CredPool Yubi Co.lend Product Update: December, 2021

KYC or ‘Know Your Customer’ has become non-negotiable when it comes to financial services and payments. It helps verify a person or organization’s existence and sanctity. KYC norms have been critically important for onboarding both banks and NBFCs on YubiCo.lend’s marketplace. However, there was one small hiccup that was making manual KYC verification a challenging task.

image 4 Yubi Co.lend Product Update: December, 2021

The Gap in KYC Protocols Management

In the existing scenario, the investor’s operations team had to go about manually verifying the details of the loan applicant, co-applicant and its guarantor. They also had to verify that the business information provided for the loan application is true. All of these checks are mandatory before approval of the loan application.

The bank’s operations team had to spend hours verifying all these details by checking if the data supplied matches the details available on relevant Government portals.

This process is time-consuming and cost-intensive. As the volume of disbursals increase, banks might need to hire larger teams just for the purpose of KYC linked data gathering and verification. Meanwhile, the borrower has to wait on the co-lenders. There is also the possibility of human error or oversight, which can prove costly for the co-lenders. In fact, burdening team members with a higher volume of trawling through Government websites and searching for verifiable data is bound to result in mental fatigue and loss of focus for the employees, beyond a certain manageable volume in a day.

Yubi’s New KYC Upgrade

The new KYC feature that has been enabled in Yubi’s latest update allows investors to verify the KYC details of the applicants, co-applicants and guarantors such as their PAN, Voter ID and Driving License. The brand new KYC feature will also enable banks to verify the business-related information such as the Business PAN, CIN and GSTN of companies intending to opt for co-lending loan products.

image 3 Yubi Co.lend Product Update: December, 2021

image 2 Yubi Co.lend Product Update: December, 2021

image Yubi Co.lend Product Update: December, 2021

This is handled automatically by a robust system, meaning there is no element of human error or fatigue in the equation. Banks gain access to the details fetched from the government databases for PAN, Driving license, Voters ID, Business PAN, CIN and GSTN from the corresponding loan on the Yubi marketplace. YubiCo.lend also matches the details shared on the loan application against the information fetched from the external databases so that investment banks are able to easily identify the anomalies and take the relevant action.

image 6 Yubi Co.lend Product Update: December, 2021

Yubi’s co-lend marketplace has added yet another useful feature for clients who sign up as Co-Lending partners.

image 5 Yubi Co.lend Product Update: December, 2021

In fact, this feature is a huge incentive for banks and other lenders to come together and co-lend using Yubi.

The new KYC feature automates a large chunk of the data gathering and verification and can thereby improve the productivity of KYC teams, reduce input costs linked to KYC protocols, and accelerate borrower onboarding.

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Co-lending Industry and Product Insights

YubiCo.lend Annual Report FY 21-22

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