Every Fintech is pitching the same story where they can disburse the loan in less than 10 mins, or in-principle loan approval can be given in 5 mins.

But No Fintech says collections/recovery can be done in 10 mins.

Do you know why?

Underwriting can go fully digital, but Collections will always be enabled by digital, meaning there will be a certain set of customers to whom you will necessarily have to reach out physically.

In Digital lending, what can we do on collections:
a) Build collection models that help us identify customers who will self-repay versus reach out to them on cold calling versus physical visits.

b) If you enable the customers by providing multiple repayment options, the probability that they’ll repay is higher. For ex: BBPS, UPI Apps, and a link are sent to the customer where they can click and repay.

But if somebody is moving to 30 days delinquent, then Tele-calling + physical collection is advisable.

#fintech #manispeaksmoney

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