“How Novel Patterns is leveraging Advanced AI & ML techniques to pro-actively save tons of money for Banks and reduce TAT for Loan disbursals’’
The Indian Fintech market is currently valued at $31 Bn and is expected to grow to $84 Bn by 2025, at a CAGR of 22%. The Fintech transaction value size is set to grow from US$ 66 Bn in 2019 to US$ 138 Bn in 2023, at a CAGR of 20%.
According to the RBI, bank credit and deposits stood at Rs. 108 trillion (US$ 1.5 trillion) and Rs. 149.6 trillion (US$ 2.1 trillion), respectively, as of March 12, 2021. Extending credit and Interest income has always been one of the core revenue streams for Banks, NBFCs and other Financial Institutions.
There was a time when a home loan approval with time to cash would easily take 25–40 days. With the current advancement in technology, the overall TAT has come down drastically but is still manual intensive and involves huge operations cost. “According to Livemint article dated 27 May 2021, the average lag between the date of occurrence of frauds and their detection by banks and Financial Institutions was 23 months during 2020–21. “
Realizing the gap where current industry players have solved the business problem with rudimentary tech solutions but not made big investments in underlying tech upgrade to leverage the latest stack available, Amit Trivedi and Abhishek Singh commenced operations in 2017 to leverage their combined experience of almost 35+ yrs in data science area to leverage Advance AI & ML algorithms along with Document ontology algorithms to build a use case of Bank Statement Analysis for automation of credit underwriting process of a loan lifecycle.
Novel Patterns then ventured out with a roadmap to automate complete underwriting by covering ITR and GST analysis and other income documents.
The core reasons why Novel Patterns was able to replace existing industry leaders in this space of Bank Statement Analysis is because of superior service quality, lesser rejection rates with documents, wider coverage in terms of banks and financial institutions, very robust Fraud detection of and aggressive pricing.
Making even an Rs.1000 loan profitable is the mission statement the company and the founders started off with. During the Pandemic onset, Novel Patterns also realized the need for platforms that could help people avoid physical travel and perform onboarding and client servicing processes remotely. Hence, they set in motion the development of their video-based platform MyConCall which can be used for Video KYC, Personal Discussions, vendor empanelment and document sharing. This helped bank personnel to cover the last mile without any physical travel with all artifacts including video interaction recording, KYC documents capture, business validation rules, questionnaire responses and location stored in electronic streams and available from an audit perspective as well. The platform also helped in the overall initiative of complete digital and paperless processing of loans across all verticals.
Both the platforms for Novel Patterns have been designed from the ground up without the use of much external components as it also satiates the product enthusiasts in each of the firm’s team members. Currently heading the Sales & Marketing, Anish Kumar also comes up from a similar background of helping leading Banks across the globe streamline their asset and liability processes for almost 7+ yrs. Novel Patterns started out with its first customer in 2018 and has been on exponential revenue growth month on month since then.
Currently, they are serving 40+ Banks and Financials Institutions and adding value in their day-to-day processes. Almost Zero attrition rate in terms of employee retention and Customer retention, speaks volumes of the company culture and the processes being followed with every aligned person becoming part of the overall growth journey and getting the ultimate pride and gratification is looking at so many people using the platforms and able to add value through technology.
Novel Patterns acts as Strategic Partners and not just another vendor and are very open to working with leading Banks and NBFCs to configure solutions as per business requirements and not limit opportunities because of technology or platform constraints thus becoming the ideal technology partners.
In their effort to address and add value to the complete banking industry — Retail, corporate and Investment Banking, the products and the roadmap is aligned to leverage NLP and NLG tech stack for very advanced and user-friendly platforms supporting conglomerates in achieving their digital initiatives even faster and playing a major role in the exponential growth.