diaspora in Africa.
  • Fintech trends – an African outlook. What’s the need of the hour?
  • Why is Africa the upcoming preference for fintech investments?

LinkedIn Write Up:

What’s making Africa’s great momentum in Fintech space come momentary?

With about 40% of its total 5 billion investment (dedicated to tech start-ups) going to fintech sector in 2021, Africa was set to soar high in wide world of finance and tech market. But as much as the booming market had to offer, the tech implementation still falls short of it. 

Finbraine analyse this shortcomings and offers a strategic solution through its AI based IT products. Ramping the gaps in the wants and needs of banks, telecom companies, mobile wallet firms, other fintech organization and more, Finbraine makes it fast, easy, secure, and customizable, just how it should be.

Importance of API in the lending ecosystem

Importance of API in the lending ecosystem

The ecosystems across industries and verticals have become highly volatile and fast-paced. The impact is evident in consumer behaviours, as well. There has been a huge shift in the borrowing behavior, especially, post-covid, for instance. It is common to see customers borrowing for daily groceries, utilities as well as apparels, and credit is no longer confined to assets or high-value purchases. In tandem, lending has undergone a change, and financial institutions are all caught up delivering better experiences to every customer in this sphere.


This conundrum has brought APIs (Application Programming Interfaces) at the center of the lending ecosystems. APIs in lending promise to create and deliver better, instant solutions to a hurried customer. They also serve as a facilitator finding personalized solutions, while generating bundles of user-generated data for the businesses to decode and leverage.

APIs in Lending Post Covid-19

As a result of COVID-19, lenders have shifted their focus to digital transformation. They are in a spree to transform their legacy and silo systems. Financial services providers, meanwhile, are fast building up seamless and contactless borrowing experiences for their clients.


Due to this rapid pace of digitalization in all aspects of life, lending institutions and financial service providers are faced with the challenge of providing seamless and enriched consumer experiences, however. APIs play a critical role here in the modern post-covid ecosystems by helping businesses become a lot more connected – timelessly.


A lender can now enrich the customer profile with data from multiple sources in order to make accurate decisions by gaining a holistic understanding of the customer’s financial status. In addition, financial institutions can use APIs to develop innovative banking products and services, which will contribute to a sustainable future.

Types of Lending APIs

Onboarding API

Using the onboarding API, lenders can provide their customers with flawless, fast, and omnichannel onboarding experiences. It has traditionally been a lengthy, time-consuming, and inaccurate process to complete the onboarding process. Using the information, lenders can identify information such as loan amount, expected repayment period, and more. As a result, traditional onboarding processes now take minutes to complete.

Credit Underwriting API

APIs for credit underwriting help lenders prepare ideal loans for borrowers by providing relevant, accurate, and timely data. CIBIL and other major alternative sources are used to collect customer credit data and share it with lenders electronically. A lender’s internal system distributes data collected from various sources to the API program to enable lenders to make smart decisions.

Loan Fulfillment API

Loan processing APIs are used to process loans for customers and maintain credit account information so that the platform can bill and process the loans. Credit agreements are created digitally, published, and sent to borrowers and lenders after the credit is approved. The lender would debit the borrower’s account and credit the lender’s account to disburse the loan.

Loan Collection API

Loan collection APIs enable collection agencies to track and collect EMIs by allowing them to access the latest information about borrowers. Since APIs can be used to access a plethora of resources, financial institutions have been able to maximize the recovery of their debts while ensuring complete transparency. Integrating mobile and web platforms enables fast, paperless transaction processing and reduces risk by allowing fast, paperless transaction processing

How do these APIs Actually Work in Lending

Financial institutions can respond to evolving customer needs by integrating APIs into their digital banking products and services. APIs allow mobile check deposits, bill payments, and money transfers between accounts as part of digital banking. Lenders can benefit from APIs in the following ways.


The API allows lenders to access data from any third party, including government and non-government agencies, in order to make a quick decision regarding a loan application. APIs do not contain any data, so they are 100 percent secure and safe.
By utilizing APIs, lenders and financial institutions can integrate third-party vendors that have a good fit with their business model in comparison to the options provided by digital banking vendors.


Financial institutions can integrate APIs with services that will streamline the digital lending process. In this way, borrowers’ driver licenses and mobile phones can be integrated to provide pre-filled information to the lenders.


APIs allow workflow automation, which is a benefit of using them. As automation increases, fewer errors are made, monetary costs are reduced, and operations are more seamless. In order to fulfill your complex reporting requirements, APIs can be used to execute programs, collect data, and transmit data.

Authentication & Authorization- the two As that Make a Huge Difference

APIs are based on authentication and authorization, which can help you understand how they work and why some connections are approved and others are denied:


A connection attempt’s credentials are verified during authentication. During this process, credentials are sent from the remote access client to the remote access server either in plaintext form or encrypted form using an authentication protocol. Authentication is the process of determining whether a connection attempt is valid. Once authentication is successful, authorization occurs. Authorization, then, is asking if you have access to a resource. Authentication simply states that you are who you say you are.


Hence, authentication is important in maintaining security and validation whereas authorization gives the permission to have an access to the resource.

Summing up

APIs in the financial industry is the mainstay now as it unites financial institutions, fintech apps, and consumers together. These solutions bring new possibilities that financial institutions and fintech apps alone cannot provide, and have created a whole new world of financial services that are convenient, secure, and allow financial flexibility.
Enhancing better and faster credit decisions with Automation and AI

Enhancing better and faster credit decisions with Automation and AI

Indian financial services have flourished as compared to the world’s financial panorama up to now decade. In part, this progress is the result of the rapid digitization of data and knowledge-related services. Several non-public and private initiatives have made India’s digital surge possible, many of which have been led by the government and trade bodies. According to a McKinsey report and the worldwide digital competitiveness index, the result has shifted India many places ahead. In contrast to only 20 percent a decade ago, more than 80 percent of people now have their checking accounts. According to the World Financial Institution, India has been able to more than double its percentage of unbanked people and businesses over the last seven years.


Over the past few years, the economy has slowed down and, more recently, it has been hit by the Covid19 pandemic. During this period of sluggish production, banks and financial institutions that have provided liquidity into the system should find new avenues to sustain healthy growth and in that case, AI and Automation are the way for them to regrow. AI and machine learning are now transforming financial services in ways we never imagined, especially lending. Lending institutions may suffer severe financial losses if they choose to resist the adoption of these technologies because of their game-changing advantages.

Lending Process as we knew earlier

Managing loan lifecycles takes a great amount of time & resources because of its complex process. It requires significant manpower resources, beginning with screening prospects and moving through making the lending decision, managing disbursements and underwriting, monitoring the portfolio, and finally handling collections.


Even the treacherous range of tasks and processes can be automated using the new-age technologies that require high operational bandwidth. With digital automation and AI/ML tools, there is an automated and steadfast alternative to every step in the process. It has several advantages, including cost reduction, process efficiencies, and customer service.

One-stop-shop onboarding and digital trust

Lenders are now able to digitally onboard customers with the amassing applications and auto-populating certified data into forms through multiple channels. The initial credit decisions are made based on these customer profiles with the requisite checks and balances. Thus, the screening procedure can be simplified and the probable bad apples can also be identified without bias. The recommendation engine of a suitable customer matches prospects to different financial products.


In a final step, the platform collects the residual documents of a client by having them directly upload them. As a consequence, customer onboarding is now possible securely and remotely, in just a matter of minutes, instead of weeks and months of paperwork and running around.

Assessing risks and endorsing via automation

Based on the size of the loan book, domain expertise, and risk appetite of the financial institution, credit scoring algorithms can be tailored specifically for them. Besides employee data, legal dispute data, and news sentiment analysis, this algorithm can also be enhanced by integrating alternative data points about borrowers. Risk scorecards using machine learning are also often used to assess broader industry parameters such as regulation or consolidation and for evaluating groups of connected directors or promoters.


Automation is also possible in the underwriting process, including asset and collateral analysis. Furthermore, lenders can shift from performance-based lending to cash flow-based lending based on recent business performance, business outlooks, and predictive analytics. Some lenders have found this method to be useful when reducing their non-performing assets and defaulted loans.

Automated collection and monitoring with AI/ML models

Monitoring is one of the aspects of the credit management lifecycle that is unnoticed. As a result of AI/ML technology, it’s possible to gather and analyze vast amounts of data at an unbelievably fast pace – sometimes even in near real-time – compared to the conventional process. It is possible to configure AI algorithms to monitor both financial and nonfinancial parameters about all borrowers. When tangible inputs have escalated the possibility of risk, these systems raise early warnings.


A financial institution has a chance to correct course this way. By requesting help from their collections department, risk officers and analysts can resolve problems with borrowers before it’s too late. In addition, they could engage with borrowers, sell loan portfolios outside of their risk appetite, and grasp how risk in one industry or business could negatively impact their overall portfolio.

Lending is sorted now - the future has arrived

A growing number of smaller and medium-sized enterprises dot the landscape globally, each with its own credit needs so that the lending industry no longer caters only to large corporations and individuals. In a pandemic-stricken world, it serves a much larger (and growing) market. Lenders now have plenty of choices. For them to start operating and growing in their market, all they need is the right processes.


With explainable AI and machine-learning tools, credit decisioning and risk intelligence will be automated. By reducing turnaround time, improving customer experience, improving compliance, reducing operating costs, and enabling financial institutions to be proactive, financial process automation improves efficiency and performance. You can avoid cumbersome paperwork and decision-dependent processes. In addition, lenders can use these tools to shift to flow-based lending rather than continuing with asset-based lending models.

The Next-Level of Customer Experience with Digital Identity Verification

The Next-Level of Customer Experience with Digital Identity Verification

With the rapid digitization across the world, verification of digital identity is fast turning out to be critical for Banks, Telcos, Retailers, and Insurance companies. Onboarding customers is actually a lot more than just onboarding. It is about designing an experience that is seamless, convenient yet secure and stable.

 

 

Digital identity verification solutions are essentially fast, secure, less intrusive, and accurate. They prevent fraud in real-time by authenticating customer identity in the least amount of time. The eKYC solutions empower industries, including banks and financial institutions, to control customer behavior, strengthen compliance with regulatory guidelines, mount customer database credibility, conduct remote authentication, and access documents in real-time, all without affecting their expenditures.

USD 26 billion fines have been levied on banks for non-compliance with AML, KYC, and sanctions in the past ten years (2008-2018).

Crucial for both the bank and its customers, eKYC solutions come as the best line of defense to fight back online identity frauds. Online identity verification services help mitigate the abuse of personal data along with protecting the payment system against money laundering and other bad online invading.

 

To put it simply, digital KYC has turned out to be a vital investment for banks to keep their head above water. On top of that, more than ever before, the ever-changing expectations for fast, secure, and hassle-free verification, have put banks in a race to fix their tedious verification process while preventing ML from sustaining their customer onboarding. Remember, unlike in the past, customers hold more power to shoot up or debunk your organization’s growth dramatically. This means, there is no way to skip this phase!

 

This post will unbox some of the most important highlights, you must know for easy going. So let’s get into it:

What are Digital IDs for eKYC systems?

Having a working digital ID opens doors in the economic, social, and political spheres to a safer and more secure digital world. In addition to verification and authentication, a good digital ID provides uniqueness, user consent, and a high degree of privacy protection. Correctly implemented, this can be of benefit to individuals and societies overall.

 

McKinsey Global Institute research estimated that digital IDs could unlock three to 13% of GDP by 2030 for countries that implement the technology.

 

Banking companies can benefit from digital ID since it enhances customer experience and productivity while improving risk management. The use of digital IDs is replacing the traditional paper-based method of authenticating people’s identities via online traditional verification such as passports and driving licenses. Digital channels may be used to conduct verification such as biometrics (iris, face, fingerprint), PINs, security tokens, passwords, geolocation, or online document verification.

FinBraine Digital Identity Solutions Amend Data Access Anytime, Anywhere

Data is the BIGGEST asset for any organization, and so for banks. Where conventional ID verification restricts banks to bring the transparency factor, online ID verification solutions empower banks to go limitless.

 

Digital Identity Solutions allows organizations to access data in a single tab to improve customer relationships & customer abandonment rates while bringing a transparent system to work in.

FinBraine’s IDBraine solutions help organizations in tremendous ways:

  • Identify and verify customers more quickly and accurately
  • Detects financial crime without damaging crucial customer relationships
  • Faster turnaround times and lower operational costs
  • Enhanced security
  • Improved customer experience and questions

Digital identity verification solutions for Secure Access

Never stress about non – compliance! IDbraine introduces a comprehensive range of intelligent customer onboarding for enhanced customer experience, better regulatory compliance, and increased accuracy of data processing.

 

Customer onboarding is made easier with digital KYC. Identities can be verified with ease, security, and smartness. Based on a risk-based approach, our solution combines convenience and security without sacrificing security.

Some compelling Features of IDBraine

  • Prevención del fraude por robo de identidad
  • Instant validation and verification
  • Instant Data extraction
  • Geo-fencing/ restriction
  • Geotagging- Residence validation
  • Machine learning-based face match validation and liveness detection
  • Captura automatizada de los datos personales
  • Captura de datos del DNI
  • Escaneo biométrico
  • Verificación de la identidad
  • KYC en la aplicación
  • Verificación de rostro y detección la actividad
  • AI-based identity and document validation & verification

Final Thoughts

Digital identity verification solutions are indeed the most effective way to combat fraud in the financial sector. FinBraine’s IDbraine solution package is designed to streamline your customer onboarding process without exceeding your budget. It is possible to secure your customer acquisition and privacy shield using IDBraine’s advanced technologies without significantly impacting your budget.

For more information on IDbraine, click here:https://finbraine.com/products/id-braine/

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