MUMBAI:
New insights released today by TransUnion reveal the sheer scale of India’s growing credit economy and the rising number of consumers who are demanding a quick and easy digital application experience so they can access funds more easily.
Research reveals current processes are still cumbersome and time-consuming – requiring credit applicants to go through multiple steps and provide several pieces of data and identity confirmation. This, combined with lenders’ tight control over fraud checks and manual verifications, makes it incredibly difficult for them to meet consumer expectations.
To address these challenges, TransUnion has launched TransUnion Seamless Onboarding, which helps both lenders and consumers experience a quicker and easier digital account opening process. Designed to deliver a “friction-right” and enhanced customer journey, while increasing conversions, the solution helps strengthen customer loyalty, reduce fraud, and drive operational efficiencies for lenders. Delivered via a single platform and API, TransUnion Seamless Onboarding significantly reduces integration time and effort for lenders, whilst encompassing identity verification, fraud detection, credit/risk decisioning workflow and orchestration for India’s first truly end-to-end onboarding solution.
In order to assess the onboarding challenges faced by the credit Industry, TransUnion recently conducted analyses around the time it takes for credit application approvals in India to complete. Analysis showed that:
Credit Cards: 86% of credit card applications took longer than one day to be sanctioned, of which almost 60% took more than 3 days to sanction
Personal Loans: 77% of personal loan applications took longer than one day to be sanctioned, of which 58% took 3 days or more
Two-Wheeler Loans: 91% of two-wheeler loans took longer than one day to be sanctioned, of which almost 65% took more than 3 days
Car Loans: 87% of car loans took longer than one day to be sanctioned, of which 64% took more than 3 days
Speaking about these findings, the President of TransUnion Asia, Satish Pillai said: “Consumers are increasingly demanding a seamless onboarding experience that provides a fast, personalized service. Although we have seen improvements in the number of credit products granted within a day of application over the past several years, it is still a surprisingly low percentage of the overall total. This, coupled with the fact that almost 22 million consumers are seeking credit opportunities every month, means the credit industry in India must evolve and undergo a true digital transformation. Lenders need to stay competitive and cater to the increased demands and expectations of consumers while still being able to efficiently manage risks.”
TransUnion’s research also revealed evolving consumer behavior trends – indicating that 70% of credit applicants dropped mid-way through the application process due to reasons like long application times, too many fields requiring information, requirement for a branch visit or sending paperwork through the post.
The findings show that to be successful in onboarding customers, lenders need to streamline and modernize credit application processes while managing risks. Additional research confirmed this, showing lenders’ top three priorities were: to improve operational efficiency; to acquire new customers; and to reduce the risk of fraudulent accounts being opened.
Pillai concluded: “Improving customer journeys can often seem like an insurmountable task. Lenders are often reliant on legacy or multiple systems and have to choose between maintaining them or developing new platforms. TransUnion Seamless Onboarding delivers a full range of identity, fraud, decisioning and credit solutions through a single platform and a single API to make the integration very easy for the lenders. Its flexible orchestration and plug-and-play offering enables customization to meet evolving business needs.”
With TransUnion Seamless Onboarding, India’s credit industry will be able to reach the market’s 22 million credit customers a month through a digital, streamlined onboarding process that delivers the experience consumers prefer: fewer input fields to complete, little or no physical paperwork, and less time required for credit applications. The solution’s consumer-friendly design and ground-breaking capabilities position it to transform onboarding in India: a total friction-right experience that consumers can complete in one sitting – anytime, anywhere – without compromising privacy or security.
