It has been an interesting two years for the team at Home Credit India (HCIN). The unit, which operates as a central bank licensed Non-Banking Finance Company (NBFC), while offering insurance services and other value-added services through partnerships, has been operational in India for the past ten years.
The parent company was founded in 1997 in the Czech Republic and has since branched out into a number of other key markets. HCIN’s core goal is to empower people to live the life they want now, by focusing on financial inclusion and responsible lending. Home Credit Group is known for offering regulated, reliable financial products and services to the “unbanked or underserved” sections of the population through seamless loan applications, fast credit scoring and subordinated lending.
Milan Dolansky, Chief Digital Officer or CDO for Home Credit India, has led the institution’s digital transformation for the past five years. Former change manager for digital products and services in CSOB, a Czech bank in Prague, he has over a decade of experience in the banking industry, improving services and driving technological innovations.
He says of HCIN: “Our services are simple, easy and fast, with a focus on increasing credit penetration through responsible lending, which strengthens our customers, who usually come from a demographic outside the banking system. Basically, we make it possible for them to access financing or credit easily and securely, both online and offline. “
Better financial inclusion
Dolansky points out that the main purpose of parent HCI – especially in India – is to work to improve financial inclusion and open access to the financial industry for the unprivileged segment of subprime. “For that reason, many of our customers are first-time borrowers or new ones with credit,” he says, referring to the cultural aspect of lending in India, where those who have been bypassed by the traditional banking system in the past have had to rely on local loans. their, and in an environment where the practice of loan sharks is widespread.
“In the Indian market, the credit card is an ambitious product,” says Dolansky. “There are 1.3 billion people in India, but there are only tens of millions of credit cards. So a large part of the population hopes to have a credit card one day. But the banks are much less flexible as to who actually gets one.”
It is this rigidity in the traditional financial market that HCIN seeks to address through a number of innovations. “We look at our role as one that brings pre-approved lending services to many more people,” he says.
As part of the initiative, HCIN has plans for a virtual card launch over the next few months, which will allow their customers to enjoy the benefits of a pre-approved or flexible loan product. “This is definitely an innovation for the market,” says Dolansky.
The digital ecosystem and strategic partners
As part of HCIN’s digital transformation journey, the organization has entered into a partnership with HyperVerge, a leading AI documentation and data technology company. The collaboration means that the application processes for the customers have been completely streamlined: documentation is scanned, read by AI and then archived for future use.
HCIN discovered that HyperVerges OCR was already enabled to scan and collect data on Indian documentation. The use of the technology has enabled customers to take three photos of their papers via mobile phone, and the software platform does the rest by reading information with 85% accuracy – which then only needs to be checked for confirmation when the online fields are ready for viewing. “The process eliminates the need for the customer to enter a number of details, saving them time and stress,” says Dolansky.
Customer centrism, data and KYC
HCIN’s culture is innovation through strategy. As part of the development, the company seeks advice from users on the journey towards better products and services. Dolansky believes that fintech is as much about bringing the customer’s needs into sharper focus, as it is about delivering better services.
Ultimately, the goal is to provide better opportunities for people who have been cut off from the traditional banking system. “It’s about improving lives,” Dolansky said. “Giving a family their first laptop or smartphone home computer so they can study better and enable home improvement loans so they can have a nicer environment. These are things that before our services were unattainable.”
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