How Finnable Used CredAvenueΓCOs Co Lending Marketplace to Reduce TAT by 3x to Launch New Schemes in Collaboration With Co Lenders

Founded in 2018, Finnable is a fintech start-up that provides instant personal loans to the salaried class. A unique differentiator for Finnable is their data science and collections capability, enabling them to disburse high ticket loans within a few hours.

The company was built from the ground up by Nitin Gupta, Viraj Tyagi, and Amit Arora, who bring years of financial expertise to the table. Finnable provides a hassle-free and paperless loan service from the comfort of people’s homes. The process is entirely digital, and there are no hidden charges levied on the customers. Finnable allows flexibility to choose the repayment option and select an EMI plan that best suits the customer.

Finnable is revolutionising the lending system in India, making credit readily available to the salaried class with a particular focus on low earners. This innovative fintech aims to remove inequalities that make the credit-providing system regressive and unfavourable for low-income groups. Over the past 2 years, the company has disbursed more than Rs 300 crores as loans to customers. Their current loan book stands at an impressive Rs 200 crores as of December 2021.

The Challenge

The team at Finnable was posed with the following challenges: 

  • Finding lenders that matched their preferences. 
  • Discovering the right lenders to partner with was not an easy job. This further made collaboration with multiple lenders in a short period an almost impossible task
  • Long-drawn, time-consuming, and resource-intensive processes.

As a lending platform with an NBFC license, Finnable required separate one-on-one integration every time they integrated with a new lender. This led to an overall higher integration time and made the process cumbersome. 

  • Reconciling the collections and managing the split between active and passive lenders was also an uphill task that required more hands and increased the overheads while managing several transactions led to a delay in the process.
  • The tech bandwidth also choked as more clients started using the platform. This hindered Finnable’s focus on building and improving their product.

Finnable decided to give Yubi’s YubiCo.lend marketplace a chance to overcome all these issues. 

The Solution

Onboarding on Yubi resolved many of their problems by offering a fully integrated digital co-lending platform for the originator and the lender.

  • Yubi’s YubiCo.lend service allowed Finnable to access a powerful dashboard. 
  • The unified user interface made it possible to discover 15+ lenders with whom they could align their services. It is now live with multiple lenders on the platform and is in the advanced stages of discussions with many. 
  • The platform gave them the freedom to set loan requirements as per their convenience and enabled Finnable to diversify and manage their loan portfolio. 
  • Yubi’s one-time integration eliminated the inconvenience of getting separate integration with every lender for each partnership Finnable executed.
  • To add to this, the platform also automated reconciling the collections and managing lenders. 

The Result

With a model that provided multiple avenues for originators to integrate with lenders, it became easier for Finnable to increase lending speed to customers. The effort put in by Finnable to switch between partners was also reduced significantly. It allowed them to look at competitive interest rates and alter loan requirements as they deemed fit.

The company was able to reduce turnaround time by 3x to launch new schemes in collaboration with co-lenders. 

Finnable was further able to ease the disbursement process through integrated payment gateways and manage the split of collections data through Yubi’s developer-friendly API-driven platform. Nearly 40% of its total disbursements are now routed through the Yubi platform.

The platform’s credit rule engine enabled lenders to amend the credit filters quickly. Thus, for any change in the credit policy at Finnable’s end, consequent changes could be quickly made.

The time interval for amount disbursal was also reduced. All this was accomplished without impacting the journey of the end-customer, who is now able to avail loans faster than ever before.

overview-co-lending

Co-lending Industry and Product Insights

YubiCo.lend Annual Report FY 21-22

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