How Our Application Helped A P2P Lending Company With Customer Acquisitions?

A P2P lending company Bank2Grow helps borrowers meet validated investors to make loans accessible and convenient. They wanted Coruscate to help them build a tech-based solution that could make the whole process user-friendly, automated and easy for both parties to access and complete.

 

Coruscate developed a simple marketplace solution that increased convenience.

01

The Broad Requirements

For the Borrower

  • The banks took a long time to check the documents, validate their borrowers, and finally process the loans. Bank2Grow wanted to reduce the overall time taken to process the loans to the borrowers.
  • The lender-borrower system was absent in the market, as there were no verified lenders apart from the bank who would charge a nominal interest rate and offer loans for a defined period. They wanted to correct this problem by introducing lenders validated by them.
  • The process of checking the documents and validating the borrower was a lengthy one. The client wanted to make it convenient and easy for the salaried people in need of loans.

For the lender

  • They wanted to make loans an effective investment segment for the people with a certain amount of money.
  • They needed a system that would validate both borrowers and lenders, and document their transactions.

Other issues

  • They wanted a system that would standardize the lending rates across the different loan solutions.
  • The system should be able to record all the transactions, generate reports and make it easy for the company to check on individual transactions, interest rates etc. at a later stage.

02

Our Bank2Grow P2P Marketplace Solution

We proposed a P2P marketplace for Bank2Grow where the lenders and the borrowers can meet, communicate and finalize the transaction. This marketplace would validate the lenders and the borrowers, define checklists for documentation, and ease out the work for both parties. The entire responsibility will lie with the application.

The Proposed Features

Primary Marketplace: The borrower can list out their loans, and the lender will know the different types of loans that people are looking out for. Based on the amount they are ready to lend, and the grade that has been given to the borrower, the lender can decide who they want to invest in. Investors can invest in loans using an auto-invest feature. Investors can save their preferred criteria of Borrowers, select the ticket size they wish to invest and submit their auto-invest request. Based on the preference criteria, the system invests in such loans on behalf of the investor directly.

Validation: The borrowers need to register and fill out a form stating their loan requirements and the EMI payable. The Bank2Grow will validate the borrowers based on their CIBIL score combined with a pre-defined algorithm defined by the company. The borrowers are assigned a grade, which validates them for the lender. The system runs algorithms, which takes huge amount of data as parameters, assess the data and proposes a final loan offer to the borrower.

 

Prepay: The system checks for prepayment, and allows it for certain borrowers who qualify based on the pre-defined criteria

Top-up: The system will define the amount that can be availed by the borrower. In case, the borrower wants to borrow only half of the allowed amount, they can top it up later through the system. For instance, if the borrower has received an approval for 3Lakhs, and they have borrowed only 1 lakh, they can receive up to 2 lakhs as top-up. Extensive data and document management is handled by the system. The process of using Excel is substituted through the system.

 

Secondary Marketplace: This is the place within the system where investors can meet other investments and transfer the loans. Suppose, an investor does not want to continue with the loan they have offered, they will need to meet a validated lender in the secondary marketplace and transfer their loans

 

Verification: The client’s backend has a team that verifies the documents manually and updates the system with the final outcome. In case some documents remain unverified, the system will notify the borrowers.

 

Payments: There is a payment module that manages the transactions and payments between the investors as well as between the investor and the borrower.

03

Result

  • There has been an increase in the number of borrowers by several manifolds.
  • The customer acquisition rate has increased by 2x times for the client.
  • The client generates at least 100 queries in a week.