Financial institutions across the globe are rapidly adopting a technology-led approach. Digital enablers are helping them enhance their reach and achieve better financial inclusion for the underserved segments of the economy.
Today, technology-enabled digital lending channels, such as internet sites, ecommerce platforms, fintech companies & lending apps, are widely used to select and deliver loan products to the customers; for instance, automated scorecards to approve/reject home loans. They come with numerous advantages, like short turn-around times and wider reach, thereby helping financial institutions to rapidly expand the book-size while keeping the cost of acquisition low.
This has led to a surge in digital transactions, calling for changes to the way we approach credit risk today