Jocata: Digital Lending & Credit Intelligence For The Future Of Finance
India is leading the FinTech adoption race at 87 percent, substantially higher than the world average of 64 percent. The FinTech market is growing exponentially and is expected to reach $200B in revenue by 2030. Driven by the rise of the digital ecosystem, adoption of advanced technologies such as AI/ML, regulatory changes, the significance of seamless customer experience, the platform-based business models, and the growth of the Banking-as-a-Service (BaaS) market, financial institutions are willing to collaborate with FinTechs. Most financial institutions have legacy banking systems that need modernization. Joining forces with FinTechs like Jocata will enable them to embrace digital transformation, take on the demands of today, create strategies for sustainable outcomes, and stay current & competitive in this dynamic market.Jocata (a subsidiary of BILLDESK) is one of the leading B2B platform providers for the BFSI industry, enabling more than 50 large Banks, FinTechs, NBFCs, Insurance, and Payment Companies to be future-ready by using modular and scalable bestin-class technology. Founded in 2010 and headquartered in Hyderabad, Jocata specializes in digital lending using credit automation, smart decisioning, and intelligent monitoring. The highly configurable, purpose-built, low-code platform from Jocata powers enterprise lending programs for large banks and operates in a SaaS model to enable Embedded Finance for FinTechs, Neobanks, and Market places.
“Our deep subject matter expertise combined with the latest innovations in digital technologies has put us at the forefront of this fast-growing market. As a product and platform company, we are the preferred partners of centralized orchestration within a lending institution”, says Prashant Muddu, Managing Director & CEO, Jocata.
Enabling a Successful Digital Lending Transformation
The digital transformation of an end-to-end lending journey, which encompasses both customer experience and supporting credit processes, has become a top priority for financial institutions. However, it is important to recognize that digital transformation goes way beyond technology adoption. It requires financial institutions to fundamentally rethink the way they operate and deliver value to their customers.
Jocata’s platform is purpose-built for modern, intelligent, and new-age digital lending. It offers an integrated digital lending stack comprising of Loan Origination System (LOS), Loan Management System (LMS) & Collections Module. All the core enabling features that are required for a modern digital lending platform are available within the Jocata ecosystem such as Business Rule Engine (BRE), Workflow Orchestration Layer, Data & FinTech API Gateway (100+ integrations), MIS & Dashboard, Built in Document Management System (DMS), Customer Communication Module, Consent Manager, and more.
Adopting an End-to-End Digital First Strategy
Jocata's Digital Lending Platform (DLP) is available in both Enterprise and SaaS flavors. It is a fast and adaptive digital ecosystem handling millions of transactions per month, delivering solutions that drive business growth, streamlining operations, providing risk-adjusted insights, and ensuring regulatory compliance. It is revolutionizing the lending landscape by delivering an end-to-end, integrated, and digital customer journey from Customer Onboarding to Credit assessment, Disbursal, and Payments thereby accelerating business growth and financial inclusion.
Industry-Recognized Low-Code Platform
Being a low-code platform, Jocata DLP allows scalability with reusable UI elements by mirroring existing processes to expand across regions and verticals without spending significant time and money. Moreover, it also enables a swift go-to-market, reduces credit intelligence time by allowing users at Financial Institutions to create, modify rules and change thresholds to get a policy live within days and provides a strong foundation for Financial Institutions to address customer needs in an agile and low-cost manner.
Partnership-based Lending
Aggregators and marketplace business partnerships for a bank are key to expanding its footprint while keeping costs low. Jocata understands that and provides features for partner onboarding & management. With standardized APIs, product/program-based workflows, and policies, it helps banks go live with partners within two weeks.
AI-powered Credit Decisioning for Lenders of the Future
As financial institutions are transitioning to digital channels to create personalized solutions for customers, adopting AI/ML-based deep behavioral and predictive analytics gives them a competitive edge. Jocata offers an AI-based credit risk management product suite for both MSME and Retail customer segments.
MSME Credit
Banks and NBFCs are prioritizing the digital transformation of SME lending as a key focus area. MSMEs which contribute nearly 30 percent of India’s GDP and are at the core of India’s growth story also have a constant need for the right capital. Traditionally, it has been difficult for lenders to confidently lend to these segments due to lack of reliable data, legacy models of credit underwriting, and
the high cost of acquisition and servicing in the physical world. Jocata solves each of these problems in a unified fashion through its platform integrated with the full India Stack and FinTech APIs.
Jocata launched SME DNA that uses advanced analytics techniques such as AI/ML on consent-based GST data to construct a risk score that truly captures the quantitative business performance as well as qualitative & behavioral aspects of a small business thus, aiding underwriters with enhanced ‘Go/No Go’ decision within 2 minutes. The score has been back-tested with over 25,000 MSMEs through several partner banks who have found it extremely useful in their onboarding, assessment, and monitoring decisions.
Apart from making lending paperless, digital and reducing TAT, GST analytics, specifically Jocata SME DNA, can spur innovation in credit delivery models to meet the unique needs of MSMEs through targeted and contextual products like cashflow-based lending, embedded finance, BNPL, sachet loans, GST bridge loans, and so on. This can significantly reduce the credit gap and encourage MSMEs to be a part of the formal credit system.
Prashant Muddu, Managing Director & CEO
Retail Credit
Jocata brings a new perspective to retail customer assessment with its powerful AI/ML-based Retail Persona Score. It creates personas based on different risk profiles by analyzing bank transactions of individuals such as income, recurring inflows & outflows, financial asset expenditure, investment income, and more, thus providing lenders a complete picture of the individual’s financial situation with income, fraud, and risk insights. Additionally, it empowers the lender by helping them acquire customers based on their risk appetite, monitors individual customers and portfolio for opportunity & risk signals, and create smarter pre-approved bases for product targeting and segmenting customers to drive efficient marketing campaigns.
Customer Success Story of India’s Leading PSB
In 2020, Jocata partnered with one of the largest Public Sector Banks in India and significantly transformed its digital lending program. Jocata’s team deeply engaged with them for a multi-year program providing a unified and integrated digital lending platform for 18 products and more than 50 variants across three segments namely Retail, MSME, and Agri. Jocata’s digital lending platform enabled a frictionless customer experience by supporting loan applications via customer DIY and branch-assisted journey. Moreover, it allowed the bank to aggressively chase its distribution strategy through embedded finance models.
The entire lending process is automated and accelerated with seamless integration between all functionalities from digital customer verification and authentication to consent management, to assessing creditworthiness and financial health of a customer. Also, from internal bank operations and processes up to disbursal and loan management, it helps the bank to easily ‘plug into’ non-financial platforms and provide Banking-as-a-Service (BaaS) securely and at a large scale. To date, the bank has successfully processed 60,00,000 plus applications and disbursed more than 10,00,000 loans.
Conclusion
Jocata has become an indispensable partner for lenders who are transforming their business models and embracing innovation. The company has always considered itself as not just a technology provider but a business enabler and a risk intelligence platform. Its team follows an agile methodology by constantly collaborating with the bank stakeholders, measuring and course-correcting at every stage of the implementation. The company helps them launch innovative solutions that comply with RBI’s regulations while simplifying the lending process for customers and enabling banks to focus on their business.
India has been Jocata’s home market and by far the most exciting in terms of digital revolution. Simultaneously, it is expanding in nearby geographies which are ripe for growth. ASEAN and the Middle East are two of its immediate focus markets in the future. It is also working with large IT and consulting partners to introduce its offering in distant geographies such as North America, Latin America, and the EU. Jocata has very ambitious growth plans over the next five years, based on a sustainable and sound business model. Moving forward, the company will continue to create consistent value for its stakeholders by investing in products and being aligned with its customers and their business needs.
Jocata launched SME DNA that uses advanced analytics techniques such as AI/ML on consent-based GST data to construct a risk score that truly captures the quantitative business performance as well as qualitative & behavioral aspects of a small business thus, aiding underwriters with enhanced ‘Go/No Go’ decision within 2 minutes. The score has been back-tested with over 25,000 MSMEs through several partner banks who have found it extremely useful in their onboarding, assessment, and monitoring decisions.
Jocata’s digital lending platform brings the entire stack from customer onboarding to credit assessment, disbursal, & regulatory compliance in one lowcode platform that can be deployed on the bank’s infrastructure or cloud partners
Apart from making lending paperless, digital and reducing TAT, GST analytics, specifically Jocata SME DNA, can spur innovation in credit delivery models to meet the unique needs of MSMEs through targeted and contextual products like cashflow-based lending, embedded finance, BNPL, sachet loans, GST bridge loans, and so on. This can significantly reduce the credit gap and encourage MSMEs to be a part of the formal credit system.
Prashant Muddu, Managing Director & CEO
Retail Credit
Jocata brings a new perspective to retail customer assessment with its powerful AI/ML-based Retail Persona Score. It creates personas based on different risk profiles by analyzing bank transactions of individuals such as income, recurring inflows & outflows, financial asset expenditure, investment income, and more, thus providing lenders a complete picture of the individual’s financial situation with income, fraud, and risk insights. Additionally, it empowers the lender by helping them acquire customers based on their risk appetite, monitors individual customers and portfolio for opportunity & risk signals, and create smarter pre-approved bases for product targeting and segmenting customers to drive efficient marketing campaigns.
Customer Success Story of India’s Leading PSB
In 2020, Jocata partnered with one of the largest Public Sector Banks in India and significantly transformed its digital lending program. Jocata’s team deeply engaged with them for a multi-year program providing a unified and integrated digital lending platform for 18 products and more than 50 variants across three segments namely Retail, MSME, and Agri. Jocata’s digital lending platform enabled a frictionless customer experience by supporting loan applications via customer DIY and branch-assisted journey. Moreover, it allowed the bank to aggressively chase its distribution strategy through embedded finance models.
The entire lending process is automated and accelerated with seamless integration between all functionalities from digital customer verification and authentication to consent management, to assessing creditworthiness and financial health of a customer. Also, from internal bank operations and processes up to disbursal and loan management, it helps the bank to easily ‘plug into’ non-financial platforms and provide Banking-as-a-Service (BaaS) securely and at a large scale. To date, the bank has successfully processed 60,00,000 plus applications and disbursed more than 10,00,000 loans.
Conclusion
Jocata has become an indispensable partner for lenders who are transforming their business models and embracing innovation. The company has always considered itself as not just a technology provider but a business enabler and a risk intelligence platform. Its team follows an agile methodology by constantly collaborating with the bank stakeholders, measuring and course-correcting at every stage of the implementation. The company helps them launch innovative solutions that comply with RBI’s regulations while simplifying the lending process for customers and enabling banks to focus on their business.
India has been Jocata’s home market and by far the most exciting in terms of digital revolution. Simultaneously, it is expanding in nearby geographies which are ripe for growth. ASEAN and the Middle East are two of its immediate focus markets in the future. It is also working with large IT and consulting partners to introduce its offering in distant geographies such as North America, Latin America, and the EU. Jocata has very ambitious growth plans over the next five years, based on a sustainable and sound business model. Moving forward, the company will continue to create consistent value for its stakeholders by investing in products and being aligned with its customers and their business needs.