Building a tech-first product in the BFSI space
The consumer lending space has seen a tremendous jump in the last 3–4 years. The advent of new fintech startups and NBFCs has been changing the face of the BFSI industry by introducing different business models and taking a tech-first approach towards solving the hassles of lending processes. The new-age companies are now driven by data and the latest technologies to give a phenomenal experience to their end-users compared to what traditional banking systems used to offer. The year 2020 was when this shift was felt the most — it was a time when banks were not working at their full capacity, and people needed money to live through difficult times during the global pandemic. It was at this point that Navi first entered the lending business. Let’s take a deep dive into how Navi is solving the challenges of consumer lending with its tech-first approach.
New v/s Traditional Approach
With Navi’s new interface, technology is impacting the entire loan processing experience for a consumer and also saving costs by cutting down on manual intervention.
How is Navi’s tech-first approach changing the consumer experience?
Navi’s customer research and data-driven approach have helped in building a new age consumer lending platform by leveraging the latest technologies and integration capabilities with different national agencies helping them automate most parts of the loan process. Here are few things that give Navi an edge:
A. Internal and external credit checks
Navi not only checks the credit bureau report (external credit check) of the consumer but also has its internal mechanism to rate the creditworthiness of the customer. The internal credit scoring enables Navi to get better clarity of the customer’s behavior and also prevents the consumer from making unnecessary loan enquiries. Navi leverages traditional, and non-traditional data like apps, device, and location data to understand the ability of a consumer to pay back the loan.
B. KYC process
Navi’s platform integrates with national agencies like UIDAI and CKYC to get the customer’s data. The data is matched with the customer’s selfie and details provided in the application with very high accuracy levels in an automated way. This helps the users to avoid printing and self-attesting those documents and brings down the time spent on documentation to just a few seconds.
C. Fraud Checks
Navi uses state-of-the-art technologies to curb down fraudulent attempts. Apart from multi-level security checks and digital due diligence, Navi also uses Video KYC and facial recognition technology to correctly identify the customer and avoid fraud.
D. Super-fast disbursement
Navi’s ideal time to process a loan ranges between 4–10 minutes depending on the users' data. The entire lending process starting from loan application to the disbursement is completely automated and is customer-driven. This eliminates the middlemen and improves the consumer experience drastically.
Taking the baton forward for the BFSI industry
“For times they are a changin” the famous Bob Dylan song stands true in the case of the BFSI industry. With new technologies and business models coming up, this sector is going through a major paradigm shift, and rightfully so. Navi’s tech-first approach by keeping the customer’s need in the epicenter would definitely be the way forward. Navi plans to evolve its platform to meet the changing needs of the customers while keeping strong security and hygiene checks. The team is working hard towards bringing down the lead time to just a few seconds. Navi is also moving aggressively towards the home loan segment where it plans to disburse loans in less than a week’s time.
We are confident that within 5 years Navi will be able to grant incomparable flexibility when it comes to loan approval and disbursal. The vision of Navi is to afford flexibility to everyone when it comes to personal and home loans, providing a seamless and hassle-free experience.
“There has been an immense jump in the way technology has evolved and become more focused on delivering a phenomenal customer experience. Navi takes a giant leap which is backed by data and learnings to take a tech-first approach to address the changing needs of the customers in the BFSI space. The obsession of our team towards solving the pain points of the users has been remarkable, where we bring in the best of technology and research to enhance the consumer-lending process by elevating the experience quotient and eliminating the need for manual intervention. ”
