According to TransUnion Cibil reports, nearly 22 million Indian consumers apply for credit every month. However, the majority of them have been denied credit due to bad credit history or lack thereof. To address the issue, Mumbai-based digital lender CASHe has introduced a first-of-its-kind social behavior-based credit scoring system called Social Loan Quotient. [SLQ].
“CASHe is for young professionals who are near-prime or sub-prime borrowers with or without a credit history. Our goal is to make credit available to the underserved (customers new to credit) and bring them into the formal credit system through technological advances ushered in the age of automated underwriting in which computerized systems built internally analyze hundreds of loan application data points and arrive at near-instantaneous logical decisions to approve or deny loans,” said Yashoraj Tyagi, Chief Commercial Officer and CTO of CASHe.
In an exclusive interview with Analytics India Magazine, Yashoraj explained how CASHe integrates ethics into its AI-based credit system.
SLQ is a robust AI-based credit lending system that assesses borrower’s quality quotient and repayment capacity. It leverages a combination of Big Data Analytics and proprietary algorithms to analyze non-traditional data derived from multiple online and offline data points, like smartphone metadata, social media footprint, education, compensation , career and financial history and calculate the borrower’s creditworthiness accordingly.
SLQ is dynamic and forward-looking by design. It measures a borrower’s propensity to default based on their current behavioral information instead of traditional credit scoring systems that deliver a score based on historical financial behavior. Scores are generated in real time, allowing customers to know, in seconds, if they are eligible for a loan with CASHe. A higher SLQ score represents a lower propensity to default.
“CASHe aims to transform the digital lending industry in India with its proprietary technology and credit writing system while providing credit to the unserved and underserved – those who otherwise do not have access to credit by traditional means. With 3,000 crore loans disbursed to date, 18 million app downloads, 4 lakh loyal customers and 75% repeat users, CASHe is now the fastest growing digital lending platform in the country. said Yashoraj.
Security is the foundation of any good fintech business. As fintech companies process sensitive eKYC customer data, it is prudent to put in place the necessary safeguards to secure the data. “As part of a multi-pronged security approach, at CASHe, we ensure that customer data and customer interactions are secured to the highest standard,” Yashoraj added.
Here is how CASHe ensures security at all levels:
- CASHe mobile apps, access (login authentication via social login, two-factor authentications), API authentication via tokens, and role-based authorization on what users can see and what actions they can perform.
- All customer data is encrypted using Secure Socket Layer (SSL) technology to ensure the security of personal data when stored on Amazon web services.
- There are security group and firewall controls to control who accesses which API, and there are multi-level authentication, authorization, and checks in their integrations with all partners.
- CASHe regularly performs third-party scans and vulnerability checks of all internal and external applications.
“Security is not an afterthought, but is part of our culture and design. Additionally, security review is a process of constant improvement, and regular audits (internal and external) are performed to validate and improve data and application security,” Yashoraj said.