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Middle Ground – DLP Vs ULI
Srinivas Naik & Team atyati
The tsunami effect of mobility in the era of Digital Transformation has been a remarkable journey. In addition to the e-Commerce domain, another sector that benefitted from this disruption was Banking. A key driver of this disruption in the banking sector has been the implementation of Open Banking regulations, initially introduced by the European Union. However, taking to the masses was majorly prospered in India. The transition of APIs (Application Programming Interfaces) from ISO to XML and then to JSON payloads rediscovered the popularity of Open Banking. Coupled with watertight security tools and legal compliance with regulatory objectives, digital transformation has gained significant momentum and is set to continue for the long haul.
At Atyati Technologies, we take a foundational approach to solve business challenges, ensuring thorough understanding of the problems through an enterprise-level perspective. Our key strategies includes:
- Optimal Sizing: We recommend precise configurations for hardware-intensive Financial Inclusion Gateways (Switches).
- Decoupled Architecture: Our Decoupled approaches during construction phase with appropriate connectors. Non-functional requirements help us plan and future-proof our design.
- Domain Expertise: Our in-depth industry knowledge helps in anticipating regulatory concerns, allowing us to take proactive and decisive actions.
- AI-Driven Solutions: We employ well contemplated demarcation methodology while adopting AI (artificial intelligence) backed techniques or through BREs (Business Rule Enginez)
- Ganaseva: Our Ganaseva Hub adapters, built on plug-in/plug-out principles, act as a quasi-Account Aggregator (AA) model to support seamless integrations.
- ETL Process: Our ETL pipeline, operational from day one, curates OLAP datasets to drive objective-focused analytics for SMEs, bankers, and customers.
- Flexible Workflows: Our loosely coupled workflows offer flexibility in configuring new products.
- Design Principle: We follow the open for extension, closed for modification principle to support extensibility and to enhance localization capabilities.
- Low-Code Approach: Our low-code strategy expedites product development, decreases reliance on production support, and shortens turnaround times.
The Digital Lending Solution, built on the design principles outlined above ensures that our architecture is both robust and reliable, effectively supporting the entire end to end Loan Origination System (LOS) journey. Tailor made Underwriting process classifies Retail, MFI, MSME products are subjected to relevant appraisal lens to mitigate risk post facto. Digital dashboards/MIS and Notifications for different entitlements like bank users, partners and customers are updated well in the eco-system. Inhouse middleware is capable of orchestrating and connecting different systems and protocols, allowing it to exchange information with data abstraction at sight.
Invariably, all above touchpoints are quite relevant in ULI(Unified Lending Interface) life cycle to achieve quick TAT, also ensuring the portfolio quality. Unlike DLP, ULI fulfils prima facie customer-oriented journey and financial institutions become sheer FIP (Financial Information Provider).
Borrower has the liberty to choose products and bank and get the sanction in no time. Hence, it is inevitable to compute those data in real-time backed by Al_Algos to recommend underwriters while deciding go/no-go. Reinforcement learning models improved our predictions based on the experience which helped achieving accuracy to greater percentile.
Incidentally, DLP augment pseudo-LOS journeys which are bank centric. However, combination of open API, Account Aggregators with holistic application design, placed atyatis platform to achieve ULI along with DLP. In contrary to DLP, ULI is fundamentally customer centric, naturally reminds UPI success story. Though it s a significant sail required for ULI on UPI path, at the same time not too far to flourish as well.
Well, appetite of Bank/NBFC/SFBs is largely on lending retail products to urban areas, off late this trend started witnessing a drift. According to CAFRALs (Centre for Advanced Financial Research and Learning) researchers, noted that despite the recent growth spurt in credit to rural areas, total retail credit to rural areas was merely 25-35 per cent of the total credit. RBIs strategy to narrow down urban-rural divide in access to credit by taking few steps like fostering NBFC growth; branch expansion policy as a tool; and BCBO setups were incomplete without robust technology beneath. This paved way to rethink on the tech-budget by Banks, NBFC, Regional Rural Banks (RRB), Co-operatives to upgrade/modernize the stack. Essentially, atyatis solution manifested to cater such avenues to boost Open API culture. This was possible with our strong belief in the compliance mechanics while moving data between multiple endpoints. Data security policies adopted as a practice rather than tick mark in our ecosystem which catalyse fulfilling our ambition to become seasoned campaigner for longer journeys in this space.
