Bajaj Finance moves core lending system to cloud with Pennant tech

By Gloria Methri

Bajaj Finance has migrated its core lending operations to a cloud-native platform provided by Pennant Technologies, marking a significant overhaul of its technology infrastructure.

The move aims to enhance the lender’s ability to manage its portfolio and streamline the administration of loan products. The new platform—Pennant’s pennApps Lending Factory—now supports the full lifecycle of over 50 million loan accounts across 27 lending products, covering both secured and unsecured segments such as consumer, commercial, and housing loans.

What began as a routine technology upgrade evolved into a large-scale replacement of Bajaj Finance’s legacy monolithic system. The company cited scalability, agility, and operational resilience as key factors driving the migration. With the cloud-native system in place, the firm is expected to gain greater flexibility in launching new products, improving turnaround times, and optimising backend operations.

The implementation was carried out over multiple phases and included integration across several internal and external systems. In India, non-bank lenders are increasingly modernising their IT infrastructure to keep pace with digital lending demands and heightened consumer expectations.

Pennant Technologies, headquartered in India, specialises in digital lending solutions for banks and NBFCs. Global analyst firms have recognised the firm’s platform for its modular architecture and adaptability across high-volume environments.

Speaking about the development, Mudit Mehrish, Chief Information Officer at Bajaj Finance, noted that the cloud-native architecture allows for faster innovation and enhanced customer service capabilities. Rajeev Jain, Vice Chairman, described the transition as aligned with the company’s long-term technology strategy.

Pradeep Varma, Managing Director at Pennant, described the project as one of the largest lending technology migrations undertaken in the country. The implementation included multiple integration touchpoints and was executed without reported disruptions to business operations.

The shift to cloud infrastructure is part of a broader trend among financial services providers in India, which is aiming to modernise legacy systems to keep pace with digital lending demands and evolving customer expectations.