Imayan Digital

NBFC Debt Collection Software

Muthukkumaran K | Dec 05, 2024

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Introduction

As a fintech professional with over 14 years of experience, I've witnessed firsthand the challenges NBFC retail lenders face in debt collection.

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The Problem

Non-bank retail lenders incur significant losses of ₹150 to ₹550 per field collection for bounced EMIs, typically under ₹5000. With ~30% of live customers bouncing every month, operational costs rise sharply.

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The Solution

IDAI SelfPay leverages Propensity to Self-Pay Analytics and personalized N=1 Treatment Sequences to convert capable bounced borrowers into self-paying customers through a streamlined, cost-efficient digital solution.

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The Impact

Lenders save a minimum of ₹50 Lakhs per 1 lakh live borrowers, with higher savings at scale. Recovery rates improve significantly, borrower satisfaction increases, and operational efficiency drives better financial outcomes.

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My Experience

In my tenure at TVS Credit, I implemented a digital collections framework that doubled online payments within 6 months, adding 1.2 Cr to PBT.

This experience gave me deep insights into the potential of digital solutions in debt collection.

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Focus on Self-Pay Maximization

I believe that as this solution is conceptualized from the lender's point of view this is unparalleled in the field of debt collection software.

By maximizing self-paid EMI collections, it not only drives substantial cost savings but also fosters stronger borrower relationships, ultimately boosting customer lifetime value.

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Sizing the Selfpay Niche Market

IDAI Selfpay is ideally suited for NBFC lenders who have limited visibility into the bank accounts used by borrowers for repayments. It delivers optimal results for EMIs below INR 8,000, especially when a significant share of borrowers are self-employed.

According to 2023 data from the RBI and Imayan Digital estimates, the potential annual savings from self-pay adoption across all NBFC auto and consumer loans in India is approximately INR 1,500 crore.

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Quick POC, Minimal Setup

As the industry evolves, adopting innovative solutions like this will be vital for the growth and sustainability of NBFC retail lenders.

Contact us to explore a proof of concept (POC) of IDAI Selfpay, and discuss other fintech transformation opportunities across your NBFC's value chain.

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