26 April 2023, India: A digital lending platform MyShubhLife has partnered with digital credit infrastructure company FinBox to underwrite customers on its platform for its small ticket and on-demand loan products. MyShubhLife offers loans and overdraft facilities to small merchants, employee loans, and on-demand wages. FinBox will deploy its deep analytics expertise integrated with the account aggregator framework to assess risk parameters for their potential customers.
Majority of the population in India are new to credit or lack credit history, bank statements act as an alternative decision engine to assess loan eligibility of these customers. However, the traditional methods for fetching bank statements, like PDF upload or net banking, are cumbersome, prone to fraud, and potentially unsafe for the customers. FinBox’s BankConnect, with its Account Aggregator functionality, allows the platform to streamline the process of sharing bank statements, determine the veracity of the documents, and carry out accurate salary classification with customers consent.
“Underwriting for underserved segments like low-income individuals and even merchants can be tricky. It requires a fast and reliable product that generates a high-precision financial profile of the borrower without being cumbersome or too expensive. We at FinBox constantly strive to create economic equality by making credit access feasible for precisely these overlooked customer segments, and equip platforms like MyShubhLife to do this across the board and achieve scale,” said Rajat Deshpande, CEO of FinBox.
FinBox BankConnect’s Account Aggregator functionality is helping the platform to streamline the process of sharing bank statements, determining the veracity of the documents, and carrying out accurate salary classification with customers consent. The lending platform has so far successfully underwritten ~35,000 customers on its platform using FinBox BankConnect’s advanced bank statement pulling and parsing capabilities.
“Bank statements are essential to ensure the borrower’s ability to repay loans. Especially for our customers, most of whom are working in manufacturing and service industries and are new-to-credit without a credit score. The options of fetching bank statements like PDF upload or net-banking are cumbersome, prone to frauds, and potentially unsafe for the customers. Many times it results in incomplete statements without key information like the latest salary credits.
FinBox BankConnect, and especially its Account Aggregator functionality, allowed us to pull bank statements through a simple OTP-based method. For the customer it is safe, transparent, and easy to use. For the lender it is cost effective, tamper-proof and complete.” said Rahul Sekar CTO and Co-Founder, MyShubhLife.
MyShubhLife is disbursing loans amounting to ~Rs 1 lakh underwritten using FinBox BankConnect. So far, 25% of its users have opted to share their bank statements through the Account Aggregator network. As a result, the platform is experiencing a lower instance of fraud, as evidenced in FinBox’s case study on fraud elimination through the framework. FinBox BankConnect + AA reduces drop offs by ~2x when compared to traditional methods of bank statement sharing. It also reduces the instance of fraud by 45%.
