Smart Collect is a smarter way to optimise loan collections for lenders and enable hyper-personalised collection strategies.
The product enhances ease of payment and transparency for customers ensuring smoother transactions.
Lenders gain real-time payment tracking and faster recovery with Smart Collect.
November 2024:
Data analytics startup Finarkein Analytics has launched Smart Collect, a smarter way for lenders to manage loan collections and enable hyper-personalised collection strategies.
Currently, most digital loan collections in India (excluding intrabank transactions) rely on E-NACH (Electronic National Automated Clearing House) and UPI Autopay, systems that are technically proficient but do not guarantee successful collections. Nearly 35% of these transactions fail due to balance insufficiencies.
As of April 2024, nearly 30 crores out of 110 crore NACH presentations have failed due to issues such as limited retries, balance insufficiencies, and delayed confirmations, underscoring the need for a more proactive approach. Smart Collect adds an intelligence layer that enhances the efficiency of these E-NACH/UPI Autopay processes by leveraging the Account Aggregator framework.
Smart Collect enables lenders to deploy hyper-personalised strategies that monitor customer accounts, schedule optimal presentations, and provide smarter retry options. Through dynamic scheduling based on account status, the system reduces the need for manual follow-ups and boosts efficiency while reducing operational costs and time. The system has the potential to reduce collection failures by up to 15% and cut collection costs by as much as 25% for lenders.
With the rise of digital public infrastructure, such as the Account Aggregator framework, borrowers can securely share their financial data with lenders, creating a more comprehensive and accurate profile. This transparency enables lenders to assess creditworthiness and financial behavior more precisely, tailoring repayment plans that align with borrowers’ unique financial circumstances.
Nikhil Kurhe, Co-founder and CEO of Finarkein Analytics says, “As the Account Aggregator framework matures, we will see use cases beyond lending in domains such as payments and more. Finarkein sees the transformative potential DPIs like AA hold to increase financial inclusion. With the launch of Smart Collect, we are enabling a new era of seamless, data-driven financial interactions that support more accessible and inclusive financial services for everyone. India’s leading NBFCs has seen a substantial improvement in their DPD0 numbers with Finarkein.”
Smart Collect offers real-time account monitoring to ensure customer accounts are checked for sufficient funds before scheduling presentations. Its smart retrying capabilities optimise limited NACH retries based on customer account insights, improving loan collection success rates. Interactive collection and tracking provide lenders with end-to-end visibility into collection statuses, enhancing transparency and decision-making.
Additionally, Smart Collect provides a customised approach for addressing issues like partial payments, late fees, and bounce memo generation. Designed for lending-specific challenges, it reduces manual reach-outs and accelerates collection processes, benefiting both lenders and customers.
About Finarkein Analytics: Founded in 2019 in Pune, Finarkein Analytics powers key ecosystems like AAs, OCEN, ONDC, and ABDM and serves over 60 enterprises in India. As an early contributor to India’s Digital Public Infrastructure, Finarkein Analytics is dedicated to advancing secure, efficient financial solutions.
For more information on Smart Collect and how it can benefit your organisation, visit Finarkein Analytics.
