SUCCESS STORY
Agri-Lender Generates 31X ROI using creditX enabled credit risk scoring
High accuracy enabled 58% lower bad rates and 43% more applications
One of India’s largest Agri-Enterprises disbursing Agri & MSME loans to farmers and companies
Country: India
Company Size: 500 – 1,000
Type: Agri-Enterprise, Retail Lending, SME Lending
Products: Agri Loans, SME Loans
Results after 3 months
<1 week
to develop and deploy new credit models
8%
Increase in Approvals which reversed rejection rates
The Challenge
The Agri Enterprise was struggling to scale. With basic rules-based underwriting, they were experiencing high portfolio loss rates and attempts to scale resulted in a spike in losses.
Additionally, through our deep-dive process, we discovered that credit risk assessment was only done for the first loan. Once the loan was approved, future loans required no further underwriting, which resulted in losses.
The Solution — creditX
The Results
31X ROI
Estimated P&L uplift of creditX
<1s
Processing time per application
+43%
Increase in approval rates
-58%
Reduction in loss rates
Never Miss An Opportunity
We enabled a ‘Next Best Offer’ module for the customer to remove binary (accept or reject) decision-making and enable scaling. Instead, creditX will find variations in loan amount, tenure, interest and other criteria where offering a loan has an acceptable risk value, resulting in scaling of applications being approved.
Real-Time Underwriting
With creditX, each application is underwritten, whether it is a previous customer or not, thus ensuring an accurate risk assessment is done at the time of borrowing, rather than one-time in the past. This significantly reduced the # of losses from subsequent loans.
“A game-changer”
finbots.ai’s solution, creditX, is a game changer in credit modelling that supports our Bank’s digital transformation journey.
– Ti Eng Hui, CEO, Baiduri Bank
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