ADAPTify fuels the end-to-end DATA journey for Home First Finance Company
India holds the promise of an economy where large number of people are aspiring for a better life and financial freedom. This aspiration represents one of the largest growth engine across all emerging markets. Owning a home is one of the most important financial aspiration of individuals with relatively lower income. And helping them achieve this aspiration could prove to be an effective business model for fuelling growth. For an effective business model that could leverage this aspiration it is extremely critical to have an underwriting strategy that is effective for this segment (where large numbers are new to credit customers). In addition, such a business model calls for extremely efficient and automated processes that could keep operations cost to the lowest.
About the Client
Home First Finance Company (HFFC) provides home-loans to low and middle-income individuals, specifically in the affordable segment. HFFC is a young housing finance company built on a single premise, we believe everyone should own their dream home. HFFC blends technology and personalisation, so that the loan process is easy and hassle-free. Most of HFFC’s customers are first time home buyers and HFFC’s vision is to empower them to live better!
The key business benefit of the initiative includes: automation of credit underwriting while reducing early delinquency by about 1%, reduction in about 3 full time employees through automation of reporting, accurate loss estimation leading to higher compliance and enabling citizen data scientists.
Home Fist Finance (HFFC) is a leading non-bank finance company in India that specialises in mortgage lending for the low to medium income group segments. HFFC has witnessed a significant growth but has been able to maintain loos rates at very low levels.
HFFC is banking on its digital strategy to fuel the next growth phase for the organization. Actify Data labs is the digital partner for HFFC. Actify Data Lab has created a dedicated HFFC Digital Lab to conceptualize, experiment, develop and implement various digital solutions to fuel HFFC’s growth.
The HFFC Digital Lab is a jointly owned asset which has helped create key intellectual properties for HFFC. Actify Data Labs has harnessed its flagship platform ADAPTify to build a data lake to consolidate all data sources. ADAPTify is used to create all dashboards and reports that are required for management decision making and regulatory compliance. ADAPTify has also been the instrumental in enabling business users to develop data strategies and machine learning models.
The HFFC Digital Lab powered by Actify has helped develop machine learning driven credit underwriting models which has ensured that 70% of all incoming applications are decisioned without any human intervention. The effective automation of credit underwriting is the most important driver behind the rapid growth of the loan book.
The HFFC Digital Lab has also helped HFFC in creating a dynamic data driven loss provisioning methodology in compliance with IFRS. The loss computations have also been automated within the ADAPTify platform.
Some of the other digital utilities developed by the lab include connectors to external data, a data quality index for the organization to monitor data health, an internal access-controlled file share utility, image-based authentication, property price prediction etc.
The Actify Data Labs team have extensive knowledge of the credit underwriting area and were able to provide valuable inputs throughout the engagement period.