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In order to appeal to younger clients, ICICI Bank selectively provides a short-term digital credit facility using self-developed algorithms based on data badysis.
"The new digital credit facility is the result of our experience with an e-commerce platform, with which we have proposed a later payment feature," TechCircle Madhivanan Balakrishnan, Chief Technology Officer, said. at ICICI Bank.
"This can range from shopping on ecommerce platforms such as Flipkart or Amazon to buying movie tickets on BookMyShow or to buying travel tickets from the Yatra's tastes, or even order food in Zomato or Swiggy, "Madhivanan said, adding that the instant digital credit line would allow the bank's customers to make low-cost purchases.
According to a report by Boston Consulting Group, the Indian digital loan market would provide $ 1 trillion in opportunities over the next five years.
Learn more about the new loan facility, which will only be open to a few hundred thousand customers Next week, the technical manager said the bank had collected data to form its algorithms.
"We used internal data, information from the Credit Information Bureau (India) Ltd or CIBIL, as well as customer data that we collected with their permission. Madhivanan added that the bank would add new invitations to its customers after 10 days, depending on the answer.
The product will then be made accessible through the retail and extended banking channel. said the technical manager, said the technical manager.
Currently, the loan product limits the average size of the interest-free credit to between Rs 5,000 and Rs 20,000 for a maxim. 45 days.
Madhivanan also pointed out that the product was integrated using the UPI 2.0 framework, which allows attaching credit profiles to UPI identities, thus helping banks to detect and attach short accounts with accounts. savings. System of payments guaranteed by UPI State means Unified Payments Interface.
"We tried to make it as transparent as possible. By integrating with UPI, you no longer need traditional physical tools, such as cards, which can increase costs, "said the chief technology officer, adding that the bank was planning to use this tool to convert young mature customers into credit card customers.
"The central idea is to look for new business models to generate more revenue," Madhivanan said.
The bank intends to test the new product during the holiday season with e-commerce companies. [19659002] It is interesting to note that startups such as Lazy Pay and Simpl also offer short-term credit for food, groceries and utility bills for 15 to 18 days. These payment options are built into applications such as Zomato or BookMyShow. Taxi applications, Ola and Uber, also offer similar symbolic credit services.
The announcement of ICICI Bank is important because all private lenders seek to use technology to reduce customer acquisition costs, allow new products to generate more revenue or reduce their revenues. sales.
In a previous interview with TechCircle, Nitin Chugh, chief technical officer of HDFC Bank, had stated that the lender had extensive recourse to artificial intelligence and machine learning to enhance the experience customer and offer new products to underserved segments. [19659002] Deepak Sharma, Chief Technical Officer of Kotak Mahindra Bank, also told TechCircle that the bank is using technology to drive customer growth in a highly competitive market.
In a previous interview, Madhivanan had stated that ICICI Bank was using new technologies as part of a strategy to reduce the cost / income ratio.
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