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Generating new lending opportunities with Al

The business loan market has been steadily expanding in India, though the contribution of commercial banks seems to have dropped. According to RBI, the year-on-year growth of bank loans to the industry fell to 7.8% in January 2024 from 8.7% in the previous year. However, NBFC’s industrial credit outflows doubled from 6.1% to 12.8% during 2022-23, with industry analysts predicting the robust growth to continue. To capitalize on new opportunities, business leaders must revamp their loan processing systems and develop innovative strategies to address emerging needs.

A maze of challenges awaits credit companies, whether they are startups striving to gain a foothold in the market or existing players keen to retain their share. It’s crucial to identify profitable opportunities as the first step in the selling process. The higher the quality of prospects, the brighter the chances of their leading to rewarding relationships.

Organizations struggling to cope with constantly evolving business needs are likely following traditional lead acquisition methods. There are two key reasons why these approaches fall short.

1. Customer expectations have become more nuanced and, thus, more difficult to fathom. Borrowers are fastidious in their choices. They demand personalized services. In some cases, they don’t explicitly divulge what they want, yet they expect companies to anticipate and fulfill their wishes. Borrowers are impatient, too. They expect shorter turnaround times and transparent processes.

2. Competition is fiercer, and the market is more crowded. Only the innovative can survive the battle for customers’ mindshare. The days of run-of-the-mill products and services are long gone. Companies must not only make their offerings unique, but they must also find novel ways to deliver them. Both the product and the user’s experience dictate whether business leaders can set their organization ahead of other players.

The need for disruptive lead generation and customer engagement strategies has never been more crucial. So far, lending businesses have focused on simplifying everyday tasks with IT and software applications. Some have ventured into automating repetitive processes, with its scope limited to efficiency improvements in a specific area. Lead qualification and acquisition workflows have continued to rely on human perceptions and decisions. Now is the time for business leaders to transform sales operations with technology.

Al tools offer the power and robustness warranted by new-age demands. Trailblazing applications that leverage Al for loan companies help unearth vital insights from data. They accelerate workflows, facilitating prudent, informed, error-free decisions. Al solutions for NBFCs and banks empower them to enhance their efficiency, reduce credit risks, and acquire an edge in their industry.

How Al benefits organizations

The versatility of Al, coupled with affordable cloud computing infrastructure, opens up exciting possibilities for organizations of all sizes. Al lends itself to a wide range of applications, solving formidable problems and yielding unique benefits.
Al solutions for NBFCs and financial institutions yield unmatched benefits that industry leaders can no longer ignore. Here, we shall consider how Al can revolutionize lending automation processing systems, specifically focusing on sales workflows.

Pre-sales and marketing

1. Market intelligence:

Today, it’s not hard to obtain data from the market. Organizations can collect information from the public domain or from reports published by established research companies. The challenge lies in making sense of the data. Al-based analytical tools can extract insights that indicate critical industry trends and customer preferences with demographic and geographical traits. With this, companies can keep their sales strategies perfectly aligned with market needs.

2. Product mix and positioning:

Lending businesses must plan the right product mix – or, if there is a single product, draw up a few variants. This is important to identify the vast differences in customer expectations. For purposeful engagements, borrowers must be offered a compellingly attractive product on specific terms that appeal to their sensitivities. Al tools throw light on how customers perceive such options, facilitating the creation of best- fit products. With Al, it’s also possible to predict how the market will react to new offerings, facilitating a higher conversion rate.

Selling and onboarding

1. Personalized offers:

Borrowers cherish personalized experiences. Acknowledging and fulfilling the unique needs of customers ensures rewarding engagements. Besides assuring the customer’s loyalty, this also creates a referral network that brings more prospects. Al makes it possible to unravel the intricate financial indicators that reflect the borrower’s aspirations and credit appetite. With this knowledge, need-specific products can be created and promoted to cater to individual requirements.

2. Efficiency enhancements:

When reinforced with Al, automation turns routine sales processes into purposeful, result-focused tasks. Al solutions streamline and speed up the work while reducing errors and credit risks. They analyze bank statements and financial documents, verify the data, and compute creditworthiness scores with unmatched accuracy and speed. Loan processing automation eliminates time-consuming, labor-intensive work, enhancing operational efficiency across the organization. Employing Al for loan companies’ operational needs equips business leaders to deploy resources productively, minimize costs, and increase profitability.

Customer engagement

1. Improved customer satisfaction:

Customer interactions improve with methodical, personalized communications. With Al, it’s possible to target segments or even individual users with messages they can relate to. Loan processing automation leads to quicker approvals that delight customers. Chatbots are an exciting, powerful option to offer automated, intelligent answers to sales and support queries. Customer satisfaction plays a passive yet influential role in nurturing business prospects, and its importance cannot be understated.

2. Cross-selling and upselling:

Companies can discover untapped opportunities by analyzing customers’ experiences, feedback, and interactions. AI can systematically sift through the data, picking out aspects that indicate a potential need. Predictive techniques can also suggest when to pitch the right product to a customer. With the knowledge acquired through cutting-edge algorithms, AI tools offer excellent value in identifying upselling and cross-selling possibilities. These augment revenue streams without the need for additional resources or efforts.

About Finuit

Finuit specializes in building innovative solutions for the global financial services industry. We empower businesses to benefit from cutting-edge AI technologies, helping them tackle real-world operational challenges. All our solutions accelerate and streamline workflows, offering outstanding accuracy, industry-leading performance, and superior reliability. Led by accomplished professionals with decades of expertise, Finuit blends technological acumen, professional practices, and a customer-first approach to create and deliver bespoke products and services for tomorrow’s business leaders.

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