NEW DELHI, 23 December 2021 / PRNewswire / – Like India continues to evolve and grow as an economy, financial inclusion has become extremely important to the country. It involves providing affordable and accessible financial services to a wider range of people across the social spectrum. This is exactly what new age fintech lenders like SimplyCash have been able to accomplish. Leveraging cutting-edge technology, instant personal loan applications like SimplyCash have been able to address the issues consumers face throughout the loan value chain by providing easier access to credit, faster decisions and faster credit.
In the process, digital lending has become a catalyst for india financial inclusion objective.
How digital lending is changing the lending landscape in India
One of the new technology-driven lenders, SimplyCash (powered by Hero FinCorp) focuses on using cutting edge technology to create a seamless user experience and improve operational efficiency. Here’s how technology is making a difference for these lenders and helping drive digital lending.
1. Use of alternative credit decision models that ease the crisis
Digital lenders like SimplyCash rely on Alternative Credit Decision Models (ACDs) that allow them to draw on non-traditional credit data such as buying behavior, transaction preferences, credit analysis social and geographic data, etc. The ACD approach not only assists them in assessing risk, but also simplifies the underwriting process by eliminating the need for physical documentation.
2. Use of advanced technologies and tools for better recovery
By leveraging artificial intelligence and machine learning in their downstream lending activities, new age lenders are improving their collection and management techniques. SimplyCash, for example, uses technology to help minimize EMI bounce rates by ensuring customers receive regular email and text reminders.
3. Minimal online customer interaction
Since the digital fingerprint and third-party data is used for verification and eligibility criteria (major drop-off points that are critical to the traditional lending process), interaction with the customer is minimal. It also lowers operating costs for the lender.
4. Use of simple and user-friendly digital platforms
The whole process takes place through simple and user-friendly user interfaces. Take for example the SimplyCash app, which is designed to improve the total customer experience while maintaining transparency.
Extended reach and more power for consumers
The power of digital lending can be easily seen through the SimplyCash app. Like India faced with the brunt of the COVID-19 pandemic and people were desperate for instant personal loans for home improvement, business expansion, education and other financial emergencies, SimplyCash delivered quickly. Its cutting-edge technological platform has also enabled it to reach the most remote regions of India, where traditional lenders are reluctant to lend.
As the credit landscape evolves in India, thanks to tech-driven players like SimplyCash, it is also expected to reduce the credit spread by India. To put things in perspective, india the contribution of household debt to GDP is currently only 12.4% (according to ceicdata.com), much lower than that of its neighbor China (62.1%), or say Japan (65.2%), Malaysia (93.2%) or elsewhere the United Kingdom (96.6%).
“We have managed to disburse Rs 200 crores in 10 months. Due to technology, we were able to lend to various groups of people deserving of credit who did not have quick access to money. This is the goal of SimplyCash: to make credit accessible to all deserving Indians who have been underserved so far, âsays Prashant Chopra, National Director, Digital, Hero FinCorp.
Powered by Hero FinCorp, SimplyCash is an instant personal loan application that offers cash loans of up to 150,000 for employees and the self-employed. Driven by technology and fueled by innovation, the SimplyCash mobile app is available on Android play stores such as Google Play Store, Samsung Store, Xiaomi Store, and more. With a widespread presence, SimplyCash currently offers its services in over 74 major locations in India. This is a registered trademark and loan product offered, managed and operated by Hero FinCorp.
About Hero FinCorp
Finances made easy. Three simple words that motivate Hero FinCorp Limited, India’s next generation ultralight credit champion. It was incorporated in December 1991 as Hero Honda FinLease Limited. In March 2021, Hero FinCorp at consolidated level reached assets under management of â¹ 27,464 crore.