Bank of Baroda, the third-largest public sector bank in India, has introduced a digital lending platform that allows prospective retail loan seekers to digitally access loans at the convenience of their place and time of choice through a paperless process.
Selected customers are offered pre-approved Micro Personal Loan to shop everything through offline/online partner channels and pay in easy EMIs later. The sum can also be used by customers in their Savings Bank account and converted to EMIs in 60 seconds from three to 18 months through its mobile banking app, m-Connect+
Its executive director, Vikramaditya Singh Khichi said the main objective of the platform is to provide exceptional customer experience, personalized journeys and scales the lending business through digitization.
He further said by developing a high-performing, creative ecosystem that has helped banks to reduce time-to-market for their goods, the bank has tried to digitize itself internally. By adopting a digital-first lending approach across retail, MSME, and agriculture segments it expects to outpace the growth of the banking industry by 1.50 times at a CAGR of 16 percent over the next five years.
Also, the Digital Lending Platform provides ‘In Principal approval’ for home loans, car loan, and personal loans in 30 minutes without human intervention.
Bank of Baroda said the digital loan process is done from the various sources of the loan applicant’s financial profile and the applicant will get ‘In Principle approval’ in 4 simple steps.
The prospective applicants may use various outlets to access the facility – website, mobile banking, internet banking, and social media.
Through a digital lending platform, the bank will offer ‘Online Loan against Fixed Deposits’ which enables Fixed Deposit customers to use loans instantly through mobile banking and net banking facilities against their Online FD.
With the introduction of the digital lending platform, the Bank assumes that personal loan disbursements will first be completely digitized, followed by disbursements from MSMEs and agriculture. As such, the bank anticipates that the digital share of retail lending disbursements will rise to 74 percent over five years.
“We endeavour to accelerate our digital journey and continue to invest and innovate to transform banks into a completely digitised organisation. Digital lending platform will help the Bank to double the non-corporate book by 2025,” said Dr Ramjass Yadav, Chief General Manager, Bank of Baroda.
“Our aim is to reposition existing operating models with a ‘Digital First’ model and to achieve this, we will rapidly launch new products to serve our increasingly digital customer base,” said Akhil Handa, Head- Fintech, Mobility and Digital Lending Dept Bank of Baroda.
