FinBox, a credit infrastructure provider, has developed an AI-powered credit decisioning platform called Sentinel that has led to streamlined loan processing, enhanced efficiencies in the lending process, and improved risk monitoring.
IIFL, a leading Non-Banking Financial Company (NBFC) has adopted Sentinel, to disburse personal and business loans at scale. The integration of Sentinel helped IIFL reduce turnaround time by over 95%, increase reach by an impressive 352%, and expand the number of lending policies from 64 to 177 as part of risk diversification.
The partnership has enabled IIFL to
Streamline loan processing and enhance efficiencies in the lending process
Strengthen risk monitoring
Reduce turnaround time to deploy policies by over 95% ,
Increase reach by over 352%
Expand the number of lending policies from 64 to 177 as part of risk diversification
Arihant Jain, Head Product, Data Science and Analytics, at IIFL Finance said, “Sentinel serves as both a business rules engine and a credit risk management platform, empowering risk experts to make timely decisions. This capability is especially crucial in todays landscape, as NBFCs grapple with rising delinquency rates and compliance challenges from complex digital lending partnerships.”
Sentinel’s AI/ML capabilities are designed to help banks and NBFCs understand and respond to their customers ever-changing needs with precision, speed, and efficiency. Besides decision automation, its risk analytics stack informs risk officers of the best way to engage with each customer and drive value in four areas: boost customer acquisition, reduce operating costs, mitigate credit risk, and increase customer lifetime value.
These benefits translate to the end customers (including new-to-credit borrowers) in the form of seamless experiences and customised loan offers at competitive rates.
Mehekka Oberoi, Director of IIFL Open Neobank said, “Given the size and complexity of our digital lending operations, the transition from a hard-coded rules engine to a centralised system of rules management was inevitable. However, the real challenge lay in selecting the right decision management software from a market that is rapidly crowding. Yet, our choice was easy because Sentinel isn’t another run-of-the-mill BPM software, it’s a comprehensive lending system in itself.”
When asked about the rationale behind developing such a product, here’s what Rajat Deshpande, the CEO and Co-founder of FinBox had to say, “At a time when banks and NBFCs are facing heightened risk and complexity from outsourced services and third-party relationships – a solution that helps them develop new risk management capabilities and implement risk responses swiftly is the need of the hour. For sustainable lender-fintech partnerships, we believe that the lender should feel equally equipped to effect changes and drive business decisions. A solution such as Sentinel incentivises collaboration between lenders and platforms as both the stakeholders are equally empowered by technology to make the most of digitalisation.”
At the core of IIFL-FinBox partnership is the shared aspiration to achieve financial inclusion-focused loan growth. Sentinel leverages the latest advancements in AI/ML to help strike a balance between pursuing growth opportunities and ensuring effective risk management – which is crucial to sustainability and stability of lending operations.
About FinBox : FinBox is a rapidly scaling fintech start-up based in Bangalore that provides embedded finance infrastructure and digital lending solutions to start-ups and enterprises across the globe. The FinBox suite works across alternate data scoring, embedded credit line, financial data integration, and analysis.
About IIFL : IIFL Finance Limited is one of the leading players in the financial services space in India. Together with its subsidiaries – IIFL Home Finance Limited, IIFL Samasta Finance Limited (Formerly known as Samasta Microfinance Limited) and IIFL Open Fintech Private Limited, it provides a diverse range of loans and mortgages.
