Enterslice’s Top Predictions for NBFC Software Trends in 2022

1. ENTERSLICE'S Top Predictions for NBFC Software Trends in 2022

2. NBFC Monthly Digest Enterslice's Top Predictions for NBFC Software Trends in 2022 Technology is evolving continuously since the beginning of the decade. All the major sectors are going through drastic changes. The same can be said for the financial industry as well, with the customer’s inclination towards the digital platforms a lot of institutions are eager to make the digital switch. Various changes could also be seen in the NBFC sector, newer trends and practices will be incorporated to popularise them. Here are a few predictions which are likely to happen in the future. 01 Rampant digitisation The recent trends show that NBFC’s digitisation is on the rise. This online presence is one of the key reasons for the increase in the NBFCs customer base compared to traditional banks. Digitisation enables the NBFCs to streamline their process, right from customer acquisition to catering to their needs. It will allow them to incorporate various other features such as document management systems, premium payment portals and customer care assistance. Digitisation of the NBFC is a gradual process and will ultimately take a few more years to establish itself in the online sphere. The major changes are expected in the industry like digitization of customer profile, which will enable the NBFCs to access their information quickly and save a lot of time, this time usually goes in vain for document acquisition and checking. The application for loans can also be accepted online. This method would also attract a lot of young customers to avail these facilities. For this a centralised database can be created to show relevant information about the borrower’s financial history and other key infromation. This would speed up the loan processing procedure and help in syncing data with 3rd parties. Digital lending software also helps everyone to be on the same page. The software will help the NBFCs to monitor customer problems easily and reduce risks. This also enables the brand to study analytics efficiently to improve their strategies. www.enterslice.com info@enterslice.com

3. NBFC Monthly Digest Integration of micro services 02 The industry is still paper-intensive, and a lot of sensitive data is present, and for that a lot of manual labour is involved in checking the authenticity of the documents. The NBFCs need to make extra efforts to digitise their operations. Once done, this would improve the customer experience and would also enable the lender to reduce the response time. But this change can only be done at a slow pace, and by incorporating microservices to the lender will enable them to digitise their NBFCs at their own pace. For example, NBFCs can integrate services such as CIBIL, NetBanking Connect, and PDF Statement Analyze to name a few. 03 Advance credit scoring system The conventional credit scoring system in India only focuses on the individuals’ credit history. It is believed that fintech might come up with an alternative scoring system, which will include other data models along with bank details. The additional data point shall include personal data like name, age, contact details, bank credit score. It shall also encompass the business details of the individual like cash flow/ bank account statements and POS transactions, and in order to study the customer better, it might also include psychometric tests and spending patterns. The extra data sets would help develop automated models, which would help with time and cost while giving out a loan. With this, the customer could get the loan with minimal effort. www.enterslice.com info@enterslice.com

4. NBFC Monthly Digest 04 Small ticket loans It is not easy to get loans in today’s world. The financial institutions do not even entertain the customer’s need for small loans because of high underwriting and lower profit margins. The young individuals do not have any financial history, and it gets even more difficult for them to get their loans approved. Therefore they end up borrowing money from their family and friends. In the new trends, the financial institutions are now investing in schemes where they offer buy now and pay later loans. These facilities are simple as the customer doesn’t have to fill out lengthy and cumbersome forms. These loans have zero % interest, and these can be repaid in instalments. Such loans and lending facilities are bound to increase in the years to come. 05 Collaboration & Partnerships It is not easy to get loans in today’s world. The financial institutions do not even entertain the customer’s need for small loans because of high underwriting and lower profit margins. The young individuals do not have any financial history, and it gets even more difficult for them to get their loans approved. Therefore they end up borrowing money from their family and friends. In the new trends, the financial institutions are now investing in schemes where they offer buy now and pay later loans. These facilities are simple as the customer doesn’t have to fill out lengthy and cumbersome forms. These loans have zero % interest, and these can be repaid in instalments. Such loans and lending facilities are bound to increase in the years to come. www.enterslice.com info@enterslice.com

5. NBFC Monthly Digest Self-service and omnichannel capabilities 06 The following forecast is that the lending sector will become fully automated. The borrowers would be able to avail the facilities without visiting the branch. The entire process from applying for the loan till receiving the funds, everything shall be done online with minimal interactions from the employees. This would also enable the staff to focus on other key operations. This shall also start omnichannel communication. The customer can use any type of portal like the app, website, text message or social media platforms. As the customer gets the liberty to operate through his will the lending business will become more customer-centric. 07Incorporation of machine learning and AI As we dwell further into this age and technology, machine learning and artificial intelligence have become inseparable in every industry. That fact lies true for the financial sector as well. The NBFCs are trying to leverage this technology to automate complex processes. This can help in checking for frauds, credit scoring and automated loan offer generation. 08Introducing blockchain technology As we dwell further into this age and technology, machine learning and artificial intelligence have become inseparable in every industry. That fact lies true for the financial sector as well. The NBFCs are trying to leverage this technology to automate complex processes. This can help in checking for frauds, credit scoring and automated loan offer generation. www.enterslice.com info@enterslice.com

6. NBFC Monthly Digest Better and improved customer- centric practice 09 This is a great time for lending businesses to introduce new simple and customer friendly interfaces. The software need not be old redundant with drop-down menus and lists. They can incorporate an interactive chatbot with AI capabilities so that the customers do not have to wait for the human representatives to be free to assist them. This would also reduce the employees’ workload, and they can intervene as and when required. 10 New business models NBFCs are making a shift from the traditional form of lending. As the virtual banking ecosystem cements its presence in the economy, NBFCs are bound to follow the pursuit. During the pandemic, we had seen that the only banks which had a tremendous online presence were the ones that gained traction. To be relevant, many traditional banks joined hands with neo banks to make their presence felt. A similar shift is expected from NBFCs, who’ll partner up with institutions that are already digitally capable so that they can render services to their customer base online. www.enterslice.com info@enterslice.com