In India, where annual loan disbursements reach trillions of dollars, a significant opportunity unfolds for those ready to navigate the changing financial landscape. According to a recent report from CRIF High Mark published in June 2023, the lending market in India reached ₹198.3 lakh crore.
The substantial unmet credit needs in untapped segments present a stark contrast to global leaders like the United States and China, boasting credit penetration rates of 75% and 55% in the retail sector, respectively, while India grapples with a mere 11%*. For Micro, Small, and Medium Enterprises (MSMEs), the backbone of any thriving economy, India faces a significant credit gap. Behind these percentages lie stories of deferred dreams, stifled businesses, and unfulfilled aspirations.
In the ever-evolving landscape of financial services, Digital Public Infrastructure acts as a catalyst, facilitating the viability of digital lending and connecting aspirations to opportunities. It comes as no surprise that the digital lending market in India is on the cusp of substantial expansion, with projections indicating a surge from $270 billion in 2022 to an impressive $1.3 trillion by 2030**. This remarkable growth translates to a CAGR of 22% over the same period.
The credit gap presents a significant opportunity for financial institutions to address it through digital channels. However, traditional banking systems face hindrances due to legacy issues such as outdated infrastructure and complicated processes. These obstacles make it challenging to meet the expectations of customers accustomed to instant gratification. Slow adoption of digital reforms and reluctance to embrace current data-driven technology hinder informed lending decisions. Legacy systems contribute to increased operational costs and decreased competitiveness, making it challenging to serve evolving customer needs and reach underserved populations.
Lentra's Intelligent Lending Cloud Platform presents banks and financial institutions with the least disruptive path to broaden access, achieve scale, deepen customer understanding, optimise operations, and elevate the overall customer experience.
By automating manual tasks, Lentra helps banks serve customers more efficiently and attract new ones, providing a streamlined, customer-friendly lending experience. What was once a slow and cumbersome process has now become fast, efficient, and accessible to all.
Lentra's channel-agnostic platform enables customers to access lending services across multiple channels, including mobile and online portals, even on low-bandwidth networks. The platform reshapes the lending landscape by equipping lenders with innovative tools to manage challenges and fuel their asset business growth.
Lentra’s solutions streamline operations with customisable workflows (GoNoGo), enhance risk management through comprehensive credit data (MultiBureau and BRE), expedite market entry via a plug-and-play API hub (Go-Getr), and facilitate hyper-personalised offers for customers (Cadenz). Additionally, Lentra’s suite of reconciliation, analytics, and other services empowers lenders to unleash valuable data insights. Lentra empowers lenders to overcome industry hurdles and unlock significant growth potential in their asset businesses.
Lentra is a highly adaptable and efficient platform that serves various sectors, including consumer loans, vehicles, homes, businesses, personal, and agriculture loans. Currently, more than 50 banks and financial institutions in India and Southeast Asia utilise Lentra's platform, that processes over 3.5 million loan applications monthly and disbursed $6.5 billion in loans in 2023.
These customers choose Lentra Intelligent Lending Cloud Platform for three reasons:
1.
Configurable customer-centric journey
End-to end integrated digital journey with a seamless omnichannel experience
Highly configurable microservices architecture with customisable journeys
Fast pre-qualification and instant decisioning in 10 seconds2. Highly secure and reliable
Compliant to the ISMS control & BCMS control framework
In built industry-grade secure infrastructure with AES 256-Bit DAR encryption & TLS 1.2 encryption
Certified with ISO 22301:2019, ISO/IEC 27018:2019 and attested with SOC III3. Unlimited scalability with high modularity
Plug-n-play architecture with rapid deployment & curated journeys
No CapEx required with flexible pay-as-you-go SaaS model
High availability with dedicated data centres and infinitely scalable to keep pace with growthProminent banks have showcased Lentra's commitment to efficiency and adaptability, with one achieving an impressive implementation time of only 37 days for its Cattle Loan Journey. Lentra's track record positions it as a key player in transforming digital lending businesses.
Similarly, a leading NBFC witnessed a transformation in its auto loan origination processes, with Lentra facilitating access to the platform for over 260 captive dealers, catalysing a monthly processing of ₹2,000 crores in loans. This underlines Lentra's ability to streamline operations and drive substantial financial transactions efficiently.
As a testament to its success, Lentra recently closed its extended Series B funding round led by MUFG Bank and Dharana Capital. This funding not only facilitates rapid scaling but also allows Lentra to expand into Southeast Asia and the United States, further empowering lenders globally.
To help banks navigate this new era, Lentra provides them with essential tools. The platform enables banks to offer their customers a seamless digital lending experience, propelling the banking industry towards a future where every transaction is a highly personalised journey, enabling credit access thus driving economic growth.
- The author is Hitesh Sahijwala, Executive Vice-President - Sales & Distribution at Lentra.
