Federal Bank taps Kaleidofin to optimise microfinance loan portfolio

By Gloria Methri

Federal Bank, a private sector bank based in India has partnered with Kaleidofin Private Limited to implement its risk infrastructure product ‘ki view’ powered by ‘ki score’. This partnership will enable Federal Bank to enhance its risk assessment and management capabilities for its Microfinance loan portfolio and widen its outreach across the unbanked and underbanked customer segments in India.

Federal Bank continues to expand its financial inclusion efforts, leveraging technology to enhance service accessibility and scalability for a broader customer base. This partnership aims to strengthen Federal Bank’s ability to assess its microfinance customers’ financial health at the time of onboarding and improve portfolio monitoring capabilities throughout customer loan journeys. In addition, the envisioned solution will provide deeper insights for business expansion and improved risk management, particularly in the informal banking sector.

Commenting on the collaboration, Harsh Dugar, Executive Director of Federal Bank, said, “Kaleidofin’s risk infrastructure product is appropriately aligned with the bank’s above objectives. Its Risk Infrastructure solution product view will help us periodically assess customer financial health during onboarding and their loan journeys and also provide insights to the Bank to expand business and manage risk in the microfinance segment.”

Sucharita Mukherjee, CEO and Co-founder of Kaleidofin, added, “Our deep understanding of this segment, combined with Federal Bank’s focus on technology-driven financial inclusion, creates a powerful opportunity to drive meaningful impact. By leveraging our Risk Infra solution, ki view with ki score, we aim to enable responsible and data-driven lending, unlocking financial opportunities for millions, especially women entrepreneurs, across India.”

Established in 2017, Kaleidofin developed the ‘ki’ credit platform, combining a credit health assessment tool (ki score), middleware rails, risk management dashboard (ki view) and debt capital markets structuring capabilities to create tailored finance products for customers and small businesses. The solutions are designed to accelerate the flow of finance to inclusive originators from banks, mutual funds, pension funds, development financial institutions and other deep pools of capital.

The platform has unlocked debt capital of over $3.8 billion for 6 million customers and small enterprises working in the informal economy.