Co-Lending-Product-Update-May-2022

Greetings from Yubi!

We hope you’re having a great experience with Yubi. We’ve added many fantastic features to YubiCo.lend, and the product sees and drives significant improvements that you will be as excited as we are.

Let’s deep dive into some of the top updates.

1. Customer Delay Penal Invoice

The problem

When a customer cannot pay the instalments for a loan they have taken, the investor needs to charge an additional interest as a penalty for the delay. The investors and originators had no means of settling the interest for payment delays until now.

How does the product update solve the problem?

With the latest product update, the originators and investors will be able to configure the customer delay penal interest. As a result, the investors can generate a penal invoice for delays in loan EMIs. And, investors and originators can negotiate on a grace period offline.

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In the lack of a grace period, the investors or originators can calculate the rate of interest for the penalty.

The system will calculate the penalty for the number of days between the EMI payment date and the date the customer made the payment.

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Customer delay penal invoices can also be generated in partial payments or loan foreclosure.

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2. Originator Delay Penal Invoice

The Problem

Just as EMI payments can get delayed by the customers, there can be delays in originator partners making payments to the investors. The investors could not settle the interest for payment delays caused by the originator until now.

How does the product update solve the problem?

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The latest update allows investors to configure the originator delay penal interest.

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The penal invoice can be generated for any delay in making the EMI payment in the ‘penal invoice (originator delay)’ dropdown.

The penal invoice consists of details like Loan ID, instalment number, principal paid, interest paid, investor transfer date, and penal interest days. Etc.

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If the investor transfer date is unavailable, the investor can now generate an error report for detailed status.

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The system can automatically calculate the interest based on the days the EMI payment was missed. The latest update will also allow investors to configure the grace period offline.

3. Bank account name comparison

The problem

There were multiple issues with the disbursements being made out by Yubi. This was mostly because of a lack of validation of the disbursement bank account and bank name. This hampered the transfer of the loan amount to the end customers.

How does the product update solve the problem?

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After the latest update, the Yubi team will be able to make validations for Name only when the bank account is active.

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The Yubi team will validate the bank account name when the bank account is active.

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This is done via the IDFY name match algorithm, which provides a score for the bank account name for the originator. This code score is displayed to the investor for making disbursements.

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An investor has the liberty to decide the threshold for the name mismatch to approve or stop the disbursement of the loan amount. The name match score ranges from 0 to 5. When the name match score is greater than the threshold approved by the investor, the loan will be made eligible for automatic disbursement.

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When the name match score is lesser than the threshold approved by the investor, the loan will remain in the agreement signed but not be disbursed. In such a case, the investor will have to approve the loan manually, or the originator will have to update their bank account details for the name match score to meet the investor threshold. This will be done after the error is automatically communicated back to the originator.

Moreover, the current update will allow investors and originators to filter their loans based on the name match score for enhanced results.

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4. Retry Razorpay Fund Account Failure

The Problem

Technical glitches affected the capability to retry failures in the disbursement done via Razorpay. The lack of self-serve ability to make the same required manual effort via support tickets.

How does the product update solve the problem?

Sometimes, the Razorpay contact or fund account creation fails. The latest update ensures that the reason for this failure is communicated to the users.

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This can be identified by hovering the mouse over the ‘information’ icon on the UI page.

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Investors can retry Razorpay fund account creation. After clicking on the ‘retry’ button once, the retry button will be disabled, and the user will have to wait for another 30 minutes.

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Such loans are prohibited from the system from being disbursed until the Razorpay fund account is created and the account information is available.

5. Delink wallet reconciliation for disbursal

The Problem

The process of wallet reconciliation for the disbursement of loans was a time-consuming task. This increases the turnaround time to disburse loans linked to wallet reconciliation.

How does the product update solve the problem?

The process of wallet reconciliation has been delinked from the disbursal process. This means that there is no longer a need for wallet reconciliation for a loan to move into the ‘Disbursed’ state.

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Wallet reconciliation happens offline in a FIFO manner, subject to the availability of funds.

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We hope you start making the most of these features and enjoy using them as much as we enjoyed developing them for you! We have some important and major feature releases in the pipeline. Stay tuned for more!

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