By Usha Prasad
FinTech company Capital Float has leveraged technology to bring forth advancements such as automated decisioning, which has contributed towards scaling up the business.
Capital Float has witnessed unprecedented growth due to the effective use of various automation technologies. The company currently has over 5 lakh customers spread over 300 cities in India.
“Such a scale in under six years at low OPEX wouldn’t have been possible if we followed a brick-and-mortar model of operations,” says Tushar Garimalla, Chief Growth Officer, Capital Float.
Technology continues to be an excellent enabler for Capital Float. Along with enabling easy access to credit, technology also facilitates convenient access to credit. New-to-credit borrowers are able to access formal finance at significantly lower costs owing to Capital Float’s lower OPEX, making access to credit affordable for these underserved segments.
“Our competitive advantage is driven by offering loans a lot faster than the market and making these loans easily available to customers. This is done in the form of requiring minimum documentation, having APIs that auto-pull data via net banking, etc.,” adds Garimalla.
Loan Under 90 seconds: The role of Automation and analytics
Capital Float’s automated lending platform is a great case in point for how automatic data integration and analytics can bring in unprecedented business results. Its lending service offering, targeted at small store owners in India, has indeed set some industry records by delivering a loan under just 90 seconds! Predictive analytics, combined with automation, made this possible, says Garimalla.
“All our consumer loans are decisioned without human intervention. There are predictive models that look at various data sources; such as partner data, bureau data, application data and device data,” he says, adding that data privacy and protection mandates are equally important. “Consent is obtained prior to leveraging these data points.”
This model is under constant evolution as the company works towards making it better, faster and more customer-friendly.
Capital Float offers a one-click enhancement through its mobile app which helps borrowers get a second loan or renewal on just one click. The technology supporting such a mechanism is automated and data-driven, making the experience very convenient for the borrower and furthering brand loyalty.
Business Defined Technology
As Chief Growth Officer, Garimalla leads several strategic initiatives within Capital Float. His focus is primarily on building models and processes to scale automated lending across various verticals.
These include new-customer acquisition through digital marketing, identifying predictive models to determine credit policy and collection processes for certain products, and managing the P&L for automated loans.
Garimalla leads a team of digital marketers and decision scientists in this regard, and technology has always been one of the critical drivers for the team.
Garimalla has a clearly thought-out strategy when it comes to investments on technology. He believes that technology investments need to be aligned with business pain points if one wants to see better results.
“The key technological driver for us is to solve the most pertinent business problem in the most efficient way possible. Therefore, knowing which problem to solve using technology is far more important than choosing between technologies,” he sums up.