Nucleus Software’s co-lending solution selected by Chola
By Edil Corneille
Lending and transaction banking solutions provider – Nucleus Software, announced that Cholamandalam Investment and Finance Company (Chola), the financial services arm of the Murugappa Group, has successfully gone live with Nucleus Software’s advanced co-lending solution.
The co-lending model is said to be a great opportunity for banks and NBFCs to draw upon each other’s strengths. It is expected to significantly bring down the cost of capital for Chola while helping partner banks to extend their reach to new customer segments, business areas and wherever Chola has a stronger presence.
Chola has launched a new co-lending business where the company is in the process of partnering with various banks to target higher value loan segments such as construction equipment finance and heavy commercial vehicle finance.
Ravindra Kundu (Executive Director, Cholamandalam Investment and Finance Company Limited) said, “Our mission at Chola is to enable our customers enter a better life and we continue to innovate to deliver this. We strongly believe our co-lending partnerships with banks will help us garner market share in segments where pricing has been a constraint. Co-lending is a new direction for Chola but we are confident that this will soon evolve into a very fruitful partnership model for Banks and NBFCs. Nucleus Software has been our trusted technology partner and their domain expertise ensured that we could roll out the co-lending business quickly, despite its complexity.”
Chola has been a Nucleus customer for more than a decade with FinnOne, the lending platform from Nucleus Software, powering the company’s end-to-end retail loan lifecycle. The advanced co-lending solution from Nucleus Software will help Chola process the co-lending applications much faster, assess credit risk through a robust framework and ensure compliance with the regulatory requirements.
Anurag Bhatia (SVP and Global Head Core business, Nucleus Software) said, “Chola enjoys a unique position in the industry today due to its strong focus on always putting customers first and reliance on an inherent value system. We are extremely proud of our long standing relationship with Chola and I am delighted that we continue to add more value to their business with co-lending being one of the recent initiatives. Every day 150,000 users at more than 80 financial institutions use our lending solutions to deliver outstanding services to millions of customers across India and we are confident that advanced digital technology will help the financial services industry recover faster from the impact of COVID-19.”
The solution ensures a seamless flow of information and eliminates the challenges posed by different business processes and diverse IT landscapes of multiple banks. With Nucleus’ solution, Chola will be able to scale their co-lending business quickly across partners and other lines of business.
IBSi Prime News
January 28, 2022
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