While a lot of innovation has happened with technology, the change in lending has been particularly dramatic. It wasn’t long ago that securing a loan was a test of patience, a process bogged down by paperwork that could take anywhere from one to four weeks. Today, thanks to digitization, NBFCs frequently deliver loan approvals in as little as 24 hours, with faster loan processing times, and reduced manual intervention and paperwork, also making credit evaluations and loan disbursals notably more efficient [1].
However, this speed has created a new set of challenges for NBFCs:
- Competition from banks and fintechs - Both traditional banks and agile fintech startups are fighting for the same customers.
- High cost of capital - NBFCs pay more for funding than traditional banks, squeezing margins.
- Changing regulatory framework - Evolving compliance requirements demand flawless risk management.
For the NBFC, this is where the promise of a fast, digital experience can either be realized or fall apart under the combined weight of competitive demands, cost constraints, and regulatory requirements.
The Problem: A Firsthand Look at the Customer Onboarding and KYC Journey
To understand the friction in today's digital lending, we at SyncIQ set out to see what a customer applying for a personal loan on one of India’s largest NBFC platform has to go through. We wanted to witness the challenges firsthand.
The journey started with a simple loan application portal asking for a mobile number and PAN to auto-fill details. The auto-fill feature failed twice. We started a timer and began manual entry.
Over the next 40 minutes, we manually entered personal details, income verification, employment information, and office addresses. We waited quite a while for email OTPs and navigated through multiple screens. After 40 minutes, we had only reached the email verification step. Ahead lay several more important steps: KYC verification, which involves uploading a host of documents, providing bank details; and setting up an e-mandate for repayments. The initial promise of a quick, digital loan felt distant.
Our experience showed us that while digitization has improved, many digital journeys are just old, broken workflows with a new interface. The promise of a seamless experience is being replaced by the friction of manual data entry and frustrating delays. In 2022, a substantial 68% of people abandoned the digital lending process, ultimately increasing the drop-off rates for financial institutions. [2]
Multi Agent Orchestration to Hit Your Desired Goal: Reimagining NBFC Workflows
An "Agent-First" approach, powered by a multi-agent orchestration platform, redesigns these broken workflows. It deploys a collaborative "digital workforce" of specialized AI agents to execute the entire end-to-end process autonomously. Each agent is an expert in its function, and a central orchestrator manages their collaboration.
Reimagining Customer Onboarding and e-KYC with an AI Agent Team
A multi-agent system can transform onboarding into a seamless and near-instantaneous experience by automating backend documentation and verification.
Here is how the workflow functions with an Agent-First approach:
- Step 1: Initial Data Capture and Parallel Verification. When the applicant enters their PAN number, an Orchestrator Agent assigns tasks to multiple agents that work in tandem.
- A Verification Agent connects to the NSDL database to validate the PAN number.
- Simultaneously, another Verification Agent queries the Central KYC (CKYC) registry to pull the applicant's legally verified name, address, date of birth, and photo.
- A third Verification Agent connects to credit bureaus to retrieve their credit score and history.
- Step 2: Automated Data Population. Another agent gathers the verified data and uses it to instantly populate the application form. The manual entry that took over 45 minutes is now completed in seconds with higher accuracy. The applicant is then simply asked to confirm the pre-filled details.
- Step 3: Intelligent Document Analysis. The system now prompts the applicant to upload their latest bank statement to verify income.
- A Document Processing Agent understands the document's structure, identifies recurring salary credits, confirms the employer's name from transaction descriptions, and accurately calculates the net monthly income. This information is used to validate the income details on the application.
According to a McKinsey study AI-powered document processing can increase data extraction accuracy by up to 90%.[3]
- Step 4: Automated Risk and Compliance Screening. While the documents are being processed, other agents perform background checks.
- A Screening Agent cross-references the applicant's verified name and details against global sanctions lists and databases of Politically Exposed Persons (PEPs) to meet AML regulations.
- A Fraud Detection Agent analyzes the submitted documents for any signs of tampering or forgery. It can detect inconsistencies that a human eye might miss, adding a layer of security.
- Step 5: Consolidation and Handoff to Human Review. The Summarizer Agent consolidates the results into a single profile, and can approve the onboarding for straight-through processing. However, if any red flags or discrepancies are found, it triggers a Human-in-the-Loop (HITL) workflow.
- In Human-in-the-Loop (HITL) workflow, an Agent can hand off the case to a human compliance officer with a complete, structured summary for final review.
- Once the human reviewer confirms the file, the system automatically routes the application to the Video KYC team's queue. The entire backend journey is finished in under two minutes, making the process faster, more accurate, and more secure.
The entire journey, from entering a PAN number to having a fully verified profile ready for the final human touchpoint, is finished in under two minutes.
The Value of an Agent-First Approach
Adopting an Agent-First approach delivers a powerful, multi-layered return on investment that goes far beyond simple cost savings. It creates a more efficient, resilient, and competitive organization.
Here’s how:
- Efficiency Gains: By automating end-to-end workflows, NBFCs can slash onboarding times from days to minutes.
- Superior Risk Management and Asset Quality: Advanced fraud detection agents can reduce fraud-related losses by catching sophisticated threats in real-time.
- Enhanced Customer Experience: A fast, seamless, and transparent process dramatically improves customer satisfaction and loyalty. By eliminating friction and providing instant decisions, NBFCs can significantly increase their application-to-conversion rates and build stronger, lasting customer relationships.
- Bulletproof Compliance: Automating the Customer Onboarding & e-KYC ensures consistent adherence to RBI regulations. The system creates a perfect, unalterable audit trail for every decision, making the organization perpetually audit-ready and significantly lowering regulatory risk.
The long-term value of an Agent-First approach is business agility. In a competitive market, being able to adapt is important. A modular agentic platform allows an NBFC to react to market changes and new regulations.
Want to know more about how SyncIQ can transform your customer onboarding and KYC journey? Request a personalized demo and experience it firsthand.
References
- PwC India. Retrieved from: https://www.pwc.in/assets/pdfs/consulting/financial-services/fintech/publications/a-wider-circle-digital-lending-and-the-changing-landscape-of-financial-inclusion.pdf
- Salesforce. Redefining AI In Customer Success. Retrieved from: https://www.salesforce.com/blog/ai-customer-success/
- V500. (n.d.). Maximise efficiency and accuracy: Supercharge your document workflow with AI! Retrieved from: https://www.v500.com/maximise-efficiency-and-accuracy-supercharge-your-document-workflow-with-ai/
