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Credit Scoring

New-age digital platforms, can give lenders access to data points as varied as online purchases, strength of social connections and travel patterns all of which, when viewed holistically, allow lenders to get a complete picture of potential borrowers - thus significantly improving their ability to predict loan defaults. Novopay's AI based credit scoring algorithms can process a large number of parameter's from the borrower and make a more nuanced and accurate prediction of repayment behavior as opposed to traditional loan underwriting methods relying heavily on credit scores provided by bureaus. Analysis has shown that Novopay's AI Credit Scoring when compared with traditionall credit scoring - reduces false-accepts leading to loweing NPAs as well as reduces false-rejects - leading to a bigger book. This approach also scales very well since AI credit scoring can process tens of thousands of applications without having to increase the size of the team.

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