As credit underwriting is the bedrock of lending decisions, its modernisation is crucial for financial institutions (FIs), especially in India, where the diverse market demands efficiency, digital collaboration and financial inclusion.
Digital underwriting is not just about faster decision-making through automation; the process ensures greater financial inclusion, offers high straight-through-processing (STP) rates and maintains risk control. Traditionally, credit underwriting has depended on documented financials and credit bureau scores. This approach fails to cover a large part of the market that is new-to-credit. It is estimated that more than 400 million adults in India are credit un-served and another 160 million are credit underserved. Traditional underwriting often automatically rejects or approves a limited number of applications, pushing many into the review bucket, restricting STP rates and increasing inefficiency.
Bu hikaye Business Standard dergisinin September 23, 2024 sayısından alınmıştır.
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Bu hikaye Business Standard dergisinin September 23, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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