Agri-Lender Generates 31X ROI using creditX enabled credit risk scoring

58% lower bad rates

43% more applications

Country

India

Company Size

500 – 1,000

Products

Agri Loans, SME Loans

Type

Agri-Enterprise, Retail Lending, SME Lending

The Challenge

The Agri Enterprise was struggling to scale. With basic rules-based underwriting, they were experiencing high portfolio loss rates and attempts to scale resulted in a spike in losses.

Additionally, through our deep-dive process, we discovered that credit risk assessment was only done for the first loan. Once the loan was approved, future loans required no further underwriting, which resulted in losses.

The Results

Estimated P&L uplift of creditX

31X ROI

Processing time per application

<1s

Increase in approval rates

+43%

Reduction in loss rates

-58%

Never Miss An Opportunity
We enabled a ‘Next Best Offer’ module for the customer to remove binary (accept or reject) decision-making and enable scaling. Instead, creditX will find variations in loan amount, tenure, interest and other criteria where offering a loan has an acceptable risk value, resulting in scaling of applications being approved.
Real-Time Underwriting
With creditX, each application is underwritten, whether it is a previous customer or not, thus ensuring an accurate risk assessment is done at the time of borrowing, rather than one-time in the past. This significantly reduced the # of losses from subsequent loans.

The Solution

Ensemble ML algorithms for higher predictive accuracy
Bias reduction algorithms incorporated into model development process
Cloud-based deployment with seamless integration with customer’s LOS system
Automation of the entire value chain, including instant loan approvals and underwriting

Results after 3 months

<1 week

to develop and deploy new credit models

8%

Increase in Approvals which reversed rejection rates

“A game-changer”

finbots.ai’s solution, creditX, is a game changer in credit modelling that supports our Bank’s digital transformation journey.

– Ti Eng Hui, CEO, Baiduri Bank

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Let us show you how finbots creditX can help your lending business with a no-obligation call and demo.

Book a demo

Let us show you how fnbots creditX can help your lending business with a no-obligation call and demo

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