The financial sector has been witnessing revolutionary growth due to the evolution of digitisation. Artificial Intelligence and Machine learning-powered systems are becoming an essential part of all financial institutions’ decision-making process. AI and ML-based products are significantly changing the digital lending landscape where startups and companies are leveraging AI to build better lending solutions while working alongside banks, NBFCs and other financial institutions.
Below, we look at the leading fintech startups that utilise AI and machine learning to accelerate the credit economy.
Capital Float
Capital Float was established in 2013 to aim to scale retail lending in India by offering flexible and short-term loans to SMEs. Since then, the company has developed various customised working capital finance products for traditionally segments like small retailers, franchisees and proprietors that have often been ignored due to high operation costs. Capital Float’s initial focus was bridging the MSME credit gap by using best-in-class technologies. The company has been providing loans that can be used to acquire inventory, optimise cash cycles and service new orders.
AI and ML models have played an integral role in the growth of the lending firm. Its small-ticket loans are fully automated and built using AI. The company uses AI-based algorithmics to generate users’ financial insights, which in turn helps the company offer customised credit facility as per the needs of the customer. Capital Float has also developed an in-house, industry-first early warning signal system using ML-based sophisticated collections stacks.
Valyu.ai
Valyu.ai is a Gurugram based FinTech startup founded by Rashoo Kame and Gaurav Kumar in April 2020. In a nation where nearly 70% of employees live paycheck to paycheck, Valyu has set out to reduce employee financial stress by providing employers with a holistic approach that addresses financial wellbeing issues at its core.
Valyu.ai is leveraging AI and Machine Learning to provide advanced salary solutions that can help companies alleviate their employees’ financial worries by providing them early access to their earnings & help companies create a financial care framework. Valyu.ai proposes to render 100% digital and automated experiences to all its clients and users. Their algorithm is based on AI and ML. The ML-based rules engine works 24×7 to monitor the risk profiles of their existing customers. The systems look at each customer individually and work to provide a product configuration that can meet the individual’s specific needs and circumstances.
NBFCs like Kudos Finance & Investments and Arthmate (Mamta Projects) have joined hands with the startup as financing partners. It has also tied up with People Strong as their channel partner. The company envisions reducing employees’ financial stress and ensuring their financial wel lbeing by providing quick and easy access to liquidity and advance salary in times of need. It currently services 10 lakh employees nationally and plans to increase its reach to 25 lakh employees from more than 1000 brands in the next two quarters. In the next five years, the company is targeting to disburse INR 2,500 crores. Employers can avail the Advance Salary solution for employees by registering with the Valyu.ai platform.
Jiffy.ai
Jiffy.ai, headquartered in California, was founded by Babu Sivadasan that is working to accelerate human-machine collaboration. The company has developed a no-code development platform for enterprise automation. Jiffy.ai’s revolutionary app-based intelligent automation platform turbo-charges productivity, transforms complex processes, and helps teams unleash their creativity and innovation.
Jiffy.ai uses AI-powered machine learning, cognitive processing and Natural Language Processing to provide an integrated automation experience. The automation removes mundane, error-prone tasks from the workforce, allowing employees to focus on higher-value strategic and innovative work. JIFFY.ai’s clients include Southwest Airlines, which has used the platform to automate its supply chain processes, revenue accounting, and operating groups. Since the pandemic began, JIFFY.ai has seen a lot of traction for their platform as large companies tried to transition to remote working seamlessly and needed automation to ensure that their central and back-office processes are being done promptly and accurately.
LendingKart
Lending Kart was founded in 2014 to address the various inefficiencies that mar the Micro, Small and Medium Enterprises’ lending space in India. The company has so far given out nearly 70k loans to more than 64k MSMEs. The company has set itself apart from other lenders in the market by developing a robust digital origination system and automated credit decisions based on AI. The company prides itself on acquiring and servicing MSME customers at India’s remotest places using its digital reach. Supply chain finance, term loans, line of credit are a few of the most popular products that can be availed from its website that is available in 7 vernacular languages. Lendingkart uses AI to predict accounts that are likely to go delinquent in advance. It has also built a state-of-the-art data infrastructure, which helps capture every interaction with the customer.
