India's lending landscape is intricate, shaped by diverse population, complex regulations, and limited financial literacy. Currently, heightened emphasis on digitisation and financial inclusion has empowered NBFCs like Piramal Finance in expanding to more nooks of India. Piramal Finance have emerged as key providers of credit to the underserved and unserved in India, although they grapple with elevated risks due to lending to borrowers with limited or no credit history.
To address these challenges and enhance risk management, businesses turn to Business Rule Engines (BREs). BREs automate policy creation and management by enabling policies to be defined in natural language, translated into machine-readable code, and implemented consistently and accurately.
This document explores the creation of the BRE - Policy Engine, & Risk Analyser - APMS, for Piramal Finance.
The former comprehensive platform empowers Piramal Finance to efficiently create, simulate, approve, deploy, maintain, and scale its lending policies. The Policy Engine priorities user-friendliness, incorporating existing user journey approach and seamless integration with Piramal Finance's existing systems, ensuring easy access and utilisation of policy data across the organisation. Comprising three modules—Parameters, Policies, and Simulation—the Policy Engine allows users to define evaluation parameters, create and manage loan policies, and simulate policy impact on loan applications. It streamlines policy management, reduces effort, and enhances policy consistency, ultimately serving as a safety net for Piramal Finance's expansion into new market segments.
Additionally, Automated Portfolio Monitoring System (APMS) employs natural language processing and machine learning to monitor real-time loan data, identifying potential risks and opportunities. This valuable information enables Piramal Finance to make informed decisions, further improving its lending operations and facilitating expansion into untapped niches.
Together, the Policy Engine and APMS bolster Piramal Finance's lending operations, providing efficiency, risk management, and data-driven decision-making capabilities, positioning the company for growth and success in India's complex lending ecosystem.