Context:
AdvaRisk, a fintech company backed by ICICI Bank and NABARD, is transforming collateral management for financial institutions using its GenAI-based data intelligence platform. The company serves over 50 financial institutions, including regional and smaller banks. Focuses on digitising discovery, onboarding, legal due diligence, and real-time monitoring of real estate collaterals.
Core Offerings
- Accurate verification of property titles and detection of potential encumbrances.
- Enhanced property data precision by linking property records with revenue and transaction data.
- Automated red-flagging and legal audits, significantly reducing procedural errors and human negligence.
- Real-time account monitoring, aligned with RBI mandates for lenders.
Technology as a Game Changer
- Integration of AI and machine learning to:
- Flag discrepancies early in the loan process.
- Mitigate cybersecurity and procedural risks.
- Support compliance with new RBI directives.
- Solutions cater to onboarding efficiency and dynamic monitoring of collateral-backed loans.
Banking Sector Challenges Addressed
- Compliance with increasing regulatory requirements.
- Minimizing risks linked to:
- Inaccurate property documentation.
- Human error and manual lapses.
- Cybersecurity vulnerabilities.
- Support for regional and smaller banks that lack advanced tech infrastructure.
Impact on NPAs and Lending Risk
- Advanced tech adoption helps reduce loan defaults and non-performing assets (NPAs).
- As per government data, gross NPAs of public sector banks stood at ₹3.16 lakh crore (3% of outstanding loans) as of September 2024.
- Early-stage risk detection by AdvaRisk can play a crucial role in reducing future NPAs.
AdvaRisk’s GenAI-powered platform is becoming indispensable for Indian banks looking to streamline collateral management, enhance risk mitigation, and adhere to evolving regulatory demands. With rising pressure on banks to improve credit quality and operational efficiency, such fintech solutions are well-positioned to reshape the lending landscape.
Source: Business Line
