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Finarkein Analytics Introduces Smart Collect to Address High Failure Rates in Loan Collections

Smart Collect is a smarter way to optimize loan collections for lenders and enable hyper-personalized collection strategies

Nikhil Kurhe, Co-founder & CEO, Finarkein Analytics 

Data analytics startup Finarkein Analytics has launched Smart Collect, a smarter way to manage loan collections for lenders and enable hyper-personalised collection strategies.

Currently, most digital loan collections in India (excluding intrabank transactions) rely on E-NACH (Electronic National Automated Clearing House) and UPI Autopay, systems that are technically proficient but do not guarantee successful collections. Nearly 35% of these transactions fail due to balance insufficiencies. As of April 2024, nearly 30 crore out of 110 crore NACH presentations have failed due to limited retries, balance insufficiencies, and delayed confirmations, underscoring the need for a more proactive approach. Smart Collect adds an intelligence layer that enhances the efficiency of these E-NACH/UPI Autopay processes by leveraging the Account Aggregator framework.

Smart Collect enables lenders to deploy hyper-personalised strategies that monitor customer accounts, schedule optimal presentations, and provide smarter retry options, reducing the need for manual follow-ups through dynamic scheduling based on account status. This not only boosts efficiency, but also reduces the operational cost and time involved. The system has the potential to reduce collection failures by up to 15% and cut collection costs by as much as 25% for lenders.

With the rise of Digital Public Infrastructure like the Account Aggregator framework, borrowers can securely share their financial data with lenders, creating a more comprehensive and accurate profile. This transparency enables lenders to assess creditworthiness and financial behavior more precisely, tailoring repayment plans that align with borrowers' unique financial circumstances.


Lenders gain real-time payment tracking and faster recovery with Smart Collect.


Nikhil Kurhe, Co-Founder and CEO, Finarkein Analytics, says, “As the Account Aggregator framework matures, we will see use cases beyond lending in domains such as payments and more. Finarkein sees the transformative potential DPIs like AA hold to increase financial inclusion and with the launch of Smart Collect, we are enabling a new era of seamless, data-driven financial interactions that support more accessible and inclusive financial services for everyone. India’s leading NBFCs has seen a substantial improvement in their DPD0 numbers with Finarkein.”


The product enhances ease of payment and transparency for customers ensuring smoother transactions


Smart Collect offers real-time account monitoring to ensure customer accounts are checked for sufficient funds before scheduling presentations. Its smart retrying capabilities optimise limited NACH retries based on customer account insights, improving loan collection success rates. Interactive collection and tracking provide lenders with end-to-end visibility into collection statuses, enhancing transparency and decision-making. Additionally, Smart Collect provides a customised approach for addressing issues like partial payments, late fees, and bounce memo generation. Designed for lending-specific challenges, it reduces manual reach-outs and accelerates collection processes, benefiting both lenders and customers.

Hashtags: #SmartCollect #LoanCollections #FintechInnovation #DataAnalytics #HyperPersonalisation #AccountAggregator #FinancialInclusion #UPIAutopay #ENACH #DebtRecovery #DigitalLending #FinarkeinAnalytics #TechDrivenFinance #TransparentBanking #CustomerExperience

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