Fast Track Financing: Revolutionizing Auto loan origination with Digital KYC

Business Needs & Challenges

Traditional loan origination processes often rely on manual Know Your Customer (KYC) procedures, leading to several challenges for lenders. One of the largest NBFC in India was facing similar challenges.

• RBI Regulatory Compliance: Meeting stringent Reserve Bank of India (RBI) regulations for digital KYC was complex, with manual methods.
• Processing Delays: Manual data entry and physical document verification significantly slowed down loan processing times, causing customer frustration and high drop-out rates.
• Increased Costs: Manual KYC processes were labor-intensive and expensive due to personnel requirements, document handling, and potential errors.
• Poor Customer Experience: Lengthy loan application cycles with manual data collection and document submission created a negative customer experience.

Digitizing the KYC Process

Coforge lead the enhancements to the existing Two-Wheeler Loan (TWL) LOS application to comply with Digi KYC Process

• Intuitive User Interface: user-friendly interface to guide sales representatives through initiating the digital KYC process for loan applicants.
• Automated SMS Communication: SMS with a unique URL was sent to both the customer and the sales representative.
• KYC Completion Requirement: checks and validations to prevent further loan application processing until the KYC process is completed by the customer
• MuleSoft Integration: secure integration with MuleSoft to facilitate seamless data exchange between the KYC platform (potentially Hyperverge) and Salesforce.
• KYC Visibility: KYC details readily visible to authorized users within the LOS application at all stages of the loan process.

Impactful Outcomes

• 50% reduction in KYC processing time
• 80% reduction in manual errors and rework
• 100% regulatory compliance, minimizing the risk of non-compliance and potential fines
• 70% cost savings as compared to traditional manual processes
• 20% increase in CSAT due to enhanced Customer Experience