Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of the Economic Times – ET Edge Insights, its management, or its members

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Gone are the days, when a loan application looked like an uphill task with an indefinite waiting time. Today, banks and lending institutions are transforming and aligning their systems to the digital mechanism for providing loans ranging from low tickets to high tickets depending upon the customers’ financial needs.

Sandeep Mathur, Chief Revenue Officer, LENTRA believes A loan is not only a loan, it helps in transforming the business and the individual as well as their families, having a wider societal impact as he discusses the digitization of the lending market in the country.

Changing landscape of lending sector: Going the digital way!

Sandeep Mathur, Chief Revenue Officer, LENTRA believes “The retail lending market is rapidly expanding. We expect it to become INR 100 trillion marketplace. Various drivers are driving the market and the rules by which the lenders played in the past have changed too. Today, lenders need to start thinking as they are beginning to start to provide loans of low-ticket sizes and reach to much wider customer base. The velocity and volume of these loans are changing. Customers expect quick loan approvals and timely disbursements which will require banks and NBFCs to transform their systems.”

 

Customers expect quick loan approvals and timely disbursements which will require banks and NBFCs to transform their systems.

When I say transformation, the traditional lending institutions need to be highly agile, and timely systems deployment. They need to work with lenders like LENTRA where they get the advantage of consumption-based pricing. There is a need to build hyper-scale and secure environments and for doing this there is a need to build technology and application based on cloud realms, he added.

At LENTRA, we identified these basic needs that we thought are going to disrupt and build an API network and cloud-native technology and deliver those at low cost as well as low CAPEX to the banks.

Enabling and empowering lenders via system integrations

Sandeep Mathur informs “We are trying to make it easy for them. The banks don’t need to rethink anything. They need to look at their business and they are very good at that. We enable and empower them to work best with their customers. We take the ownership of building these systems at nominal cost and manage these systems too.”

On the LENTRA Lending Cloud, we offer them the possibility of operating and managing the entire stack. We are not fixated and open to working with several partners, along with the comfort of the lenders and the banks, he further added.

Facilitating lending and transforming lives at the grass-root level

Sandeep Mathur cites “Today, all the applications are mobile-driven. The 4G internet connectivity has made inroads into the rural areas of the country too. Most of our customers are serving in the Tier-II and Tier-III cities and we are proud of them for transforming lives there. A loan is not only a loan, it helps in transforming the business and the individual as well as their families, having a wider societal impact. We take it seriously that you provide accurate credit, information, and decision-making and apply it to all sections of society.”

 

“A loan is not only a loan, it helps in transforming the business and the individual as well as their families, having a wider societal impact.”

Ensuring security in the modern-day lending spectrum

There are a few things to this. One is for most of the lenders their credit policies and rules are a secret sauce and its differentiator too. Within our products, we have a mechanism to confirm with those guidelines. We try to stay ahead of curve concerning security and cybersecurity guidelines. At present, we process over 2 million loan applications per month, and we will continue to invest in this space., he added

Transforming challenges into opportunities

Sandeep Mathur said “We have been very excited. Coming into this marketplace, what we have seen is we initiated when all the lenders were in the process of transforming their assets. Every lender is trying to move into a digital journey! So, for us, challenges were minimal in terms of adoption due to great support from the lenders.”

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of the Economic Times – ET Edge Insights, its management, or its members