A Lender to New-to-Credit Millennials

CASHe launched in 2015 with the goal of being a credit-led Fintech and making credit available to millions underserved millennials who are new to credit. By evaluating credit risks using our proprietary algorithms, eliminating manual processes, and leveraging technology to assess loans, we can provide faster credit and other financial products to this group," said V. Raman Kumar.

The Social Loan Quotient, the startup's proprietary AI and ML-based algorithms assesses a borrower's risk based on their social and mobile data footprints. The model assesses the borrower's ability to repay and their goodness quotient, which goes beyond the traditional credit risk metrics. CASHe can lend to an individual who has no prior experience in the Indian financial sector, but whose SLQ engine determines that they have a reasonable tendency to repay. The company will lend to young professionals with a credit rating of near-prime, subprime, or no credit history.

Kumar believes the key to keeping customers in fintech is to offer a seamless experience to customers and to provide them with industry-first value-added service that helps them achieve their financial goals.

Kumar says, "We retain and gain customers by providing a variety of value-added service options such as Travel Now Pay Later on IRCTC. The QR-based offline method of payment has been accepted by many retail merchants in India. We offer our customers house rentals via a credit card, as well as an innovative rewards program called GOLDe. This is very popular among our users. We also offer wealth management services to our users through the acquisition of Sqrrl. This WealthTech platform offers services such as Mutual Funds and FDs. It also provides SIPs, Goal-based investments, roundoff investments, and SIPs. This has led to an increase in customer loyalty and, more importantly, helped our customers make the best financial decisions for their financial well-being.

The startup has made money for four years in a row. Kumar says that profitability involves validating a business model, building a customer base, managing cost, maximising revenue streams, expanding our business, and scaling it.

"Also being in a regulated sector gives us the opportunity to have a positive impact on our society by providing services that meet underserved community needs and promoting financial integration."

The company, which is four years old, has adopted a number of strategies to prepare it for future growth. It also relies on its current services. We believe that tech-led new-age lending companies should offer a variety of loan products and service that will appeal to various customer segments. It could involve creating new loan products, or partnering up with other companies in order to provide complementary financial services," Kumar concludes.