Introduction

Co-lending, a financial arrangement where lenders collaborate to provide loans to originators, has gained significant growth in recent years. This case study explores the successful co-lending partnership between Banks and NBFCs, showcasing how this collaborative approach has empowered small businesses to access the financing they need to thrive.

Background

Bank is a traditional financial institution with a long history of serving its community through conventional banking products. NBFC, on the other hand, is a fintech startup specialising in innovative lending solutions and digital financial services. In an effort to combine their strengths and reach a broader customer base, they entered into a co-lending partnership in 2021.

Challenges

Regulatory Compliance: Ensuring compliance with changing financial regulations and maintaining data security standards required continuous effort and investment.

Technology Integration: The initial integration phase presented technical challenges that required dedicated resources to overcome.

Policy Differences: Combining the policy and working styles of a traditional bank and a fintech startup required effective communication and collaboration.

Solution

We offer products that make the co-lending process simple. We provide the proper partners for your co-lending and managing the application process through our OMNI product.

• Workflows for loan approval were streamlined, reducing manual intervention.
• Loan applications were automatically routed to the appropriate lender based on predefined rules.
• Real-time analytics provided insights into portfolio performance, allowing proactive risk management.
• Dashboards tracked key metrics and compliance indicators.
• Established a compliance tracking system that ensured all co-lending activities complied with lending laws and regulations.
• Generated custom reports and dashboards to monitor portfolio performance and compliance in real-time.