Debt collections, recovery landscape in India is multifaceted

SaaS-based businesses with a focus on loan recovery are essential for tackling the particular difficulties faced by the Indian market. By reducing defaults and maximising resource use, their technologically advanced solutions not only increase the effectiveness of loan recovery procedures but also strengthen the financial stability of lending institutions.

India Business and Trade spoke with Mr. Anand Agrawal, Co-Founder & CPTO, Credgenics, on the prevailing digital framework in debt collections in the country. Describing the debt collection ecosystem in India as multifaceted, Anand says that by using sophisticated AI-ML models, the company recommends the best-suited and tailored collections strategies to lenders; thereby simplifying complex requirements for the recovery workflow from pre-due stages to various delinquency buckets and field collections to legal stages. 

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IBT: Can you provide a brief overview of Credgenics and how it came into existence in the field of debt collection and loan recovery?

Anand Agrawal: Established in 2019, Credgenics is India’s premier provider of cutting-edge loan collections and debt resolution technology solutions, catering to banks, NBFCs, ARCs, and Digital Lending firms, globally. Founded by Rishabh Goel (CEO), myself (Anand Agrawal, CPTO), and Mayank Khera (COO), our SaaS-based platform uses sophisticated AI-ML models to recommend the best-suited and tailored collections strategies to lenders.

We recognized the prevailing archaic approaches and lack of a robust digital framework in debt collections – a crucial leg of the lending ecosystem. Through its state-of-the-art integrated collections technology platform, Credgenics empowers lenders to seamlessly digitize and manage the entire recovery workflow, spanning communications, strategy, field operations, litigation, billing, payments, and reconciliation. Boasting an illustrious customer base (100+ customers including HDFC Bank, ICICI Bank, DMI Finance, Mahindra Finance, IIFL Finance and others), the company has made a significant positive impact on the lending ecosystem, touching an overall loan book of USD 60 Billion in the FY 23 for collections.

IBT: Provide an overview of the debt collection/recovery space in India. What sets Credgenics apart from other solutions available in the market, especially considering the Indian context?

Anand Agrawal: The debt collections and recovery landscape in India is multifaceted, involving various stakeholders like banks, NBFCs, ARCs, and specialized agencies. The RBI has taken several key actions with the objective of expanding liquidity in the market, improving credit flow, easing the financial stress of financial institutions as well as the industry, and enhancing the overall functioning of financial markets in the country. While there is a robust adoption of digital technologies to enhance efficiency and ensure consistent growth of the debt collections industry in India, the sector grapples with notable hurdles, including processing times, manual collections practices, and grievance resolution mechanisms, impacting debt support and risk mitigation.

Credgenics collections technology platform caters to the complex requirements for the recovery workflow from pre-due stages to various delinquency buckets and field collections to legal stages. Its SaaS-based specialized technology platform and data-driven approach have enabled it to reimagine these processes for lenders and help them get future-ready when it comes to debt collections. With Credgenics, lenders have increased resolution rates by 20%, improved collections by 25%, reduced collections costs by 40%, reduced collections time by 30%, and improved legal efficiencies by 60%. We handle 11 million retail loan accounts and send 60 million digital communications every month.

IBT: How does Credgenics’ SaaS technology adapt to the diverse needs of lending institutions like banks, NBFCs, and Fintechs?

Anand Agrawal: Credgenics debt collections technology platform is leveraging modern technologies like Artificial Intelligence, Machine Learning, Data Analytics, Predictive Analysis, and Natural Language Processing (NLP), to create segments based on borrowers’ demographic profiles, repayment patterns, and response rates over various channels, to boost the efficiency of the lenders’ conventional strategies. The platform is capable of catering to the needs of lending institutions including banks, NBFCs, and Fintechs.

Here are some of the ways in which the Saas platform helps:

• Collections analytics: Credgenics Collections Analytics allows segmentation of borrowers based on multiple parameters including risk, for a targeted outreach strategy. The platform’s ML-driven analytics prioritizes the time, frequency, message, language and most responsive channels for outreach based on borrower profiles. This helps lenders Identify key metrics for optimization with real-time insights.
• Automation and Efficiency: Lending institutions, regardless of their size, benefit from automation as it comes with higher speed and reduced cost of operations. Credgenics’ SaaS platform provides capabilities such as workflow automation, and digital campaign management, thereby improving efficiency and reducing manual errors.
• Integration with Existing Systems: Seamless integration with existing systems is essential for banks, NBFCs, and Fintechs. The platform integrates with core banking systems, customer relationship management (CRM) software, and other relevant tools.
• Regulatory Compliance: Lending institutions operate in a highly regulated environment. Credgenics’ platform facilitates a very customer-centric, compliant, and dignified approach to collections. It provides a comprehensive framework for DND,  frequency and daytime controls, and date  exclusion, in compliance with the  regulatory
• Flexibility in collections: Different lending institutions have unique workflows and requirements. Credgenics’ flexible and customizable SaaS solution allows banks, NBFCs, and Fintechs to tailor the platform to their specific needs. Credgenics’ Billzy, a distinctive web platform empowers lenders to offer their loan borrowers simpler, faster, and more secure digital payment options. Through seamless integration with the Credgenics collections platform, lenders gain real-time visibility on repayments. Borrowers can conveniently use Billzy to streamline and consolidate all their transactions, including other bills.
• Data Security: Given the sensitivity of financial data, robust security features are non-negotiable. The SaaS platform adheres to industry standards for data security and ensures the confidentiality and integrity of sensitive information.
• Customer Experience: For Fintechs and other lending institutions looking to differentiate themselves, a positive customer experience is essential. Credgenics’ solution ChatR is a comprehensive two-way chat solution on WhatsApp that enables collections teams to engage more effectively with borrowers through verified business accounts. It is an industry-first innovative solution that empowers lenders to communicate with loan borrowers more conveniently, always with borrowers’ consent.

IBT: How does a company such as Credgenics ensure compliance with debt collection laws in India?

Anand Agrawal: Compliance is the bedrock of the Indian debt collection industry. It ensures that the collection process is ethical, lawful, and respectful of borrower rights. Through adherence to regulatory guidelines, professionalism, and the responsible use of technology, the debt collections industry can contribute to the overall health of the financial ecosystem in India. Assuring strict compliance with the relevant RBI norms, Credgenics’ technology platform incorporates extensive checks and control mechanisms. It facilitates a very customer-centric, compliant, and dignified approach to collections.

It encourages the adoption of an unobtrusive, personalized, and digital communications approach, along with a comprehensive digital collections strategy. The platform prioritizes clear communication, negotiation, and empathy, aiming to find mutually beneficial solutions for both lenders and borrowers while maintaining a respectful and ethical approach throughout the collections process.

IBT: Which industries or sectors have benefited significantly from your company’s services?

Anand Agrawal: Credgenics is facilitating rapid digital disruption for retail lending companies in the BFSI sector across India and Southeast Asian countries. With a combination of AI, ML, and other digital technology capabilities, Credgenics has helped retail lenders transform conventional collections strategies, leading to higher scalability, efficiency, and cost-effectiveness in their processes. The robust client base extends to 100+ satisfied customers. This demonstrates the widespread and positive influence Credgenics’ services have had in the BFSI industry, solidifying its position as a trusted partner in the sector.

IBT: In August, your company bagged US$ 50 million in Series B funding. What does the future hold for Credgenics? What are some of the operational developments or expansions on the horizon?

Anand Agrawal: Credgenics has witnessed substantial revenue growth in recent years, propelled by our cutting-edge solutions and increasing customer base within the financial services sector. As we look forward to the upcoming year, we remain confident in sustaining and advancing on this growth trajectory. Our commitment lies in deepening connections with our existing clientele across diverse collection use cases, anticipating revenue growth through increased client engagement, and introducing innovative solutions to our service portfolio.

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Anand Agrawal is the Co-founder and CPTO of Credgenics. A product and technology enthusiast with an interest in the fintech ecosystem. he has earned dual degree, B.Tech and M.Tech, in Computer Science from the Indian Institute of Technology, Delhi. In April 2021, Anand was featured in Forbes’ 30 Under 30 – Asia – Enterprise Technology. Prior to launching Credgenics, he worked as a Senior Data Scientist at 1MG Technologies.