5 Big Techs Disruptions That Are Changing Indian NBFCs.

October 13, 2022

5 Big Techs Disruptions That Are Changing Indian NBFCs By The Minute!

Banks have always been perceived as preferred lending partners in India. However, there is a massive base of borrowers at the mid and bottom level of the income pyramid, MSMEs, that banks are reluctant to cater to. It is partially due to the rising NPAs and defaulters in banks at an alarming rate, and the inherent flaw of banks to assess the credit worthiness of the borrower without a significant credit history. NBFCs can cater to this market, but how?

The biggest advantage of an NBFC over a traditional bank is its pace to issue loans. Banks need to do in-depth research and extensive documentation of a borrower due to the size of the loan, and managing profits off it; thus leading to massive overhead cost per loan issued. Hence, they tend to stay away from lending to MSMEs whose loan sizes are probably smaller meaning less profit for them but equal time consumption. NBFCs fit in this gap due to its heavy regional influence, capacity to mobilize funds quickly, and fastened disbursement of loans.

However, due to heavy regional reliance for business, lack of sophisticated risk management tools, manual operations, and often the absence of a long-term vision results in these NBFCs do bridge the gap but not quite so.

Fortunately, it is 2019, and all of the following disruptive technologies are here to help the NBFCs to hammer the final nails to become at par with the banks in lending, or maybe even more efficient.

Artificial Intelligence

  • Bots can automate end-to-end lending cycle processes reducing the intervention of human resource
  • Delegation of roles through smart algorithms for a smooth workflow engine
  • Intelligent data extraction and analysis for fact-based reports and decision-making
  • Natural language processing and training for human-like customer service engagement by bots
  • Early detection of internal/external errors or frauds through predictive analysis.


  • Digitized payment gateway methods eliminating time-consuming third-party verifications like in bank transfers.
  • Secured one-tap disbursement of loans through internal-linking with various third-party data sources for background assessment.
  • Implementation of advanced programs to introduce new products/services in minimal time.
  • Record, report, and review every data for transparency and fulfilment of compliances.
  • Completely secure, self-governed, and sustainable automated system to run the operations.

Big Data and IoT - Internet Of Things

  • Omni-channel approach for faster customer acquisition.
  • Data points to study and predict consumer behaviour.
  • Real-time communication with the customer throughout the lending cycle.
  • Greater brand visibility and recall value through social media.
  • Feedback/review mechanism in place to consistently improve and innovate.
  • Enables alternative credit scoring methods to assess the creditworthiness of borrowers through data footprints on the internet.


  • One-tap identification and verification.
  • The minimal probability of fraud imposters availing loans due to unique identification.
  • With the government pushing for Aadhar card, biometrics data ease procurement of data and automates documentation.
  • Biometric data facilitates during legal turmoils against defaulters.

Cloud computing

  • Minimize the dependency on physical storage devices for data storage.
  • Secured and risk-free storage of all the data protection.
  • Access data through multiple systems securely.
  • Faster processing and recovery of information.
  • Instant update across all permitted systems for a smooth workflow.

These technologies and many more to come in the future are not complementary to the existing practices. They are disruptive; already changing the face of the lending industry as we've known it. While the benefits are enormous, the technical aspects of its implementation might cause you to worry.

A good reliable lending software is what you need to get started in minutes. Dare we say that AutoCloud, a full-suite lending software will execute all of the above techs without you having to write a single line of code. If this sounds exciting, come check out here.

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