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Vivifi India Finance Private Limited (Vivifi), a FinTech NBFC (non-banking finance company), has transformed the consumer credit landscape in India with its artificial intelligence (AI) driven loan management system used by its flagship lending product - FlexSalary.
FlexSalary is a reusable line-of-credit with flexible repayment options which enables access to credit to the sub-prime population of India. FlexSalary's AI powered underwriting algorithm plays a crucial role on two fronts - first, eliminate fraud, and second, by minimizing human intervention, reduce the loan approval process by a fourth. "Artificial Intelligence and Machine Learning minimize human intervention in the loan approval process.
So, not only does FlexSalary enable credit availability anytime, anywhere provided one has an Internet connection and a bank account, but with its revolutionary Electronic Income and Bank Verification option, it allows an individual to receive the loan on the very same day whereas, traditional avenues take much longer," said Anil Pinapala, Founder & CEO, Vivifi India. The AI powered underwriting algorithm applies a four-step process to eliminate fraud and assesses factors such as Intent-to-Repay, Ability-to-Repay and predicting Ability-to-Collect. The algorithm analyses Application data - details provided by the customer in the application form, Associated data - social variables, personal finance and behavioural data such as web browsing patterns and trust predictors, and Amalgamated data - third-party credit data, fraud, risk and identity data.
Once the data is collected, validated and analysed using Machine Learning and Artificial Intelligence, the algorithm scores the individual on each of the aforementioned factors and a pattern is constructed using a cumulative score. This pattern predicts whether an applicant is a good borrower or not. "FlexSalary identifies a good borrower by determining his ability to repay and intent to repay. The former is predicted based on his income, existing debt, expenses, obligations, etc.
The latter is judged based on his credit history, identity verification and so on. Based on this information, an underwriting decision is taken. With our proprietary globally proven Loan Management System, FlexSalary has enabled access to credit to the sub-prime population of India. An individual with salary as low as INR 8,000 per month is eligible to apply for a loan and CIBIL score is not the only parameter that is considered for approval. This has really expanded the financial inclusion agenda that we had hoped to pursue," said Srinath Kompella, Co-founder & COO, Vivifi India. "Our Underwriting Platform is built on the foundation of a very mature one that has been used to deploy over USD 500 Million to sub-prime and non-prime consumers worldwide and has successfully collected over USD 600 million from the same. We have benefitted from the years of experience we have amassed lending in the Prime and Sub-Prime markets in various geographies and we have localized the same for the Indian Credit Market.
This has ensured that our Underwriting Platform is equipped to handle all kinds of vagaries with its inbuilt AI and Machine Learning algorithms," added Anil Pinapala. Founded by technocrats Anil Pinapala, Srinath Kompella, Mridula Regulagadda, and a banker Patrick Kishore, Vivifi is India's only FinTech NBFC that provides credit to non-prime customers. Launched in August 2017, FlexSalary, within just one year of its operation has approved over 20,000 accounts and its mobile application has crossed 150,000 downloads.