This FinTech solution not only reduces operational expense, but also accelerates lending growth by significantly improving client experience, reducing total turnaround time, and equipping relationship managers with powerful monitoring insights and alerts.
One of the pain points in banking is the waiting time to approve a loan application for both the bank and the customer. In a traditional bank setup, there are multiple departments involved in processing a loan application including credit, onboarding, and operations, which can result in a lengthy turnaround time of around 7-10 days, particularly if there are multiple systems and silos across departments.
Biz2X, a digital lending platform, improves the efficiency of the credit application process, resulting in a 3-5X reduction in the turnaround time. It enables financial providers to power growth with a modern omni-channel experience and best-in-class risk tools. The company partners with financial institutions to support their digital transformation efforts, from origination to AI based risk, auto underwriting, cash flow analysis, servicing, and collections.
The Tech Panda spoke to Rohit Arora, Co-founder and CEO of Biz2X, about how the FinTech is helping banks streamline the lending process through its SaaS-based model.
Biz2X offers a comprehensive, end-to-end digital lending platform that manages the entire loan cycle right from customer sourcing and origination, using APIs, to collections
“Our platform is designed for banks that are ready to streamline their processes. It provides its proprietary SaaS-based models to banks, so that they can make accurate credit decisions instantly and offer loans to their small business clients within days instead of weeks and months,” he says.
“This can be owed to the Biz2X dynamic features like open API integration, configurable rule engines and workflows, bank statement analysers, and GST insights, rich UI/UX capability with UI orchestration, and finally all this with low cost of ownership and shifting to a true SaaS-based customer pricing,” he adds.
What They Do
A key component of Biz2X’ ability to improve process efficiency for loan applications are its use of AI and Machine Learning to digitalise and analyse customer information. This starts from the moment the enterprise submits its application, which includes Know Your Customer (KYC) information to identify and verify the company’s registration, directors, authorized signatories, ownership structure, and recent bank statements among other requirements.
This compares to a typical bank setup whereby an onboarding team has to manually record and verify a customer’s identification details into a customer relationship management (CRM) system.
Biz2X also uses AI and big data to simplify financial processes for lenders through its other advanced tools such as Business Score Analyser and Collection Management System
The FinTech also uses a proprietary AI-Machine Learning model to determine the creditworthiness of its applicants based on bank statements or transaction data. The model estimates the applicant’s revenue, expenses, and seasonality to generate a cash flow analysis for the customer, which calculates the enterprise’s credit risk.
“With AI-driven Biz2X’s Bank Statement Analyser, banks and other lenders can easily analyse bank statements. The tool helps in categorisation (computing the total loan amount) and statistical analysis (minimum monthly balance, average credit card payment, etc.) to reveal important aspects such as monthly income of the borrower, his current debts, insurance status and nature of spending,” Arora explains.
“Biz2X also uses AI and big data to simplify financial processes for lenders through its other advanced tools such as Business Score Analyser and Collection Management System,” he adds.
Empowering Banks to Make Instant Accurate Credit Decisions
Biz2X has powered small business lending at brands like HSBC and Popular Bank, among others. With enhanced loan management, servicing, risk analytics, and a configurable customer journey, the startup is helping banks like these run their lending operations at scale.
It uses a streamlined user interface, AI-driven analytics and a customisable white label environment to help banks enhance their core services such as offering focused customer service, growing their portfolio, and increasing the use of their different products.
Also, advances in risk management are among the greatest benefits for the platform’s customers. It uses AI and machine learning (ML) extensively to automate key risk assessment tasks. Through a combination of Natural Language Processing, image analytics, and using data from tens of millions of financial transactions by small and medium businesses, the FinTech offers banks a way to automate manual tasks in the underwriting process and improve customer experience.
Being a SaaS platform, we do not need expensive hardware for deployment and the Total Cost of Ownership is thus a fraction of what you have already spent on your legacy lending solutions
Arora reveals that the Biz2X platform is truly an agile solution with key differentiators that make it stand apart from other lending systems. Its omni-channel digital application provides a user-friendly experience to handle direct customers through a mobile or a desktop, or in-branch relationship manager and with an easily configurable DSA. Various types of retail, business, and SME loans (Secured as well as Unsecured) can be provided through the platform.
“Biz2X offers a comprehensive, end-to-end digital lending platform that manages the entire loan cycle right from customer sourcing and origination, using APIs, to collections. The platform also takes care of underwriting processes, loan servicing, and management,” he says.
“Its fully configurable rules and decision engines with knock-out criteria and auto approvals make the addition of new products much easier and intuitive,” he adds.
The FinTech has customisable scorecards to enhance assessment, including industry-based risk, cash flow analysis, and monitoring. Its built-in third party data integrations to support multiple product types make it ‘fully India ready’, says Arora.
“It can be up and running in 90-120 days, this is also true for changes in the systems post-go-live. We’re SOC2 and ISO27001 certified and have passed rigorous audits. Being a SaaS platform, we do not need expensive hardware for deployment and the Total Cost of Ownership is thus a fraction of what you have already spent on your legacy lending solutions,” he says.
Driving the Indian Banking Sector Towards a Paradigm Shift Via Digital Innovations
Biz2X uses a streamlined user interface, AI-driven analytics, and a customisable white label environment to help banks enhance their core services such as offering focused customer service, growing their portfolio, and increasing the use of their products. The platform offers end-to-end loan management features, including:
- End to end Digital Native Lending Platform
- Configurable rule engine and Workflows powering the Underwriting and User Journeys.
- Rich UI/UX capability with UI Orchestration
- AI-based analytical engine across the Platform for deeper insights.
- Bank Statement Analyzers, GST Insights as well as Continuous Risk Monitoring.
- Low code Platform – helping faster roll-out including white-labeled journeys.
- Deployment Flexibility – Dockerized Platform, private and industry cloud
With customers in multiple countries like the USA, Canada, Australia, and India, the platform is poised to grow into more countries this year. It has been awarded with prestigious awards like Deloitte Technology Fast 500, Great Place to Work, and Benzinga Global FinTech Awards.
“HSBC India has been using Biz2X platform for multiple lines of business in India and they have cited an improvement in Turn Around Time (TAT) for their Relationship Managers of more than 200%,” Arora says proudly.