OptaCredit: Democratising Credit through Artificial Intelligence

CIO Vendor Timely finance has long been assumed a luxury when it is a basic right. Alarmingly, 26 percent of salaried class have less than a month’s savings and43 percent face financial stress as per OptaCredit’s survey. More pertinent to employers is that, 2 in 5employees agree that financial worries distract them from their work and 49 percent of financially stressed employees spend around six working hours each week on their financial situation, resulting in reduced productivity.

As a holistic digital lender and financial wellness partner to companies, OptaCredit offers a plug-and-play option to employers through which their employees get access to short-term, unsecured loans, making finance accessible anytime, anywhere. In an endeavour to truly simplify finance for salaried individuals, OptaCredit also offers advisory and consulting services to employees on savings, credit-profile building, financial planning ,investment and other services.

Employers cannot divert unlimited working capital towards employees ,as it could constrain business and returns are not optimised. OptaCredit’s platform is free for employers and helps their employees reduce or consolidate their personal debts quicker, there by increasing their disposable income and financial stability.

Impact + Fintech

Around 78 percent of the Indian adult population are not covered by Credit Bureaus, a.k.a,“Thin Files”, resulting in a social problem of lack of access to formal finance, that requires an intricate mix of analytics, technology and objective underwriting to crack it.

Opta Credit is able to assess these “Thin Files”,by assimilating multiple data points from public and private sources combined with alternative data points like social media, location, transaction,employment data, and various other inputs to understand the applicant.Deploying advanced analytics and machine learning algorithms helps OptaCredit unlock access to a large
untapped market that traditional lenders have not even approached.

“Although branded as a Fin-Tech player, we focus on delivering financial inclusion by supporting individuals by combining tech and finance to further social impact. Simply transferring customers from banks to other players would not be of any use if it does not impact the society. Opta Credit is not only differentiating from other Traditional Lenders,but also from Fintech players by having a strong social spine to its Fintech DNA,”said S.Kumar Srivatsan,CEO and Founder of Opta Credit.

In an endeavour to truly simplify finance for salaried individuals, OptaCredit also offers advisory and consulting services to employees

Intelligent Underwriting

Using advanced analytics and alternative mechanisms to create new ways for a more defined customer assessment, and determine “creditworthiness” of such applicants by learning from various forms of non-traditional data is core to Opta Credit’s offering. This helps it offer quicker and cost-effective loans to the previously underserved.
Using proprietary scorecards that assimilate these various data, analytics and decision sciences, Opta Credit generates an Opta Score for every eligible applicant, which helps it evaluate the repayment capacity and intent of applicants.

“Our machine learning algorithms capture complex patterns in applicant and repayment data that human under writers and risk analysts are unable to capture, while readjusting the underwriting models dynamically to incorporate trends in data even before they are identified by risk managers”added Kumar.

Fintech startups like OptaCredit are democratizing the lending industry as well-intentioned employers and businesses have realised that organisational success lies in the financial and mental wellness of the work force- World Bank Data.