To adopt innovative technology-based solutions for its various businesses, Yes Bank has tied up with Fintech start-ups. The banking firm will now offer loans to students through these start-ups. It has partnered with Redcarpetup, Anytime Loans and FRS Labs among few others to adopt innovative technology based solutions for various businesses, such as lending, anti-fraud detection and easier customer onboarding processes.
Yes Bank in a statement explained that Innovation is essential part of the banking world and partnership is the best way forward. It will benefit both the organisations as bank we can bring scale and fintech start-ups can bring in latest technology. This will save the bank form creating unneccessary work of creating factories of back office.
Fintech start-up Redcarpetup will allow the bank to lend to students, which is something banks have never done before. It does not provide cash to students but gives students power to buy products they otherwise cannot afford. Students are given 9-month period to pay back.
The technology company has identified about 100 colleges in the National Capital Region and underwrites applicants on the basis of the college, the type of course, their education background and their social circle.
Another start-up Anytime Loans, an automated P2P lending platform, uses artificial intelligence to read facial features and feed it into a predictive model that determines the borrower’s propensity to default. The company has disbursed Rs 68 crore over the last 30 months to 38,700 entities for personal loans, business loans and education loans. Its gross defaults are at a low 0.6 per cent.
They claim to have a supply commitment of Rs 16 crore form different lenders. Now with the integration with Yes Bank, the firm has an additional Rs 6 crore for both personal loans and MSMEs, said K K Jain, founder of Anytime Loans.
Through its YES FINTECH initiative launched this year, YES BANK is providing a platform for fintech startups to co-create innovative solutions that will be beneficial to the bank’s retail, SME and corporate customers.
Fintech startups are using Data analytics, Artificial Intelligence (AI), Natural Language Processing (NLP), Machine Learning (ML), and more. These startups are on a continuous journey to create innovative solutions in areas such as financial inclusion, risk management, MSME-focused solutions, data security, lending, trade finance, capital markets, compliance, including forex and treasury.
FRS Labs is also working with Yes Bank to allow its customers open bank accounts from the comfort of their homes. While various banks allow customers to open accounts remotely through selfies, FRS Labs detects the picture, reads facial features, checks for liveliness of the applicant and matches it with other databases to detect fraudulent applicants.
Other start-ups like Numberz, Morph.ai, Rupeeseed will be playing active role and serve as support system.
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