Finbox

An NBFC wanted to adopt end-to-end digitalisation of the loan process as part of its digital growth strategy. The catch?

Building a whole lending system isn’t the same as introducing a new tool — that too for an NBFC whose loan book runs into thousands of crores. Hence, for it to be able to execute its digital strategy, it had to choose one of three options — build, buy, or partner.

For a large NBFC, a build and buy strategy presented the risk of backsliding into digitisation rather than digital transformation. It’s the difference between simply converting analog practices into their digital equivalents as opposed to building a fintech stack that reimagines the entire lending journey. A radical change initiative such as this needed strong convergence of exponential technology, business strategy, and innovation.

With emerging digital lending companies in India, the country witnessed a growth of CAGR 39.5 percent over a span of 10 years. India's digital lending market was worth USD 270 billion in 2022 and is expected to reach USD 350 billion by 2023.

Additionally, disbursement in the Indian lending market witnessed a growth of 11 percent and reached Rs 174 trillion in FY22, compared to Rs 11.4 trillion in FY17, with a record growth of CAGR 72 percent. The disbursement is further expected to grow and reach Rs 275 trillion in FY26 registering a growth of CAGR 12 percent.

Annexure I : The AUM of NBFCs in India over the years

AUM Growth To Double

Annexure II : Credit Card Transactions in India over the years

Credit Card Transactions

Annexure III : Credit Growth of Banks & NBFCs

Credit Growth of Banks & NBFCs (%)

With Finbox’ alternate data intelligence SDK FinBox DeviceConnect, the NBFC has been able to underwrite hitherto untapped segments of the population — new-to credit (NTC) borrowers.

Below is a small use case Finbox has created:

Finbox is propelling digital credit through a multi-channel approach. FinBox has created a dashboard that unites all the credit distribution channels of the NBFC. Using this, employees of the NBFC can manage loans on all its partner platforms, build reports, and understand the target audience better. It allows the NBFC to cater to users throughout the lending journey, from onboarding to debt collection. When it comes to loan recovery, our collections prioritisation system FinBox CollectX identifies risky borrowers and flags them five days prior to due dates, so that the NBFC can allocate resources strategically and use targeted communication.

Apart from this, Finbox is solving for various other banking infra white gaps in the financial ecosystem. Its various products include :