BET is a proprietary tool developed by Shriram Housing Finance that uses advanced data analytics to predict the probability of bounces. The model has been developed after analyzing the month-on-month bounce trend on historical data. Bounce is influenced by different variables, like, customer profile, age, location, loan product, past repayment behaviour, rate of interest, Bureau score, vintage, etc. The analysis resulted in identifying variables which are most strongly and consistently correlated with the Bounce %. BET is primarily based on two variables, the vintage of the loan & past delinquencies seen in these vintages which play a significant role in the borrower’s repayment behaviour.
Commenting on the award Ravi Subramanian, MD & CEO of Shriram Housing Finance said, “We are excited about this recognition. By utilizing the functions enabled by BET, Shriram has implemented a more organized approach to task allocation, resulting in optimized efforts and efficient processes. It’s an industry-first tool and this recognition is a testament of excellence.”
The organization widely uses the tool, which provides valuable insights to management on whether the number of EMI bounces will increase, decrease, or remain stable in the coming months. It also predicts how much EMI bounces will change compared to previous months.
“We’re proud to say that the Bounce Prediction Tool has been a true BET for the company every month,” added Ravi Subramanian.
The India Credit Risk Management Summit & Awards is a prestigious event in the BFSI industry that recognizes the most innovative risk management practices and solutions. SHFL’s BET stood out among the many applications received for the Best Risk Initiative of the Year award.