Over a decade ago, could you have imagined lending credit to your customers sitting at home through the ease of their laptops?
Fintech companies have led one of the most extensive disruptions in the BFSI sector in recent years, especially with COVID-19 in place.
In India, it has mainly been evident with the introduction of the Unified Payments Interface (UPI) that has allowed the adoption of digital payment methods among diverse sections of society.
Over 500 million Indians adopting the internet have paved the way for other financial services and digital payments.
Fintech solutions have increased accessibility and convenience and improved risk management and efficiency. As a result, advanced technology and newer products like Paytm Payouts have eliminated many constraints in the banking sector.
Challenges in corporate finance and lending
With almost two years into the pandemic, we can say that these events have presented critical pain points for corporate banks and their clients.
Meanwhile, corporations are looking to simplify relationships with their banking partners.
The pandemic has pushed them to get access to end-to-end real-time data and digital capabilities.
As a result, more than half of corporate banking clients say they’re reviewing relationships with their primary banks, according to a survey conducted in 2020.
A majority of corporate banks are wrestling with similar problems.
Different levels of digital change including automation, integration, and intelligence can help banks change their processes to respond to market needs and customer expectations.
These areas of corporate lending are particularly ready for digital transformation:
- Loan origination: Large and small banks have invested in a loan origination system (LOS) as a first step toward digitizing the customer journey. Still, most LOS cannot deliver an utterly digital strategy for all loans, and most cannot handle loan servicing.
- Credit risk management: Banks need to rewire their credit risk monitoring systems to make them more responsive to the current crisis. A configurable, enterprise-wide risk management system will help banks view risks holistically and jump over the competition to serve their customers better.
- Integrated credit: As loan applications rise due to the COVID-19 crisis, banks need to build eligibility criteria into the credit evaluation for government-backed programs. They may also need to increase automated credit decision-making to as many applications as possible. A sound credit management system, combined with the lending system, improves due diligence and lowers risk.
- Loan servicing: Corporate credit lending requires a collection of workflows related to customer service, risk management, accounting, reporting, and more. Shortage of automation means the process is typically labor-intensive, costly, and error-prone, factors that can inhibit scale and erode loan portfolio quality. If the combined credit function can support loan servicing, it can improve customer service and trigger early warning indicators for declining credit quality.
Digitization is creating new parkways for banks’ growth, improving customer service, and creating effectiveness in bank operations. A new-generation lending platform enables standard processes across all loans.
How Paytm Payouts can help with lending
Paytm Payouts is the current market leader in digital transactions.
This product suite consists of the crux of the payouts product, including account validation/penny drop that enables you to verify your customer’s accounts easily. Penny drop is a customized solution that helps your business validate the customers’ bank details. It uses an API-based integration that sends the customer’s name back as a response.
With Paytm Payouts, you can disburse money and incentives to borrowers, DSAs, and resellers through bank accounts, UPI handles, or Paytm Wallets using the API and the dashboard.
You also get access to the various privileges of the Paytm ecosystem, including employee benefits, enterprise bill payments, vendor invoicing, payout links, custom approval workflows, expense management, and more.
How technology makes Paytm Payouts even better
Paytm Payouts is an extremely tech-driven product.
Real-time alerts: It provides real-time alerts, so you never miss a due date for your business expenses. You also get a system to track your day-to-day expenses for the best reconciliation process automatically.
Digital onboarding: Onboarding, in traditional banks, usually takes a few days to a month. With Paytm Payouts, you get a smooth onboarding process that includes digital verification & an e-signing agreement. You can read more information on the onboarding process here.
Multiple sub-accounts: Be it various office locations or business verticals, organizing and managing funds becomes much more accessible and cleaner with multiple sub-accounts that you can operate on one dashboard.
Success rates: Our in-house developed technology helps success rates soar high. Paytm Payouts has an impeccable record of no downtimes, no payment failures and allows auto-retries up to 72 hours.
No cool-off period: With Payouts, there is no cool-off period after adding beneficiaries. You can pay salaries and bills instantly and round the clock, even on bank holidays.
Knowing new-to-credit customers better
Many banks are still using old-fashioned, labor-intensive processes for their credit lending operations, severely limiting visibility and efficiency.
However, to thrive among competitors in this digital age, businesses need to digitize.
Paytm Payouts answers this call and provides a digital-first path, addressing each corporate lending process from initiation to fulfillment.
Combining the power of Payouts’ modern credit lending process management solution with the availability, scalability, performance, and security of Paytm enables banks to meet customers’ on-demand and custom financing needs.
What Paytm Payouts is offering
- Origination, structuring, and fulfilling of debt transactions – With features like penny drop and automated payouts, you get customized validation solutions along with smooth and instant disbursals to your borrowers, DSAs, and more at the single click of your finger.
- Bespoke debt products created to meet your business requirements – Loans are possibly the most easily understood debt product. You can acquire them from financial institutions or individuals. You can use them for various purposes, such as purchasing a vehicle, financing a business venture, or consolidating your other debts into one. With Paytm Payouts and its impeccable features listed above, the journey of having your customer borrow and pay you back becomes extremely simple and fluid.
- Flexible repayment structures to fit your organization’s cash flow, where suitable – In any organization, cash remains the king. To be sure, accessing that cash requires organization-wide financial discipline and a clear working capital optimization strategy. With automated features to deal with your accounts receivable, accounts payable, inventory, and cash management, Paytm Payouts prevents you from missing out on opportunities to hit your free-cash targets, reduce costs, increase shareholder returns, and fund growth.
- The expertise of dedicated product experts – Our product experts can take an unfiltered look at an idea, rapidly prototype and test it, and determine whether it’s an intelligent use of your company’s funds. If their idea is a winner, that’s great. But if not, they can re-prototype the idea or just shut it down entirely depending on your needs.
- Easy loan disbursement– Paytm Payouts has a smooth and automated payouts system for loan disbursals along with an exclusive wallet, UPI, and bank ecosystem to ensure instant, safe and secure transactions.
- Instant insurance claim settlements – Paytm Payouts, with its sharp customer-oriented outlook, renders 24×7 instant disbursals within an automated payout service to provide your customers with the money when they need it the most, with no delays in the settlement process. What’s more? It eliminates agent payments or broker commissions for you while acting as the agent and enabling you to operate and provide quick claim settlements to your customers on weekends and bank holidays through NEFT, RTGS, IMPS & UPI transfers. All this, with the highest success rates in the industry.
- Incentive programs – With Paytm Payouts, you get to run all your DSA and reseller incentive programs under a single comprehensive platform. You also get to enable cashbacks for your customers, pay through various modes like the Paytm Wallet, gold, gift vouchers, loyalty wallets, and more. These programs are especially applicable to Paytm service agents and promise to make your life as easy as possible.
- Commission Payout for insurance agents – Insurance agents serve as mediators between insurance companies and those seeking to purchase insurance policies. Paytm Payouts provides an effortless way to pay these commissions out through various modes and thus sets itself apart from all its competitors in the field.
- Better systems for reconciliation, success rates, custom approval workflows – If you’re reading this, we’re sure you’re part of a business involved in performing reconciliation, having great success rates, and bettering the custom approval workflows that are part of your system. Thus, you also certainly understand the importance of automation on productivity, efficiency, and client servicing. Making improvements to existing systems and processes involves recognizing the nature of the challenge. Paytm Payouts targets the root of the problem and sorts it out for you unnoticeably. It provides better-automated systems for all of the above processes and thus makes the overall user experience way better than you think.
Conclusively, with Paytm Payouts, you get to enjoy all credit lending based solutions under a single roof inclusive of:
- Easy integration for all products
- Fast and simple onboarding
- A single dashboard for your entire business
- Industry-leading solutions
- The largest proprietary ecosystem
If you want to recapitalize, refinance, or streamline your debt management, Paytm Payouts offers a range of debt solutions to help your business.
Whether you seek two-sided/multi-bank loans or have special financing needs, we aim to come back to you instantly backed with experienced product specialists and a dedicated dashboard to manage all your needs at once.
Interested in these propositions? Try them out for yourself!