Bajaj Finance Ltd, India’s leading and most diversified NBFC, today shared their Digital-First approach by announcing a few ground breaking industry first initiatives set to revolutionize the lending industry. As the NBFC financing the widest set of outcomes, Bajaj Finance Ltd shared their first benchmarks towards completely digitizing the Finance experience for the consumers and industry alike.
Bringing the best of both worlds, Bajaj Finance Ltd launched Digital Activate – a unique partner model with offline retailers to facilitate mobile / digital product offering, similar to an E Commerce Model. For existing Bajaj Finance Ltd consumers, Digital Activate marries the convenience and on-the-go nature of online model with the speed of delivery of an offline model (4 hrs delivery commitment). Using this platform, retailers can display their product offerings on our B2C portal – Experia – to a pool of 76 lakh Bajaj Finance Ltd customers (identified basis propensity and risk analytics) in major cities across the country. Digital Activate not only helps customers pick and choose products at their convenience, but also gives them the flexibility to make the down payment at the location of their choice through cash/card, assures lowest down-payment and long tenor schemes – and all this with no paper work hassles.
Bajaj Finance Ltd also recently launched India’s first EMI finance App. The app gives consumers the freedom to apply for instant EMI finance anytime, anywhere. Adding to the ease of the application process, the app lets consumers to login using:
This eliminates the time consumed by pre-filling consumers’ basic information in the form.
Adding convenience and speed to personal loans, Bajaj Finance Ltd is also ramping up its another industry First initiative- Digital Grid TM, a real time, online approval capability for Salaried Personal Loan and Salaried Home Loans business. Traffic is generated for the website using various channels like SEO, SEM, performance marketing through affiliates and e-aggregators. Prospects apply for loans through online application and they get real-time in principle loan approvals basis their credentials.
Strengthening its commitment towards digitizing the lending experience, Bajaj Finance Ltd has also introduced tech oriented initiatives to enhance efficiency and reduce paperwork. The company’s Decision Support System (DSS), an automated Rule based underwriting in a decentralised manner to proprietary sales team / partners enabling lighter documentation and industry best turn-around time (eg 30 mins for Business Loans and 10 mins for Salaried Personal Loan). Again an industry first, this initiative has proved to be a DISRUPTION enabling capability for Bajaj Finance Ltd in the unsecured market.
Decision Support System is the first of its type initiative to automate the decision-making process with application of analytics on the available data base and capabilities attached to it. It also helps to provide a computer-generated loan underwriting decision. Using completed loan application information, the system retrieves relevant data, such as a borrower’s credit history, and arrives at a logic-based loan decision. The logic is built around exploiting on homogeneity of consumer behavior dividing them into various segments on the basis of risk associated with them. This algorithm, thus, helps the system further to take a decision on a loan application of a customer of similar specified segment.
Various benefits of DSS include:
- Reduced TAT
- Better risk control through invisible monitoring
- Reduced cost of documents/ verifications
- Improved productivity
- Transparency with the channel partners
- Enhanced customer proposition
Bajaj Finance Ltd is constantly striving to enhance customer experience in the lending space through technology. A few other initiatives include:
- Tele Binding – Unique capability of fulfilling loans / insurance over a telephone call without requiring any physical touch with the customer.
- Last mile connectivity through cloud platform at over 14,000 stores which enables more than 6 MM consumer underwriting in a year in an automated manner and further scalable.
- Centre of Excellence for Analytics across Sales, Prospects, Pricing, Risk, Marketing, Collections and Service
Bajaj Finance Ltd has also endeavoured towards a smoother and more convenient lending experience by inculcating consumer friendly support practices:
- One customer view enabling a 360 view across all products / relationships that the consumers have with the organisation
- Direct cash collection model for unbanked rural customers enabling lending to unbanked rural customers while ensuring strong portfolio performance
- EMI card franchise of over 3.5 million enabling customers to get approval in stores on a real time basis thus delivering experience of a credit / debit card
“As we progress towards the vision of Digital India, it is more crucial than ever to digitize the everyday transactions and experiences of our consumers, which requires organisations like us to challenge our existing offerings and processes every day. I am confident that with our Digital First approach we are strongly positioned to offer a differentiated proposition to our digitally savvy customers” says Manish Jain, Group Marketing Head, Bajaj Finance Ltd
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