Monsoon CreditTech Technologies, which offers a Machine Learning-powered loan underwriting and pricing platform for banks in India, has secured an undisclosed amount of investment from a slew of angels, including Sunil Kalra and Aditya Singh, former senior Microsoft executive Rishi Srivastava, and Google Vice President for Southeast Asia Rajan Anandan.
Monsoon CreditTech, which was in stealth mode till recently, was founded in 2015 by a team of data scientists and financial analysts with working experience in companies such as Merrill Lynch, Bank of America, The World Bank, and American Express.
It enables lenders to leverage the power of advanced Machine Learning techniques on their loan datasets without having to commit significant resources. Its Machine Learning Access Program (MLAP) helps lenders maximise loan approval rates, minimise delinquencies, and optimise loan-loss adjusted net interest income.
“Our Machine Learning Access Program (MLAP) is meant to give the top management of banks and non-banking financial corporations (NBFCs) a risk-free way to try our technology on their loan books irrespective of loan-book size or in-house technology expertise. In most cases, our technology is likely to lead to up to a 24 per cent increase in loan approval rates and up to a 20 per cent decline in delinquency rates,” said Ashwini Anand, Founder and CEO of Monsoon CreditTech.
He added that the need for such technology could not possibly be more acute than it is today, when the system-wide Non Performing Assets ratio (NPA) is at 9.6 per cent today and is likely to rise to 10.2 per cent in the near future, according to India’s central bank RBI. “In stark contrast to the perception among some, this is not a problem limited to pubic sector banks as private banks have an NPA ratio of 3.91 per cent, representing more than a 100 per cent jump over the last year’s figure,” he added.
The firm currently works with a range of private banks, NBFCs and new-age lenders.
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