With the economic activities coming to a standstill during the nationwide lockdown imposed to contain the spread of highly contagious Novel Coronavirus COVID-19, many people, especially those working with unorganised sectors, have lost their jobs. During this moment of crisis, with the prospect of getting some help by way of co-lending also eliminated due to the widespread job loss, it becomes even tougher for the workers.
Getting financial assistance from formal financial institutions either needs collateral security and/or credit history, which are missing for the millions of migrant workers, as they don’t borrow money from such institutions.
However, after getting displaced from their jobs, with no other sources of income and low or no savings, they are battling to survive and urgently need financial support.
In this situation, Non Banking Financial Companies (NBFCs) are actively working out for technology-based solutions to disburse small ticket size loans to people having no credit history.
One of the technologies that helps the NBFCs in getting equipped in this need of the hour is the Predictive Fraud Management and Collection Digitization solutions.
A Platform-as-a-Service(PaaS) provider, Datacultr is one of the companies, which is enabling NBFCs in India to meet new credit demands With its proprietary technology.
Using the proprietary technology of Datacultr, NBFCs may establish connection with its customers, using their mobiles devices throughout the tenure of the loan. The technology also allows the lenders to make data-driven behavioural interventions throughout the life-cycle and help them to communicate, remind, educate and in gradual impairment of the device experience, if a user defaults.
With effective collections solutions, the financial institutions may expand their books to ‘New to Credit’ across nooks and corners of the country as the financial sector will have a crucial role to play in helping the economy stabilise afterward by bringing in the required liquidity.