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Part : 4 – Setting up a Fintech Bank within a Bank (or NBFC) – API Based Risk Engine

For credit decisioning, we would have to establish a comprehensive risk engine. This should have machine learning to support improvement over period of time.

Credit Engine platforms across most banks are part of legacy issue.. The challenges faced are:

– They do not accept social data for credit decisioning.

– They do not have APIs for integration with Customer Onboarding Systems or with Lending Systems. Many of these platforms do not go much beyond CIBIL wrt integration.

– They do not support automated processes in general.

– They do not provide Real Time Credit Decisioning, which is key for e-Commerce customer transactions.

– They do not support complete range of lending products across segments.


Potential options for the bank are:

– Custom built the platform for specific set of products (Fintechs are doing it anyway!!!)

– Partner with Digital Decisioning Platforms that are offering partnership with banks. These platform providers offer white label solutions.

– Partner with standalone new gen credit decisioning engines

– Partner with Fintechs with powerful decision engines


More details in next part…

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