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

  • Ensemble ML algorithms for higher predictive accuracy
  • Bias reduction algorithms incorporated into model development process
  • Cloud-based deployment with seamless integration with customer’s LOS system
  • Automation of the entire value chain, including instant loan approvals and underwriting
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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.

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“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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