BFSI

Faster one-day loan processing and over $2.5m annually recovered from collection

Challenges
The client is a large financial services company offering unsecured credit such as auto loans worth $4.5B across 300K auto loans. All business processes—from loan origination to underwriting—were handled manually, resulting in risk to business growth. The client needed to speed up underwriting and take credit decisions accurately and efficiently. The client also wanted to leverage data to monitor potential loan delinquency behavior and mitigate proactively.
Solutions
ElectrifAi’s ML-based underwriting scorecard and credit decision solution improved loan processing accuracy and efficiency. An advanced customer behavior scorecard model and strategies were implemented to monitor to maximize the collected principal once customers default. The customer collection scorecard model was implemented using multiple data sources to generate collection risk alerts and plan stratified collection actions daily.
Outcomes
$2.5M
saved annually from potential loan default
1 day loan processing time from 3-5 days
38%
increase in leading capacity
An annual saving of $2.5M from loan default was achieved through ElectrifAi’s solution. Loan processing time was reduced from 3-5 days to 1 day. ElectrifAi’s ML models can automatically underwrite around 40% of loan applications, resulting in an increased lending capacity by 38%. Overnight high-risk customer alerts were sent to business owner. A 10% improvement on collection was achieved within 30 days of the implementation of the solution.