Cognifin

The NBFCs (Non Banking Financial Corporations) have empowered the microfinancing in India during the past decade by lending MSMEs amounts which has helped them progress at a much rapid pace.

Although operating in the unsecured lending space, the volume of such loans micro-loans has helped NBFCs grow substantially with a little risk of defaults. The high number of loans has added to the volume of data which has added an operational burden of processing, collating & reporting that data. This monthly cycle of data processing also poses challenge to not able to dive into historical data for sophisticated analytics to help mitigate risks and potential frauds.

Current Industry Challenges

Completely Manual Process

Manually collecting, organizing, cleaning & reporting of loan data is time consuming.

High Human Capital Involved

The current process keeps a large chunk of finance team busy most of the time in such redundant activities.

High Margin of Human Error

Since all processing is manual, the margin of error in calculations & reporting is very high.

People Dependent Process

People Leave, Knowledge Leaves. Lot of time is wasted in grooming new set of people.

Changing Vendors & Formats

In case of vendor, partner or a format change, additional changes to the process need to be made.

Not Scalable Operationally

Partners Increase leads to increase in the excels, processing time & the people as well.

Enter Cognifin!

Easy Data loading for multiple vendors with multiple formats with one-time configuration.
Central Data Warehouse consolidates all vendor loans for MIS with historical data available up to 10 years.
Configurable Disbursement, Portfolio, Collection, Efficiency and other internal reports.
200+ Monthly, quarterly, and compliance reports, for RBI and 50+ banks & financial institutions.
100+ Advanced Analytics Reports for uncovering financial patterns in lending and collections.
Powered by proprietary AI based data quality framework to auto correct data errors from source system or manual data entry processes.

How have Congnifin users increase profit margins by at least 3-5% ?

Cognifin has allowed to automate the loan data collection from partners/branches for the NBFCs in an easy way. One time configuration to the system of the formats for each partner/branch is enough for the system to ingest and process data automatically. Similarly, one-time configuration of the disbursements, portfolio, collection, efficiency along with the other internal & stakeholder reports, automates the report generation and emailing to stakeholders.

This has helped the reduction of operational involvement of finance team into MIS & Data Processing and helped them think and analyze the reports more leading to identification of possible risks and potential opportunities in segments of micro-financing. This has led to large reduction in operational costs not only at human capital level but also at fixed costs levels since processing now happens in central servers now. Operational requirements like IT Assets, Real Estate, Power savings has also contributed to positive P&Ls.

Cognifin has helped us reduce operational finance team size by 60%. After reorganization of teams, we have saved a lot by reducing need of new employees. This has not only saved salaries but also hiring & retaining costs.

CFO, Ananya Finance