Datacultr announces that it enabled NBFCs disburse INR 5 billion in loans in the past 12 months

By Edil Corneille

Datacultr announced today its involvement in helping NBFCs and telecom operators secure loans worth INR 5 billion since Apr 2019. The Indian startup provides a risk management and debt collections platform to financial institutions. The company apprised that a major chunk of the loan amount has been disbursed to ‘new-to-credit’ and high risk customers.

“The new-to-credit customer group has been ignored for a long time because of the high-risk profile of these borrowers. With our ML algorithms, we have been able to equip lending companies Banks,  NBFCs, Telecom Operators, and MFIs to securely lend to this underserved segment. Backed by our technology, these institutions are better positioned to lend to different segments whether it’s tier 1, 2 or tier 3, 4. Without any hesitation, they can expand the horizon of their financial services to every nook and corner of the country. This further enables them to bring financial inclusion in the economy,” says Neel Juriasingani, CEO and Co-founder, Datacultr.

In order to expand the horizon of financial inclusion, Datacultr has enabled financial service providers to recognize new business opportunities and work out coherent strategies. Its Machine learning algorithms are built to cater to the specific needs of the lender. These models help the lender to gauge a customer’s propensity to pay and build strategies to achieve specific objectives- delinquency prevention, default prevention or to improve agent productivity.

The company is focused on filling the credit gaps existing in the ecosystem. In a major milestone, Datacultr has mentioned that it has helped reduce the NPAs for financial institutions significantly.

By turning the borrower’s smartphone into virtual collateral for lending companies, Datacultr’s proprietary product provides the lender seamless access to the borrower throughout the tenure of the loan. The platform allows the lender to segment the customers based on their risk profile, financial understanding, and literacy levels, thereby helping them build empathetic communication plans that result in lower default rates and NPAs. The platform also makes borrowers aware that timely repayment helps in building their credit score which in turn can get them access to a bigger loan in the future.