Category: Banking

Welcome to our specialized banking category, an expertly curated space where we delve into the exciting world of digital transformation sweeping across the banking industry. Our insightful articles explore a multitude of facets that are actively shaping the future of banking, from the disruptive force of cutting-edge technologies to the shifting paradigms of customer expectations.

As the terrain of the sector undergoes continuous evolution, it becomes increasingly crucial for industry professionals, enthusiasts, and observers to keep abreast of the latest developments and trends. Our in-depth articles serve as a resource, providing valuable insights into how traditional banking institutions are navigating the transition to the digital age, and how emerging fintech companies are spearheading innovative solutions that are redefining the industry’s contours.

Our coverage encompasses a wide array of topics, from the convenience and the ubiquity of digital payments to the transformative impact of regulatory technology and the paramount importance of data security. This comprehensive exploration offers our readers a panoramic view of the digital banking ecosystem. Our overarching objective is to equip our readers with a nuanced understanding of the challenges that lie ahead, as well as the opportunities that digital transformation brings to the fore.

So, immerse yourself in our curated content, enrich your knowledge, spark meaningful conversations, and stay ahead of the curve in this digital banking era. Join us in exploring the captivating world of this sector where the only constant is change. Welcome to the future of banking, with us!

Lowering The Lending Daze With APIs- A Detailed Look With Top 4 Benefits Of Open API Infrastructure

Posted on | by Signzian

Nearly all organizations now depend on Application Programming Interface (API) technology, and the lending industry is no exception. API technology is a software platform that enables two programs to communicate with one another.

Forbes reports that 85% of companies view web APIs and API-based integration as essential to their corporate strategy and long-term success. Lenders may offer better products, more advantageous loan conditions, and a more effective, seamless customer experience by connecting to third-party data suppliers and aggregators via an open API infrastructure. Intelligent lenders are utilizing this new wave of innovation focused on shared services, allowing them to maintain their emphasis on their core loan goods while using the most recent technological advancements.

However, many firms can feel lost in the jungle and struggle to comprehend how to approach an open API strategy. This does not have to be the situation. You can find success by using the advice and techniques in this blog post.

Why Does Lending Need APIs?

In response to market realities, lenders must act swiftly to present enticing offers to borrowers. Being connected to a network of integrators and providers of third-party data is the finest and most effective way to do this. Simply said, lenders will fall behind if they don’t link to a larger digital ecosystem. Additionally, forward-thinking lenders are learning more about APIs and how they could change the way they provide credit.

Consider the fantastic experiences you have in your life, thanks to app-based platforms. Have you ever used Facebook to log into a service or application, for example? This illustration shows the simplicity of service your loan business can offer its clients by utilizing an open API infrastructure.

The Benefits Of An Open API Infrastructure In Lending

Lenders can change how they provide digital goods and services to all stakeholders, including customers, partners, and staff, by exposing their businesses to APIs and shedding the constraints of their traditional systems.They can essentially transform lending. Among the main advantages are:

  • Accelerated innovation and increased scale- Avoid being overtaken by the competition by having access to reliable partners and data sources that can hasten the release of new goods and services.
  • Boost revenue- by targeting new consumer categories across a more comprehensive geographic range without adding costs or affecting profitability.
  • Integrating credit report and bureau data- into your core lending platform can eliminate manual data entry, reduce margins of error, and enhance laser-focused underwriting. This is by removing the need for paperwork and numerous layers of human approval, which adds time to the underwriting process.
  • Integration of background data and applications- is made more effortless. Data synchronization to and from your back-end systems can be more straightforward if you use standard API services to scale enterprise connectivity and follow best security practices.

However, each lender is distinct and presents borrowers with a different selling proposition. Knowing what functions best for your company is crucial. There isn’t a single universal API strategy. Understand your goals and how to collaborate with the appropriate data suppliers and other third parties to achieve what’s best for you.

Top Tips For Making Your API Strategy A Success

Organizations must take a logical, proven approach to the journey to build API products and participate in the API economy. Steps to take include:

  • Developing your digital strategy- Lack of a compelling digital design could spell doom in an environment of intense competition and virtually daily introduction of new technology. Understanding what you want to achieve with digital technology is crucial and ensuring that it ties in with larger business goals.
  • Align and unite across business units and culture – Ensure everyone is on board and aware of the advantages and how they relate to the company’s goals. You need the entire executive team to back your API strategy; this is not simply the CIO’s or the IT department’s job. There will be a paradigm shift with this for many organizations.
  • Engage a comprehensive digital ecosystem: Senior executives are responsible for expanding the company’s consumer base and enhancing internal procedures. However, they are unable to accomplish this by carrying on as usual. Businesses may identify and seize these opportunities by connecting to external data sources. By putting together (either buying or building) a complete lifecycle API management platform/tools and establishing an API architecture, try to build and nurture your API community. Be sure to implement security best practices.

The Bottomline

Technology, in all its essence, is transforming the lending ecosystem. APIs are the current phase of this. You need to adapt to this amalgamating technology to keep your enterprise in the race. It is impossible to do this alone, so you need a good resource provider.

You can enhance your venture’s processes with Signzy’s resources, including verification and collection APIs designed explicitly for lending and loaning industries. Our products are AI-driven yet do not require any coding. We can find apt solutions for your issues with a fully customizable quiver of options. Check it out here.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com.

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

 

Business Growth

Top 10 Must Have API Qualities For Business Growth

Posted on | by Signzian

According to MarketsandMarkets, the API management sector is projected to be worth $5.1 billion by 2023, at a CAGR of 32.9%. The lion’s share of this comes from the investment and financial technology sectors. Although the number of transactions might be relatively low, the amounts transferred are rather high here. That’s where API is revolutionizing the ecosystem.

APIs have long been hailed as the foundation for revolutionizing financial technology in the investment sector. However, not all APIs are made equal, despite their ability to alter how investment data is maintained and moved within the fund sector. Some qualities are essential when looking at an API-first solution for investment management:

1) Security In The Investment Sector

Any modern API will include strong validation, encrypted transmission, and robust authentication (at a bare minimum). In addition, the sensitive customer data that is virtually always stored by investment platforms (such as names, addresses, portfolio holdings, and national insurance numbers) needs to be protected. Errors are unacceptable when it comes to safeguarding your clients’ data.

2) Low Entry Barrier

New API users ought to have a low entrance barrier. We discover that a standard like OpenAPI (also known as Swagger) gives developers a comfortable experience. Shortening deployment times will also be assisted by accessing Software Development Kits (SDKs). A solid SDK will handle the most mundane activities, allowing users to tackle their business growth problems immediately (e.g., building a new asset allocation algorithm or integrating with a new custodian).

3) Apt Documentation

Any API you use should be thoroughly documented and include numerous examples. Both the technical elements of the API and use-cases should be covered in the documentation. For instance, “How do I execute a valuation with a custom price source?” or “What are the minimal field names and data types required to update a trade?”

4) Logical Building Blocks With Synergy

You would want logical and practical abstractions and resources represented via API endpoints. For instance, a different Instruments and Holdings endpoint will be available on practically all investment management platforms. These endpoints ought to operate in unison (we call this composability). For example, you should be able to take the details of the instruments from the Holdings response and use these to call for more information about the instruments from the Instruments endpoint.

5) Adopt Premium Standards

A high-quality API should adhere to internationally accepted standards. The onboarding process for new users is improved when familiar standards are used (and applications). An illustration of this is the REST architectural style, which uses the HTTP standard verbs (GET, POST, etc.). As a result, developers don’t need to carefully read the system documentation to realize that a “PUT holdings” request replaces (rather than changes) all of the holdings in your portfolio. Industry standards can also aid in processing API data by applications and machinery. For instance, we prefer JSON because it is supported by rich libraries in all essential programming languages.

6) Consistent And Persistent Implementation

A top-notch API should apply naming conventions and standard features uniformly across all endpoints. For instance, a Holdings endpoint and a Transactions endpoint might need to deliver a reference to an exclusive instrument in an attribute. To provide the best user experience, that attribute should have the same name (perhaps something like InstrumentId) in both endpoints. Standard features across all APIs should also be consistent. For example, do your APIs have any filtering functionality? If so, the operators and syntax used in those filtering statements across all endpoints should be the same.

After determining the mandatory features in an API-first platform, let’s now look at some of how an API-first solution can give you improved access to your investment data.

7) External Systems Integration

By offering a “common language” for these systems to communicate, an API-first platform should enable smooth integration between various systems in your financial technology stack. For instance, an Order Management System (OMS) and a Portfolio Management System will often have a continuous data flow between investment managers (PMS). Therefore, it is possible to guarantee that both systems are constantly updated with accurate data by using an API-first platform as the foundational integration layer. To ensure that your portfolio managers are constantly making decisions based on the best information, for instance, you might want orders raised from the PMS to reach the OMS promptly and for the PMS to be updated with transactions from the OMS in real-time.

8) Data Access Control

Granular entitlements that are simple to administer will be present on an excellent API-first platform, giving administrators complete control over the data that particular users and groups are permitted to access. With everyone having simple access to the information they require but no one having access to data they shouldn’t, you will be able to achieve the ideal data entitlement.

9) Rapid Data Onboarding

For a client, do you need to onboard a new ESG data set? Or have your data strategists found any further information that could be mined for alpha? Your teams will be able to quickly extract the most value possible from new data if you have a reliable pipeline that pumps it into your ecosystem and has an intuitive API with a flexible data model. This is the evolution in financial technology we seek for business growth.

10) Transparency For End-Users In The Development Process

API suppliers can easily involve customers in the development process thanks to the microservice model of API-first platforms, where loosely connected services are delivered and maintained individually. In addition, users can test new functionality early and take part in the feedback loop during early revisions of an API endpoint thanks to the separation of endpoints into “Production,” “Beta,” and “Experimental.”

Why Choosing An API Provider is Crucial

As the sector deals primarily with large amounts of money, there is no space for even the slightest errors. Mostly these errors are human-made. Thus one of the prerequisites you can have while transforming your processes is to automate the processes with a reliable decision engine. This should be done without compromising the investor’s experience or their safety.

With Signzy’s No-code AI-driven decision engine integrated API that’s fully customizable, you will get the apt resources you seek. In addition, we have a dedicated collection of Investment APIs that includes investor onboarding features, verification processes, and much more. Check it out here.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com.

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

 

Employment Verification- Why It’s Primal For Lending?

Posted on | by Signzian

The 2021 Federal Trade Commission (FTC) report states that almost 30% of all financial fraud complaints in the US involved identity theft. This represents a 50% increase from 2020. Among these, loan application fraud was one of the primary sources of complaints, and the identity of the fraudulent buyers and borrowers were usually fake or stolen.

Conventionally, the loaning process for housing has been tedious for both the lender and the applicant. Now add a bit of high fraudulence risk into the mix, and voila, you have the recipe for a potential disaster, a disaster that needs to be avoided. That’s why when the loan application process begins, there is hectic paperwork and back and forth with your lender. The whole deal of underwriting is an intense procedure and includes methods for everyone involved.

One major step in the underwriting process is efficient employment verification. The lender needs to do their due diligence and validate that you are and have been employed to ensure they’re considering all of the user’s income sources. This confirms that the potential borrower can cover their down payment, closing costs, and monthly repayment.

Why is employment verification necessary in lending?

While it seems like just another box to check in the lending process, lenders must verify your employment and all income information to confirm your capability to make your monthly mortgage payment and reduce their risk of giving you the money.

How do mortgage lenders verify their borrowers?

Mortgage lenders verify employment by contacting the concerned borrower’s employer directly. First, they review the borrower’s recent income documentation. These can include an employment verification letter and a recent pay stub. Sometimes it can also have something else that proves an employment history and verifies the income.

Employee verification can take days to weeks if your lender works off of physical forms. However, the process could take mere hours if you work with a lender who requests payroll access for any underwriting.

Are you looking to save time in your mortgage processes? Then, check out Signzy’s resources to innovate and improve them.

When is the employment verification process done for mortgages?

Some lenders verify employment multiple times during the mortgage process:

  • 1)Pre-approval

Working with a lender before you have your dream house picked out in a competitive housing market and learning what kind of mortgage you would qualify for can be a good idea. When you get the preapproval, you may be required to submit information or documents such as bank statements and salary slips to prove your income, the funds you’re using to get the loan, and a credit check.

  • 2)Verifications during the underwriting

Each lender will verify income and employment checks underwriting a mortgage according to their timeline. Generally, it is done anywhere from a few days to a few weeks before your loan is cleared to close. It might be performed again if the timeline to complete was extended to confirm that nothing has altered. 

Experts recommend not making career changes during the underwriting process, finishing another loan payment to avoid impacting your credit score, or getting a new credit card.

To Conclude

Income and employment verifications are a critical part of the home loan process. Still, it can be difficult for those without access to an HR resource to handle the particular paperwork; even when an HR department exists to submit the documentation to lenders, paper forms and conventional PDFs slow down the whole lending process. That’s why the lender’s responsibility is to make the process more convenient and easy.

If you want to make the verification processes easy, then you should avail the services of a good fintech provider. In a world with so many choices, finding the right one is difficult, especially with so many bad options. At Signzy, we ensure that the fintech solution we get you is not manufactured from a blueprint but rather created according to your needs. Our AI-driven API resources help us to customize our way through your problems.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com.

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

Garnering the Gig Economy- 3 Ways The Fintech Industry Leverages AI To Enhance The Gig Workforce

Posted on | by Signzian

In 2021, there were nearly 23.9 million independent/gig workers comprising the Gig economy in the United States, an increase from 12.9 million in 2017, according to the 2022 Gig Payments Report. The study further illuminates that 85% of respondents have increased their gig work, and 58% cited inflation as their primary reason for this. The number of workers is still growing with rising inflation, pandemic-era job losses, and the work-life balance mindset.

Conventional financial services are not tailored for the needs of gig workers. This is because many banks focus more on premium and higher-income customers. Additionally, they lack access to data about the financial behaviors of gig workers, who often have to keep their financial activity unregistered. Their paychecks often fluctuate with jobs coming and going from one month to the next. This lack of a steady income means these workers struggle to access investment accounts, loans, insurance, and other financial products. They are also likely to face difficulties paying for unexpected emergencies, such as costly medical treatments.

For fintech industry companies, an opportunity awaits. Many financial technology ventures have recognized these workers as potential customers who are underserved by the traditional banks and are now playing a pivotal role in powering the Gig economy. We at Signzy like to stay ahead of the curve and have been focusing on providing financial technology services that are easy to use without compromising quality. Let’s see how all this has helped the growing sector.

AI From Fintech Industry Companies For Gig economy

Gig Payments Report states that gig workers prioritize speedy service while receiving payments. For example, 70% prefer to receive their payment on the same day they work while 39% choose immediately after each job. Only 29% prefer it at the end of each day. Additionally, with rising inflation impacting work and personal expenses for 57% of respondents, timely access to funds is crucial for their financial needs.

With a gargantuan gig economy workforce looking to financial sector to manage their finances, there are bound to be support-related queries that follow. So how can the support teams of financial technology companies rise to offer the much-needed support, especially that which aligns with the preferences and expectations of their customers today? Herein lies the chance for these companies to immediately incorporate modern AI-powered support systems into their technology stacks to resolve all customer issues.

Meeting Customers Where They Are

Not bound to any location, gig workers are constantly moving. AI-powered solutions provide resolutions across channels through email, messaging, chat, SMS, and voice for support when they require it the most. Most of Signzy’s API resources enable the institutions with remote-friendly solutions. This can be for onboarding, KYC, etc.

Moreover, they are constantly busy, and gig work is often a side hustle that supplements their income (Branch and Marqeta’s report defines only 27% rely on gig work as their major source of income). By leveraging AI, fintech companies can offer proactive customer service – addressing a customer’s issue before they encounter one- by detecting or anticipating the problem in advance and extending the necessary support to resolve it. Some of the use cases are:

  • Warning a customer that their bill is soon due.
  • Reminding customers to transfer balances from one account to another.
  • Alerting customers that there may be an improved savings account option than their current one.

Such proactive, preemptive, and predictive support is much needed for the workforce. We ensure that you get it at Signzy.

Fast, Immediate Solutions

Terraforming the customer support landscape, AI-powered chatbots for customer service have become significantly efficient by delivering personalized solutions immediately and automatically for a truly effortless experience. In addition, AI can automate resolutions to high-volume, repeatable tickets like paying monthly bills and resetting passwords, freeing up human agents to focus on the more complex issues and decreasing resolution times. The result? Faster and more consistent customer support, and less fielding of common and repetitive problems for the support team.

For example, suppose a customer has doubts about the loan application process. In that case, a chatbot could efficiently provide a relevant article from a company’s knowledge base that covers this topic in detail. Furthermore, if it is connected to the correct backend systems, it can even provide the real-time status of applications.

AI-driven solutions enable fintech companies to improve their support for customers’ needs. This includes access to 24/7 support outside of standard working hours when support teams are unavailable to respond to queries. This also reduces the cost of keeping a human support team on standby in case of an unexpected ticket spike. In addition, this type of support is ideal for gig workers who work irregular schedules but still need support access from their financial service provider. One of the emphasized areas Signzy focuses on is this kind of support for our clients. We ensure to take care of everyone.

What Signzy Is Adding To The Growth

Signzy has been in the fintech industry for nearly a decade now. We began with the idea of having fully customizable AI-driven automated solutions for all onboarding and KYC problems. But since its inception, we have kept in mind the further horizons we would explore. The time is nigh, and we are helping out in all the industries we can. With the Gig economy, we believe our services can provide a strong foothold in ensuring the right customers for all financial institutions. We make sure to make it simple for everyone.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com.

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

$5 Trillion

Fintech’s Role in India’s $5 Trillion Ambition

Posted on | by Signzian

As India sets its sights on achieving a $5 trillion economy by 2026, the fintech industry emerges as a pivotal player in this grand vision. Combining the power of technology with finance, fintech is transforming traditional banking, facilitating seamless digital transactions, and bridging the financial inclusion gap in the country. With its ability to offer innovative solutions, from digital payments to alternative lending, fintech is not just modernizing the financial landscape but also catalyzing economic growth by driving investments, creating jobs, and enhancing consumer experiences.

In 2019 Prime Minister Narendra Modi envisioned making India a titan with a USD 5 trillion economy and a global powerhouse by 2024-25. With this, India would be the third largest economy in the world with every financial company powering the change.

Although almost all industries have contributed to India’s growth in the past decade, financial technology significantly impacts achieving the goal. A major factor for this is the relentless adoption of automation in the sector.

India’s digital journey has been a unique one. It probably started with the Digital India campaign in 2015, which aimed to promote greater financial inclusion – India’s population has grown to over 1.4 billion, and significant steps have been taken toward digitization.

The Government’s Role In The Fintech Industry

The government-initiated campaign had three main components: 

  • Digital Infrastructure Creation
  • Digital Delivery of Services
  • Digital Literacy

To a large degree, the movement empowered the people and continues to impact the country’s growth positively. 

Today, we have the following:

  • Aadhaar ID system
  • Unified Payments Interface (UPI)
  • Enhanced internet connectivity
  • A nation with a large portion of digital natives
  • Some of the fastest-growing and most successful fintech industry startups

With the digital revolution that has been happening, people are getting greater and easier access to financial services. This fundamentally changes consumers’ financial behavior from a preference for cash to e-wallets and UPI. UPI is one of the significant driving factors in India that has gotten consumers to use payment services on their mobile phones. Changing payment habits are driving changes in banking and financial services in India.

Financial Companies Into E-Commerce

As e-commerce took off in India, with companies like Amazon and other e-commerce players entering the market, consumers transitioned to digital payments like Google Pay, Paytm, QR payments, etc.

They also became habituated to using digital authentication methods from:

Some of these were introduced out of necessity to cater to consumers in cities with varying internet access and mobile penetration levels.

As account opening modes transform from in-person transactions to in-person remote events, the question, ‘is the client legitimate?’ becomes difficult to answer. Moreover, with the growth of digital businesses comes the growth of fraud and risk. So it’s critical for banks, financial services providers, and non-financial banking institutions (NBFCs) to ensure a secure verification process from the point of onboarding.

Interestingly, over the last few years, video/online KYC has revolutionalized the KYC process between banks and consumers, whether it happens in person or remotely. In addition, consumers have also become habituated to smartphone verification as it becomes part of an account opening process or ongoing banking transactions.

Fintech For Five Trillion- Together, We Shall

The payments revolution also drives other shifts within the ecosystem, particularly in the lending industry, as banking and financial services move away from conventional operating methods. We are seeing more “openness” from the overall digitization of products, services, and offerings to API unification across some of the larger banks in India. Banks also collaborate with fintech industry startups to bring some innovative products to life.

These collaborative projects, along with new initiatives by the government, including the open banking drive, have propelled India to the forefront. 

At the organization level, high-growth companies need working capital to ensure their innovative ideas and services can launch successfully. These companies may be smaller compared to typical multinational corporations. If they are being evaluated using traditional financial instruments used by banks and NBFCs, they would be less likely to get approval for the loans required because several data points wouldn’t be available. As part of the government’s vision to bring the Indian population into the digital age, IndiaStack and other vital frameworks help make some of these data points available.

On the consumer level, with the amount of transactional data available as digital activity increases, data privacy and security will be of concern. For example, how risk profiles are being built from payment transaction data, what is in payment transaction data, how fraud is being managed, etc. – these topics that we often hear from consumers, banks, and the fintech industry.

Fintechs Are Improving 

Although Fintech has seen considerable developments in the past few years, creating a new-age financial framework in a country with diverse demographic and linguistic diversity can be daunting.

All stakeholders, from banks, fintech companies, financial services firms, government regulatory institutions, and value-added services, must address the current challenges and ensure inclusive growth through valuable innovative services and products.

Some more improved and relevant fintech innovations include:

  • Fraud-proof e-Stamp with unique identification number
  • E-Way bill – a goods movement compliance mechanism
  • GeM- Government e-Marketplace
  • TReDS- Trade Receivables Discounting System that facilitates MSMEs to receive payments from any corporates through e-banking rightly
  • GSTN for any checking claim on input tax credit
  • Bharat Bill Payment System- an integrated bill payment system where customers can through a network of registered agents through multiple payment modes.

It is necessary to supplement these initiatives with strong policy measures that enable their adoption at scale rather than just being siloed and fragmented success stories.

New-To-Credit (NTC) Customers And Risk Management

India’s current credit gap is nearly INR 16.6 lakh crore. Most of these are small-ticket loans sought by New To Credit(NTC) customers or individuals. They are usually unserved or underserved by conventional financial companies. Financial technology startups are striving to bridge this credit gap with flexible loans. They combine low-cost digital payment modes with innovative delivery models and data science to assess creditors’ creditworthiness and avoid payment defaults.

Many verification tech providers using traditional data points effectively exclude most of India’s population because many of us are new to credit. An excellent financial technology service provider should ensure accessibility with documents such as passports, driver’s licenses, residence permits, and of course, Aadhaar. They need to provide the right resources

Alternative credit scoring is also part of our solution for Indian companies. Credit scoring impacts how businesses evaluate their prospects and customers, from insurance to Ola or Uber rides. Consumers without specific financial data points aren’t necessarily unlendable. De-risking through a broad exclusion of NTC customers in India means losing out on a significant potential consumer base. Multi-platform score, joint modeling, and email detection are part of what we can offer as a more comprehensive alternative scoring solution. I think it’s also noteworthy that these data and insights don’t just help verify customers; they also help businesses build a better understanding of their customers and make better decisions for a longer-term business impact.

Why And How Signzy Enables Financial Companies With The Goal

At Signzy, we consider all the above concerns while crafting solutions. To improve digital payment penetration, we create resources that require very little expertise to integrate and, more importantly- use.

NTC customers need special attention, which we ensure with good ID Optical Character Recognition (OCR) for documents and Face Recognition tech for individuals. It will help make sure businesses can recognize high-risk and unsuitable customers right at the beginning and in an automated fashion.

All this is done using No-Code AI-driven resources that can be integrated seamlessly. We also have patented tech and no code workflow builders that shape the new edge tech required in the market.

So if you seek to improve your venture’s processes, Signzy certainly can help you. Check out our website.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com.

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

 

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