Another startup NeoGrowth has a system in place where 85% of the loans are daily repayment products and 45% of loans have repayments from exclusive terminals which mitigates risk of default. “This model ensures a high collection efficiency of over 98%,” claimed Piyush Khaitan, Founder and managing director, NeoGrowth.

And that’s just one way of doing it. Mumbai-based ePayLater uses real-time microservices to gather data in real-time leveraging data science and algorithms, NeoGrowth uses digital payments data (notably card sales) while Lendingkart extracts up to 8,500 data points to assess intent and ability of the customer using machine learning and other deeptech models.

Interestingly, NeoGrowth has developed APIs into other permission-based rich data sources like the credit bureaus, GST data, merchant acquiring databases etc. Not only its underwriting or daily data insights model but even the repayment of NeoGrowth loans is based on a daily repayment model, where the amount repayable to them is remitted directly by the card acquiring bank to NeoGrowth.

“This is only possible because of our digital interfaces with the banks, and advance suite, our proprietary loan origination system (LOS) and loan management system (LMS) which is purpose-built for NeoCash, our unique loan product. Advance suite also directly interfaces with our data warehouse, which is a critical repository of all data sources and serves as a ’single source of truth’ for all management reporting and ‘deep analytics’,” added Khaitan.

As NeoGrowth’s Khaitan aptly said it’s time to leverage technology in smart ways for the future sustainability and growth of the business.

These deeptech models become smarter as we feed them with more and more data. Thus, helping us create a bespoke offering in terms of the loan amount, tenure and pricing for various kinds of customers.