CEO and Co-Founder of Credgenics Rishabh Goyal.
The Non-Performing Assets (NPA) problem is an issue that many countries, including India, are finding difficult to deal with. Reports suggest that bad loans reported by non-banking financial companies (NBFCs) may increase after March 2022 following the RBI’s clarification on upgradation of non-performing assets. While the authorities concerned grapple to address the problem of NPAs, firms like CredGenics may have a solution.
CredGenix, a recovery and technology enabled collections platform works with financial institutions, banks, NBFCs and digital lending firms to improve their collection efficiency. The platform uses technology, automation intelligence and optimal legal routes to expedite the recovery of bad loans. In an exclusive conversation with India TV, Credgenics CEO and Co-Founder Rishabh Goyal talks about the multi-billion dollar NPA problem in the country and how they want to solve it.
How two IIT Delhi alumni meet with lawyer and aim to solve India’s $200 billion+ bad debt problem?
It has been over a decade that the NPA crisis has been particularly dire for Indian banks that are already struggling to cope with rising bad loans and lost assets. Founded in 2018 by two IIT Delhi alumni Rishabh Goyal and Anand Agarwal and advocate Mayank Khera, Credgenics aims to solve India’s $200 billion+ bad debt problem.
Rishabh and Anand know each other, with IIT-Delhi being their parent organization. Rishabh, after completing his studies in engineering, started working as an investment banker with Deutsche Bank and BlackRock respectively, while gaining experience in the nuances of the lending and collections process. At the same time, Anand was working with the founding team of 1mg. Mayank, whom they knew through common friends, was already practicing law and working on promoting judicial inclusion for underrepresented people. He has been on the panel of NHRC and is a Certified Arbitrator and a Fellow at the World Arbitration Organisation, Berlin. Somewhere in 2017, when Rishabh was working with BlackRock, he noticed that the collection process was still archaic and over two decades with deficiencies in data management and usage, manual processes, harassment to borrowers, and ultimately huge time and cost investments. was much older. , Such was his resolve to break the vicious circle that in 2018, with the help of Anand and Mayank, he started shaping CredGenix.
What is CredGenix SaaS-Based Platform?
CredGenix is a SaaS-based platform that provides end-to-end services that starts from data collection and extends to legal services in case of doubtful debts or lost assets. The platform becomes a bridge between lending and collection platforms for banks, NBFCs and fintechs. The platform is rapidly gaining reputation for customer relationship management as they provide strategic guidance for debt recovery along with recovery forecasts and analysis at each stage for each case. Credgenics is a one-stop shop for their clients by providing complete debt recovery solutions including legal notices and remedies. The collection management system and automated retrieval pipeline are made easy through the culprit CRM tool as it houses an advanced analytics dashboard. The platform provides daily updates for events and helps in sorting and filtering the portfolio based on DPD using multiple forms. Legal services are strong with dedicated team of lawyers across India. This includes sending digital and physical notices to defaulters, filing complaints against them in Indian courts and NCTs, promoting e-arbitration and conducting online dispute resolution, if required.
How CredGenix-Loan Solutions Platform helps Banks, NBFCs to convert bad loans into good assets?
The platform is an end-to-end, SaaS-based, collections management tool, which delivers customized strategies, and recommends optimal legal routes to facilitate rapid resolution of stressed assets. This helps the creditors to efficiently improve their NPAs (Non-Performing Assets), geographic reach and customer on-boarding.
In India, where credit demand of over $600 billion is being met through informal sources, digital credit is set to cross the $100 billion mark by the end of 2023. The increase in the disbursement of credit has led to an increase in NPAs for both NBFCs and NBFCs. Bank.
Ours is the only platform that offers end-to-end management and transparency on the performance of all collection efforts on a single platform. We have been able to improve the recovery rate for our clients by up to 20% which we have been able to achieve through efficient integration and data management through API and SFTP. Seamless management and transparency on the performance of all collection efforts in a single platform. It is possible to improve the recovery rates and time efficiency as well as the overall cost of recovery in the outstanding bucket through cloud-based systems for quicker deployment and updation. We have been able to substantially reduce the legal burden through digital bulk dispatch of legal notices, bulk real-time tracking of notice delivery where time stamps and clicks/opens are tracked in the case of digital notices, and actual In case of notice the delivery status is checked and tracked by our team in real time from the actual speed post. On top of this, intuitive dashboards enable optimization of digital communications, collection channels and call center agent performance. Legal workflows are managed with maker-checker capability on the platform itself.
Who are CredGenix clients?
Within a few months of its inception, Credgenics could demonstrate a strong product fit in the market. Currently, over 50 lenders are using the platform, including 7 banks with notable names like ICICI, Axis and HDFC and over 40 NBFCs, such as LoanTap, Drip Capital, Udaan, DMI Finance, among others. Over the last three years we have managed to increase our MoM by 80-100% and have been able to successfully fulfill the promises made to our customers, while moving forward in more onboarding and travel.
Can you provide us some data about the NPA size of Indian banks currently operating?
Bad loans and lost assets have already been a matter of serious concern for the financial sector. While the situation with banks is less dire, the under-regulated NBFC segment faces more losses. Liquidity becomes doubtful, which affects the performance of the creditor. With the recent data on job losses, where the percentage is as high as a sharp increase of over 20%, the borrower’s ability to pay EMIs on time is also a worrying aspect. Having said that, though we do not have current data, but at the beginning of the year, NPAs were already at a high of 14%. One thing that can be helpful here is to improve the digital infrastructure in the bank and legal sector and accelerate lending and recall with due sensitivity towards the borrower. With less processing time and rate of investment, the benefits will also be seen in better financial inclusion. In any case, the $100 billion crossing of digital lending has to be facilitated, while ensuring that NPAs do not freeze and better regulations are in place for the digital lending segment.
What does all Credgenics have to offer its customers?
Credgenics provides two solutions to the customers – one where the creditor can purchase our software and complete the rest process, the other is end-to-end recovery where the entire process from data management to online dispute resolution and litigation processes is done by us. Designated Teams. The process, starting with data integration and management across the platform, proceeds to generate actions using automated rule defined widgets, and then use any of the five modules such as cloud-based calling, automated communication and the Field Executive Android app. Contacts borrowers using For on-field collection, legal notice and litigation workflow. The communication and solution becomes personalized for each customer and borrower. Dashboards are uniformly personalized to reflect case tracking, so that the next best course of action can be decided and implemented. All this together, makes the platform a one-stop solution to the debt recovery woes.
Are there any expansion plans?
With our recent Series-A funding, we will drive our international expansion into Middle-East countries and other interested geographies in the near future. In addition to the geographical expansion of our services, we would also like to work on an improved and comprehensive collection process that will enable us to operate in less technically-intensive areas. Our focus is also on improving our products and expanding our offerings to meet the demands and requirements of the growing recalls, including developing a strong team always ready to address the problems and offer solutions to the lending ecosystem is included.
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