Digital lending market in India expected to grow from $270 billion to $1.3 trillion by 2022[1] By 2030, fintech SaaS startup Lentra is leading the change by empowering customers to make intelligent decisions and democratizing credit through instant processing. Lentra’s cloud-based digital lending platform enables banks to optimize existing lending processes by providing maximum efficiency, better decisions and better customer experience.
#1 Cloud Lending Platform
Lentra, the #1 cloud lending platform, serves over 50 banks across 96% pin codes in India and has handled over 13 billion transactions on its platform. Most banks and NBFCs in India, including top lenders like HDB Financial Services Limited, HDFC Bank, Aditya Birla Capital, Tata Motors Finance, use Lentra Lending Cloud. This Diwali holiday was extra special from the bank’s consumer credit perspective, as consumer, two-wheeler and other loans registered a surge in demand during the Diwali holiday season. On Dhanteras alone, loan applications on Lentra’s cloud platform exceeded 5 lakh – 3 times more than Dhanteras in 2021, at a peak of 8 applications per second. The platform also scaled up on demand to handle over 306 million API transactions during peak traffic hours this festive season. All consumer businesses including consumer durable loans, two-wheeler and auto loans as well as consumer loans exceeded 2019 holiday season volumes as the festive season kicked off around Dussehra and picked up well around Dhanteras and Diwali.
Lentra’s success isn’t just tied to these holidays. The business registered a record-breaking 84 per cent growth in retail loans from in-store purchases on August 15 this year. The applications processed on this one day increased by ~85%, from 65,000 on the same day to over 1.2 lakh in 2021. Most of the demand came from markets for electronics and white goods such as mobile phones, refrigerators and washing machines. Another interesting fact was that the average consumer loan ticket size increased from Rs 13,500 in 2021 to Rs 15,500 in 2022, indicating higher propensity to buy and improving consumer sentiment.
Peeking Under the Hood of the #1 Cloud Lending Platform
The lending platform has all the features, tools and integrations needed to complete any lending journey. Onboarding, Verification, Validation, KYC & Compliance, Credit Decision, Servicing, Collection and other functions. The platform is uniquely capable of managing, taking decisions and handling credit risk digitally and through a single window. Result: Banks love it! The points given below summarize the advantages for the banks:
Mobile-first strategy and single window to connect all ecosystem partners
Instant credit decisions made within 10 seconds
Fast, data-driven credit decisions and instant gratification at the point of sale
Highly customizable workflow creation to meet business needs and flexible customer journeys
Shorter time-to-market and lower acquisition and onboarding costs thanks to configurable customer journey
Best in class industry-standard data security infrastructure with built-in regulatory and legal compliance.
Full compliance with RBI guidelines and orders, and minimizing credit fraud risk from the lending cycle
Effective decision analysis and use of AI-ML technologies for fraud detection resulting in reduction in NPAs
Over 250 pre-integrated APIs for Fintech to support both existing and new customers for banks
Opportunity to expand and tap into new customer bases
Lentra is the future of digital lending
In November 2022, Lentra closed its Series B funding round with a transaction value of $60 million and set its sights on international markets, especially Southeast Asia and the USA. The platform is cloud-native and API-first, built to transform how banks can better monetize their retail and business asset portfolios. It stands to immensely benefit the end customers by empowering its lenders to offer them precisely the products that will help them fulfill their dreams and ambitions. There is enough demand to scale up quickly, even though maximizing the potential of digital lending will require navigating an ever-changing regulatory landscape.
By 2030, digital lending is expected to account for 60% of the total Indian fintech market. As Lentra expands its operations and has better access to a wider variety of customers in terms of funding and product offerings, digital lending will continue to gain momentum in India. Lentra is already committed to creating innovative solutions to help billions of people achieve their goals as the fintech sector drives the expansion of online lending.
[1] https://inc42.com/buzz/digital-lending-become-1-3-tn-market-2030-india/
Author,
Doctor. Jasmeet Chhabra, SVP and Head of Marketing, Lentra.
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