Naser Taher
The Benchmarks of Reliability
AbhishekJoshi
Abhishek Joshi
Wecanallagreethatleadershipstylesseverely
impactemployeeproductivity,interdepartmentalcommunication,andproductand businessdevelopment.Leadersareessentiallymeantto enhanceemployees’commitmenttowardsreachingtheir fullpotentialinachievingavalue-addedsharedvisionwith integrityandpassion.
Theroleofprogressiveandvisionaryleadershipisallimportantwhenitcomestonewsectorslikefintech. Leadershipneedstobeabletoenvisagethefutureandbe aheadofthecurvewhenitcomestotakingboldbusiness decisions.Thefutureofbusinessliesindigital transformation,anditrequiresapragmaticleaderwiththe foresighttosettheenterpriseontherightpath.
Financialservicesbusinesseshaveundergonemorechange inthelastthreeyearsthaninthelastthreedecades.It’svery importantforpeopleleadingengineeringandproductteams withinfinancialinstitutionstorespondquicklytomarket dynamics,underlyingtechnicalchangesandimprovements totheirservices.
Leadersalsohavetoshowalotofempathytowards customersandtheirneeds,whichhasbecomeoneofthe mostimportantfactorsinthesuccessofnewfinancial servicescompanies.Overall,beingresponsibleforother people’smoneyisachallengingtaskandbeingaperson withalotofintegrityandempathyisoftheessence.
Leaderscomeindifferentshapesandsizes,andpeoplefrom differentbackgroundsandexperiencestendtobringunique perspectivesonthings.Asthefintechlandscapeisevolving rapidly,weneedpeoplewithmoreandmorediverseideas onhowtomakefinancialtoolsuniversallyavailableto empowerpeopletowardstheirindividualprogress.
Thisrequiresagoodunderstandingofhowtechnologyis evolvingintermsofpayments,banking,investing,and lending,amongothers.Atthesametime,onealsoneeds goodobservationskillstowardconsumerbehaviourand trends.
Mappingthejourneyofthevisionaryleaderswhoare transformingthefutureofthefinanceindustry,Insights Successshedslighton‘TheWorld'sBestOnline FinancialDerivativesInstitutions.’
Flipthroughthepagesandindulgeyourselfinthe odysseyofprolongedexcellence.
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Cover Story
Naser Taher
C O N T E N T S
Managing
Aditya
Senior
Business
SME-SMO
Circulation
CompanyName
BusinessFinance Depot
The World's Best Online Financial Derivatives Institutions
FeaturedPerson
PaulBosley Founder
DavidBlack CEO CoatesFinance
BrianVieaux President Finlocker
NaserTaher Chairman MultiBankGroup
AdeshinaAdewumi CEO TradeLenda
Brief
BusinessFinanceDepotoffersfinancing,marketing, construction,anddesignservices.
Withover20yearsofexperience,CoatesFinanceensuresyou thebestguidancefromthesmartestpeopleintheindustry
FinLockeroffersthenextgenerationincustomerrelationshipbasedperformancemarketingtoempowermortgage originators,lenders,servicers,banks,creditunions,andcredit counselorstoprovidetheircustomerswithpersonalized financialsolutionsandexperiences.
MultiBankGroup’scutting-edgetradingplatformsoffers groundbreakinglevelsofstabilityandreliability
TradeLendaisdigitalfinancialservicesolutionenablingaccess tocreditforMSMEsleveragingalternativedatasourcesto qualifycharacterandcapacity
Marking the Crucial Facets of Financial Fundamentals
Capitalisanimportantcomponentofevery
commercialenterprise.Businessorganizations needfundsfortheirdevelopment,revamping, expansion,andnewinitiatives.TheNon-BankingFinance CompaniesalsoknownasNBFCshaveplayedapivotal roleinmeetingthefinancialneedsofindividualsand businessesthathavetraditionallyremainedun-servedor underservedbybanks.
WithstricterregulationsonNBFCs,thecostofborrowing hasincreasedandNBFCsarefocusingonnichemarkets andpersonalizedproductsandservices.Thishaspropelled theNBFCsondevelopinginnovativeproductsandcatering tolow-income,urbancustomersinunorganizedsectors.
Supportedbytheinnovationsinthefintech,NBFCsare adoptingbusinessandoperationalmodelspoweredby
technologiesthatseamlesslyfacilitatethedesign,launch, implementationandexecutionoftailoredproductsand services.Investinginnewtechnologiesandstrategic partnershipswithincumbentfinancialinstitutionsand FinTechsalsoallowsNBFCstolowertheircostswhenit comestoincreasingtheircustomerbase,loweringcustomer acquisitioncosts,servicingexistingcustomersorde-risking theportfoliowhiletryingtoovercometheincreasingformal creditpenetrationinagrowingeconomy.
Today’sFinTechcompaniesareefficientlymakinguseof new-agetechnologiestoovercomechallengesandbuild productsandservicessuchaslast-milereachanddelivery, alternativecreditmodels,frauddetection,regulatory compliance,enterpriseautomationforaccounting,treasury, andreconciliationfortraditionalNBFCs.
ArtificialIntelligence
ArtificialIntelligence(AI)isacutting-edgetechnologyfor theNBFCs,thathaselevatedtheirdecision-makingprocess andhasexpandedtheir360-degreeperspective.Inthe beginning,AIandMLtoolsassistedNBFCsprimarilywith creditandriskmanagement;AIisnowanecessitythatcan beeffectivelyleveragedacrossdepartments.Ithashelpedin thescrutinizationofthecreditaspectsfortheMSMEsand developedadeepunderstandingofthemicromarket. NBFCsusealotofdataandexternalapplicationstocreate theirunderwritingmodelswhichconsiderthebusiness segment,hyperlocalgeo-analyticsandotherbehavioral attributesofthesmallentrepreneurs.
RoboticsProcessAutomation
Thedevelopmentsintechnologieshavehelpedin automatingseveralprocessesinthefunctioningofthe NBFCs.TherecentapplicationsofRoboticsProcess Automation(RPA)havecontributedtoexecutingdata management,documentverification,scrutinization, analyticsandprocessing.RPAhasenabledpaperless processingwithimmediatereal-timereconciliationthereby expeditingthebusinesscyclesatafastermomentum.RPA hasassistedinfasterloanprocessingfromoriginationto disbursement.
AdvancedAnalytics
ProgressiveNBFCshaveimplementedprocess-driven analyticssolutionstoshowcasetheflexibilityprovidedby dataanalyticsandadvancedanalyticsmodelstoforecast customerdefaults. AdoptingSoftwareasaService(SaaS) modelshaveminimizedtheupfronthardwareand infrastructurecost.Thesolutionfeaturesananalytics platformallowinguserstosliceanddicedataacrossvarious dimensionstogaininsightsintoloanapplicationportfolio, exposureandfundingaspects,customer,andloan performanceThesolutionofferedanalysistoenable decisionsforcorrectiveactionsintermsoftheirresponse time,applicationaging,collectionperformance,salesteam performance,andmore.Ithashelpedinexploring,tapping andservingtheundeservedandunservedstrataofthe economictable.Advancedanalyticshasoffered24X7 customersupportwithhigherscalabilityandagility
APIAdvantage
ModerntoolslikeApplicationProgrammingInterface(API) arerecenttrendsinBankingandFinancialServices.They
areasetofgeneralinformationthatallowstheadmittance ofsoftwareprograms.ThistechnologyenablesNBFCsto sharetheirdatathroughthird-partyapplications.
APIsaretransformingbusinessesbyofferingendless possibilitiestobanksandfinancialcompanies.Accordingto aResearchandMarketreport,bytheendof2024,the globalAPImanagementmarketisexpectedtoreach$6.2 billion.Ascompetitionrisesbetweentraditionalbanksand fintechstartups,bankshavestartedoptingforAPIsto embraceadigitalecosystemandassimilatemoreglobally
ByembracingAPIs,NBFCsareenhancingtheirservices andrapidlyadaptingtotheevolvingdemandsofthe customers.BankingAPIsfacilitateeasyandfastKYCand onboarding,openingaccounts(virtualaccounts,savingsor businessaccounts),fintechpayments,debitcards,and launchingBNPLproducts,thismakeswayforbetter businessgrowth,customerengagement,andretention.
BlockchainTechnology
TheBlockchaincanstreamlinebankingandlending services,reducingcounterpartyrisk,anddecreasing issuanceandsettlementtimes.Itallowsauthenticated documentationandKYCdata,reducingoperationalrisks andenablingreal-timeverificationoffinancialdocuments.
Themodernblockchainenablesmoreopen,inclusive,and securebusinessnetworks,sharedoperatingmodels,more efficientprocesses,reducedcosts,andnewproductsand servicesinbankingandfinance.Itenablesdigitalsecurities tobeissuedwithinshorterperiodsoftime,atlowerunit costs,withgreaterlevelsofcustomization.
Digitalfinancialinstrumentsmaythusbetailoredto investordemands,expandingthemarketforinvestors, decreasingcostsforissuers,andreducingcounterpartyrisk. Blockchainenablesreal-time,multi-partytrackingand managementofbankguaranteesandlettersofcredit.
Automatedcompliance
Dependonfasterandmoreaccuratereportingwithan automatedcomplianceprocessthatdrawsonimmutable datarecords.Benefitfromthenearreal-time,point-to-point transferoffundsbetweenfinancialinstitutions,removing frictionandacceleratingsettlement.91%ofBankshave investedinBlockchaintechnologiesin2018. Approximately66%offinancialinstitutionsarerunningat scalewithblockchain.
Embracing the Convergence of Open Banking and Generative AI to be Purposeful in Consumer Lending
Consumerlendinghasevolvedintoasophisticated enterpriseofdata-drivenpersonalization,hyperlocalsegmentation,andreal-time,always-on digitalmarketing,tryingtofindtheperfectofferforthe rightconsumeratthemostopportunetime.Itisallabout 'leads'andabout'conversion.'Financingahousethrough mortgagelendingisnoexception.Whatusedtobea predominantlyrelationshipbusinesshasreinventeditselfon theinternet-social-digitalstageandisworkingonplayinga biggerpartinthedigitaltransformationofourdailylives.
Throughthisanalyticalmachine,though,fallthroughmany thatdon'thavethehighest'conversion'value–consumers whomaynotimminentlymakeapurchaseand,therefore, arelessvaluableforthetransaction-drivenrevenuemodels prevalentinmostfinancialservicesmarketing.While perfectlyrationalonthesurface,how,then,shouldwelook attheimpactofthistransformationonthoseconsumers who'needsomehelp'?Thosethat(i)maynothavethe historicaladvantagesofbeingabletobuildcredit,(ii)that havehadabumportwointheirpastcredithistoriesdueto structuraleconomicconditions,and(iii)thosethatselfselectandsitoutofthemortgageprocessbecauseof variouslevelsofuncertaintiesandintimidationsthatpresent themselves.Marketingmachinestendtoensnarethis populationinless-than-idealcreditproducts,often unsustainablefortheborrower,furthercompoundingtheir economicviability.
Hereinliesanopportunityforseasonedindustryveterans andalwayshungry-to-learntechnologiststopursueapath ofinnovatingwithapurpose:tomakethatfirst homeownershipopportunitypossible,makecreditforthat firsthomeaccessible,andsetourconsumersonapathfor sustainablewealth-building.Themortgageindustrycando thisbyridingontwofundamentaltechnology transformationsthatwillunderpinhuman-computer interactionsfordecadestocome…openbankingand generativeartificialintelligence.
Openbanking,theconceptofmakingaconsumer's financialdatasecurelyavailableuponconsent,isadriving forceofinnovationforfintechsinthebankingindustry,who havealreadytransformedourdailyliveswithnumerous productsandservices.Wecanaccessourbankaccounts whileonawebsite'sshoppingcart,transferbankaccountto-bankaccount,andnotwritechecksorusecreditcards thattakedays,ifnotweeksormonths,tosettle.
Thereisatonofinnovationhere.Openingbankingcanhelp lendersobtainamoreaccuratepictureofaconsumer's financialsituationandrisklevelbyresponsiblyidentifying theirwillingnesstopaytheirmonthlyrecurringobligations, forexample,utilitiesandrent,andcreateaviable alternativetoconventionalcreditscores.Thisdevelopment hasbeenagamechanger,especiallyforthosewithnocredit orthincreditfiles.Thispopulation,who,bytraditional meansofcreditassessment,wouldhaveremainedonthe edgesofaccessingprimecredit,nowhasafightingchance ofsecuringahomeloanjustasmuchasthosewithdeep conventionalcredithistories.Thisiswhatwecall purposefulinnovation.WedothatalotatFinLocker.We analyzeconsumer-permissionedfinancialdataandestablish sustainablepathstowardhomeownership.Weemploy artificialintelligencetoanalyzetheconsumer'sconsented financialdatatoseeifwecanhelpthembetterunderstand theirspendinghabitsandprojectcash-flowvolatilitytoget amoreaccuratepictureoftheirownfinancesbeforetaking ondebt.
Whiledataandanalyticsfueledbyopenbankingsetthe tabletoanalyzeaconsumer'sfinances,generativeAIcan furtherlowerthebarofengagement.GenerativeAIisthe abilityofthemachinetosynthesizeandcreatenovel content,notjustregurgitatepre-fabnumbersand information.ChatGPTisatrendingexample.
Whenappliedtofinancialservices,generativeAI(without theirhallucinations)canunderstandnotjustaconsumer's financialdatabutderivemotiveandintentions,contrastyou
withothersina'journeylikeyours'–andcreatethecertaintyandconfidence thatyouarenotaloneinyourpursuit.Does generationalincomecomeintoplayformy demographic,andisitacceptabletoaskaboutthat withamortgageprofessional,orwillIbedenied?Can Irent-sharemyfuturehomewithothermillennials,or willthelenderjudgemeasunabletoaffordtheproperty? Howdodownpaymentgrantswork?Alltheseare contextualquestions,quitepersonal,thatopen-bankingdrivenfinancialanalyticsmayormaynotshedlighton. UsingresponsibleandgenerativeAI,wecanopenthedoor fortheseconversationswithoutfearofjudgmentor rejectionandletourconsumersfullyexploretheirjourney.
Recallourobjective,sustainablehomeownership.Themore aconsumercanunderstand,exploreandown,thebetteritis forthem–andmostcertainly,thebetteritisforthehousing financeecosystem(15-18%ofourGDP!).Soforthose chartingacourseforpurposefulandprofitableinnovationin thisdigital-social-ChatGPTera,looknofurtherthanthis powerfulconvergenceofgenerativeAIandopen-banking technologies.
Author
Prabhakar“PB”Bhogaraju,Executive Vice-President,HeadofStrategy& ProductDevelopmentwithFinLocker,has over20yearsofmortgagetechnologyand consultingexperience,withextensive experienceindesignthinkinganddigital businessstrategy,productdevelopment, andcustomerengagement.Priortojoining FinLockerin2021,PBheldexecutive leadershippositionsinproduct development,datamanagement,and digitalbusinessarchitectureatFannieMae fortenyears.
Understanding the Fundamentals of Dynamic Financial Oracles
Thebusinessworldhasseenmanyupsanddowns, andtheloominguncertaintyisalwayswandering around.Asexpertsalwayssuggest,uninvested capitalkeptinreservesisalmostuseless.Ifthemoneydoes notworkforthecompany,itisofnouse.Profitandexcess cashaccumulatedbycompaniesmustbeputintheright placeattherighttimetomaximizereturnstobenefitthe company.Mostoftherichcorporationsintheworldgot theirwealthbyusingsimpleyetusefulstrategiesto multiplywealth.Investingmoneyisnorocketscience;if doneinasystematicandorganizedwaycanleadto exponentialgrowth.
Companieskeeptheirearlyearningsintheirbankforalong periodoftimewhichisthewrongthingtodo.Agood financialadvisortoacompanywillsuggestgoodoptions foranall-roundportfolio.Anidealportfolioincludesall
