RupeeCircle is the new age Peer-to-Peer (P2P) lending company that connects creditworthy borrowers with investors looking for attractive returns on their investments. Their endeavor is to provide last mile credit access to the neediest sections of the society while providing a new investment asset class for lenders to diversify their portfolio beyond conventional stocks and bonds. RupeeCircle aims to drive financial inclusion to millions of unbanked & under-banked creditworthy individuals in India.
Ajit Kumar is the Founder & CEO of RupeeCircle.com. In his current role, he is responsible for managing the overall business and operations of RupeeCircle. He also specializes in Big Data analysis (SAS and R), Modelling (Logistic, Regression, and Multinomial), Segmentation, Machine Learning, and Association and Sequencing analysis.
In an interaction with IncubateIND, Ajit Kumar talks about how blockchain technology will transform P2P lending. Read on!
Tell us something about yourself and what does Rupee Circle do?
RupeeCircle was started by me Ajit Kumar to disrupt the lending ecosystem. RupeeCircle is a P2P company which provides personal loans targeting the under-banked population and the new to credit borrowers. At the same time, it provides an alternate investment solution to the lenders who directly invest in these loans.
How Big Data and Artificial Intelligence are changing Online Lending?
Technology is playing a key role in changing the way investment and borrowing happens today. Big Data, if used the right way can help in mitigation of risk by detecting fraudulent behavior and identifying potential risky borrowers. Also, it helps in grading the borrowers in various risk categories and thus determining the interest rates on their loans.
Similarly, artificial intelligence is helping in tech driven customer solutions where the customers get automated customer support. For the lenders especially, AI can help in hassle free diversifying of the investments in various loan categories.
How tech-enabled alternative lending is bridging the gaps in credit systems?
Fintech and especially P2P is reaching out to the yet untapped market of credit seekers. With increased mobile and internet penetration, it’s time to look at a person’s credit worthiness beyond the traditional underwriting methods. With new technologies, the lending ecosystem is reaching more and more people who are joining the ecosystem either as borrower or lender.
How will new technology improve the loan process?
Technology has definitely changed the way in which loans are applied and processed. The paperwork involved is almost nil and the application process can be completed using a smartphone. Not only this, the underwriting is made easier because of availability of digital footprints of the borrower which becomes a key underwriting factor for the P2P players. Overall, the experience for the applicant has become much easier and less tiresome and at the same time increased the transparency between the borrowers and the lenders.
Can blockchain and related technologies solve India’s huge lending gaps?
Yes. Technology has the potential to change the way lending happens. The results may not be visible overnight, but it would be for all of us to see in the long run.
How blockchain technology will transform P2P lending?
Blockchain technology certainly has its application in P2P lending. The KYC process for the customers can be simplified as blockchains can create unique digital IDs for the customers. The KYC process which currently requires document submission from customer’s end and verification from the company takes a significant time would be a matter of seconds. Not only this, with blockchain there could be smart contracts between the borrowers and lenders. This would again remove the hassles and time taken with the paper work. Blockchain technology can prove to be a real game changer for P2P industry which strives to be fast and customer centric.