Alternative Data Underwriting Suite
At its core, lending is how well you manage and assess risk. Good risk assessment not only helps you collect debt, it helps you approve more customers, improves your margin, and enables you to improve the terms of credit for your end user.
When lenders underwrite a customer, they assess him along two parameters -
- Capability to Pay - We analyse users bank statement and look for his income, and other credit history. Based on thse we detemine users' capability to pay.
- Intent to Pay - We look for users engagement on Anchor app and previous repayment history. Based on this we detemine users intent to pay.
There are two ways of assessing credit-worthiness
- Traditional Underwriting based on the Credit History
- Alternate Data Underwriting
FinBox Alternate Data Underwriting suite:#
Our products DeviceConnect and BankConnect provides us the alternate data to underwrite.
What is a credit policy?#
A set of rules decided by a financial institution that measures the creditworthiness of a borrower and determines whether to approve the loan.
How we Credit Score NTC Customers#
NTC Customers do not have a credit history, therefore financial institutions are unable to underwrite them. They however own rich alternate data in the form of their digital footprint.
We get this alternate data using DeviceConnect (device data), BankConnect (Bank Statements), GST Data and also transaction data from our partners.
Risk based pricing#
A credit limit is set for users based on their credit history, bureau score, and credit score. We do not live large ticket loans to users with low credit score.
Fraud Management#
DeviceConnect helps lenders identify fraudulent applications earlier in the loan cycle, thereby optimizing the loan funnel and equalizing interest rates, i.e., lower interest rates for good borrowers and higher for high-risk ones.