In the rapidly evolving financial sector, the challenges of debt collection have traditionally been met with manual processes and outdated practices. Rishabh Goel, co-founder and CEO of Credgenics, is spearheading a transformation with a cutting-edge SaaS platform that utilizes AI and machine learning to revolutionize the debt recovery process. Established in 2015, Credgenics has emerged as a leader in the debt collection space, addressing long-standing inefficiencies and bringing a modern approach to a crucial financial function.

The Evolution of Debt Collection in India

India’s debt collection industry has been characterized by its reliance on traditional methods, often marked by cumbersome manual processes and a lack of comprehensive regulation. This sector has lagged behind in modernization, with debt collection typically seen as a back-end operation. Cultural barriers and a history of limited technological adoption have further complicated the landscape, leaving the industry ripe for disruption.

“The biggest challenge has been the historical disregard for debt resolution practices. Despite advancements in other areas of banking, debt collection has remained outdated, driven by manual efforts and isolated strategies,” Goel explains. He highlights that the lack of a unified technological approach and the cultural stigma surrounding debt collection have significantly hindered progress.

Credgenics: Pioneering Change with AI

Credgenics is at the forefront of this transformation, offering a sophisticated platform that leverages AI and machine learning to streamline the debt collection process. The platform’s core strength lies in its ability to provide actionable insights through advanced data analytics. By analyzing historical data, the system can segment borrowers, assess behavioral patterns, and devise risk-based strategies.

“Our platform uses AI and ML to make debt collection more efficient and humane,” says Goel. “We offer automated communications across multiple channels, including multilingual bots that interact with borrowers, ensuring a more personalized and effective approach.”

Credgenics’ technology automates routine tasks such as ad placements, landing page content, and email drafts, which reduces the setup and running time of campaigns by at least 50%. This automation not only speeds up the collection process but also enhances its efficiency by minimizing human error and improving compliance with regulatory standards.

Impact and Growth

Since its inception, Credgenics has seen substantial growth, working with over 100 clients, including banks, non-banking financial companies (NBFCs), housing finance companies (HFCs), fintechs, and asset reconstruction companies (ARCs). The company’s platform manages a vast loan book and has significantly improved collection metrics. For instance, lenders using Credgenics have reported a 20% increase in resolution rates, a 25% boost in collections, and a 40% reduction in costs.

“The future of collections is digital-first and data-driven,” Goel asserts. “By integrating AI and machine learning into the collections process, we help lenders adapt to the modern financial landscape and meet their goals more effectively.”

The company’s success is evident in its operational profitability, achieved last year. With a focus on expanding its customer base and developing new solutions, Credgenics aims to maintain its growth trajectory. The platform has already managed 40 million retail loans and sent out 60 million digital communications monthly, demonstrating its significant impact on the lending ecosystem.

Regulatory Landscape and Future Directions

The regulatory environment in India has also evolved, with the Reserve Bank of India (RBI) playing a proactive role in shaping the sector. Recent RBI initiatives, such as increasing risk weights for unsecured loans, are designed to foster a healthier and more stable lending environment. Goel views these regulatory changes positively, noting that they encourage better practices and innovation in the sector.

Looking ahead, Credgenics plans to expand its operations internationally, targeting Southeast Asia. The company is focused on adapting its solutions to regional requirements and addressing collections challenges in related industry segments. “Our goal is to continue innovating and expanding our reach, leveraging our technology to solve the unique debt collection challenges faced by different markets,” says Goel.

Conclusion

As India’s debt collection industry faces new challenges and opportunities, Credgenics stands out for its commitment to innovation and efficiency. By harnessing the power of AI and machine learning, the company is not only transforming debt recovery processes but also setting new standards for the industry. With a strong focus on technological advancements and regulatory compliance, Credgenics is well-positioned to lead the way in modernizing debt collection and driving the future of financial services in India and beyond.

Through its advanced solutions, Credgenics is reshaping the landscape of debt collection, making it more effective, transparent, and aligned with the needs of today’s financial ecosystem.