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Whitepaper
Embracing risk:
How lenders can turn risk into a growth engine
Read the whitepaper to know:
- Why current risk assessment models inhibit profit margins
- How interest rates can be calibrated for risk profiles
- How FinBox can lift segmentation portfolios for lenders
- Why pricing in risk can lead to financial inclusion
Executive Summary
Lenders can monetize risk to offset protracted periods of muted profitability. With alternative data and advanced analytics, they can open loan books to riskier borrower cohorts, even new-to-credit customers, factoring in an exhaustive risk spectrum with dynamic interest rates.
This whitepaper makes a case for risk as a growth engine and how lenders can price risk in financial products.
Profitability for banks will have to be driven with macro prudential risk assessment policies, spearheaded with technology and alternative data, that factor in not just individual risks, but also industry, sectoral and market risks.
Rajat Deshpande, Co-Founder and CEO, FinBox
As lenders open loan books to new-to-credit borrowers, they will need to realign risk assessment methodologies. A greater play for alternative data, sourced and analyzed in real time, is the way forward. The lender-borrower relationship deepens beyond loan disbursement, and that revolutionizes the conception and consumption of credit products.
Authors' Bio
Rajat Deshpande,
Co-Founder and CEO, FinBox
Rajat is a Fintech specialist and a startup enthusiast who started FinBox along with his Co-Founders with a mission to lay out digital infrastructure for alternate finance solutions. Under his leadership, FinBox has built multiple products in the Embedded Finance and Big Data credit analytics spaces. FinBox has enabled over 16 million lending decisions in India and SE Asia. In his prior stints, Rajat was associated with the global consulting firm ZS, Citigroup and GoPigeon Logistics as Head of product.
He holds a Dual (BTech+MTech) degree in Mechanical Engineering from IIT, Bombay.
Anant Deshpande,
Co-Founder, FinBox
Anant is a Co-Founder of FinBox. He is passionate about making credit inclusive and affordable for India’s self-employed & micro entrepreneurs. At FinBox, Anant leads lending and builds credit origination systems powered by alternate data (device data, third party data, etc) and traditional data (credit bureau).
In his earlier role at Home Credit, he drove Big Data based loan underwriting of a $2B consumer loan portfolio. Anant has previously been associated with global consulting firm ZS Associates & with TransOrg Analytics where he owned P&L and productised analytical consulting. He is a regular marathoner and holds a B.Tech in Chemical Engineering from Nagpur University.
Chitwan Kaur,
Content Specialist, FinBox
Chitwan is a content specialist at
FinBox involved in building thought
leadership and responsible for our
social media. Prior to FinBox, she
worked at CNN-News18 where she
manned the politics and breaking
digital news desks. She holds a
degree in English Literature from
Delhi University and a post-graduate
diploma in journalism from the Asian
College of Journalism.
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