Urgent Financial Inclusion Demand in India: UMMEED Housing Finance Accelerates Credit Processes with ACTICO

UMMEED Housing Finance is transforming its complex lending processes. In doing so, the company wants to enable better and faster financing – including financially excluded and underserved populations.  This accelerates their financial inclusion. With the aim of reducing the processing time of its applications from several weeks to just one or two days, the financial services provider selected the advanced ACTICO Credit Decision Platform.

UMMEED Housing Finance provides asset-backed loans to people who are less well-off who often do not have the necessary creditworthiness or collateral. Thus, they apply for joint loans. These loans increase security for the lender, as co-borrowers and guarantors ensure the repayment of the loan with their own creditworthiness.

 

Complex application processes

The decision-making processes for joint loans are highly complex and time-consuming. Indeed, lenders must consider many more people and factors than in conventional lending processes. Until now, this approach has posed an automation challenge.

 

Overcoming Automation Challenges

UMMEED therefore carried out the extremely complex credit check mainly manually – with many process deviations and based on experience rather than true to the process. Now the lender is automating the complex application process with the ACTICO Credit Decision Platform and increasing the degree of automation from around 35 percent to 90 percent. This is possible because the credit management team can configure and deploy the checking logics themselves from scratch – a huge advantage given the numerous scenarios, customer segments and offers.

“The implementation of Business Rule Engine (BRE) through the ACTICO Credit Decision Platform has significantly transformed our lending operations, particularly in automating our policy norms and accelerating decision-making processes. With this implementation, our company’s credit policies and rules have been seamlessly automated. This has minimized the need for manual intervention in evaluating loan applications, ensuring that each decision adheres strictly to predefined criteria. The engine evaluates complex rules and criteria in real-time, allowing us to provide instant decisions to our customers. This speed is crucial for maintaining customer satisfaction and competitiveness. Given our focus on self-employed customers with informal incomes, the BRE has been instrumental in ensuring that these customers are assessed quickly and accurately,” explained Aditi Paliwal, Chief Operating Officer of UMMEED Housing Finance.

 

Success Through Flexibility and Efficiency in Line With Regulations

Because loan applications will be processed faster in the future and demand is very high, the bankers are now expecting huge growth. And ACTICO has another strength for the turbulent market environment: “The flexibility of the ACTICO BRE allows us to implement policy changes swiftly. This agility means we can respond to market demands and regulatory changes promptly, ensuring that our offerings remain relevant and competitive. This consistency has improved the overall compliance with regulatory requirements and internal guidelines,” noted Aditi Paliwal.

 

High Customer Demand, Fast Processing – Great Growth!

As loan applications will be processed more quickly in future and demand is very high, the bankers are now expecting enormous growth.

“By automating routine tasks and complex decision-making processes, the Business Rules Engine has freed up our staff bandwidth to focus on more important aspects of underwriting. This shift has led to better utilization of our workforce and increased overall productivity,” emphasized the Chief Operating Officer of UMMEED Housing Finance.

 

Access to financial services integrates people into society

“By combining UMMEED’s deep understanding of the needs of underserved communities and ACTICO’s technological expertise, we are enabling marginalized people to have more equitable access to financial services. This strengthens our society!”, explains Vishwas Trehan, Director of Sales at ACTICO.