Namaste Credit: Transforming MSME Loan Approvals with Cutting-Edge AI
Namaste Credit, a Bengaluru-based technology-focused B2B loan marketplace, is poised to revolutionize small and medium enterprise (SME) financing by leveraging India's leading AI-based credit discovery and underwriting platform. With over 80 banks using its platform to date, Namaste Credit has disbursed close to Rs 1700 crore, demonstrating the potential and impact of its advanced technology in streamlining loan processes for MSMEs.
Revolutionizing Loan Application and Onboarding
The platform, known as the Intelligent Credit Assessment Model (iCAM), significantly reduces the time and complexity involved in loan applications and onboarding for SMEs. Traditionally, it would take banking institutions up to five days to process and approve SME loan applications. Namaste Credit, however, can achieve this in under two hours, significantly improving efficiency and accessibility.
Rapid Credit Analytics with Enhanced Data Utilization
The iCAM platform not only accelerates the loan application process but also provides lenders with advanced credit analytics through the use of AI and automation. By enabling the use of up to 10-15 more customer data points, lenders can make more informed and accurate decisions. The platform seamlessly integrates with lender systems via standardized APIs, enhancing the scope, speed, and quality of credit analytics. Its proprietary OCR engine and AI algorithms ensure that data is cleansed and analyzed to provide actionable insights for business credit and risk systems teams.
Collaborating with Channel Partners for Broader Reach
Namaste Credit works with channel partners to extend its services beyond the digitally-savvy segment of the market. Our channel partners help us reach out to people who aren't yet digital, expanding the reach and accessibility of our services. The challenges in the lending industry include dealing with extensive documentation that can run into hundreds of pages, resulting in thousands of data points. Namaste Credit addresses this challenge by using advanced AI to transform analogue documentation into a digital format, making it more accessible and easier to process.
Leveraging AWS for Enhanced Security and Efficiency
The company has integrated with Amazon Web Services (AWS) to leverage security databases, AI/ML tools, and more. This integration has significantly boosted our volume and efficiency. We are currently running pilots on Amazon SageMaker for better image classification and transaction analysis. Our system is highly flexible, as we create customized formats for each lender, allowing us to cater to the unique needs of different financial institutions.
Efficiency and Scalability in Action
Namaste Credit's platform is a game-changer in the lending sector. By taking the analogue world and transforming it into a digital format, we are able to capture and process loan data in far less time than traditional methods would allow. Our solution is not only efficient but also scalable, as we have partnered with the largest non-banking financial companies (NBFCs) and top five banks in India. This collaboration has enabled us to reach a wider audience and provide more comprehensive services.
The journey to create an innovative technology-focused B2B loan marketplace has taught us that the efficiency of credit facilitators and channel partners, such as loan agents, chartered accountants, and wealth managers, is crucial for making the business loan value chain better and more productive. With over 10,000 channel partners across 17 key markets, we are well-positioned to support the growth and success of countless SMEs.
Future Prospects and Impact
According to the Reserve Bank of India (RBI), gross bank credit has grown by 61.5 percent in 2018-19. However, micro, small, and medium enterprises (MSMEs) constituted only 0.6 percent of the total new credit provided by Indian banks. This highlights the urgent need for solutions like Namaste Credit. Namaste Credit's underwriting process using AI is the perfect tool for banks to find SMEs and invest in them, ultimately driving the country's economic growth.
With continued innovation and strategic partnerships, Namaste Credit is well on its way to making SME financing more accessible, efficient, and reliable. Our mission is to empower SMEs with the financial resources they need to achieve their growth potential. Join us in driving change and fostering a brighter economic future for all.