Background: Retail lending (RL) in India has seen significant changes during the pandemic. The Pandemic has in general accelerated digitization initiatives across the banking sector. Several regulatory changes have cleared the way for new players to come into the retail banking space, facilitated digital onboarding of customers and democratisation of credit bureau data. In this fast changing ecosystem, most lenders are trying to enhance RL capacity by leveraging on advanced technologies (AT). AT is being extensively used to design new products and processes. The strategy is to make RL business more customer-centric. For example, some banks are partnering with Fintechs/Bigtechs for their AI driven cloud solutions for marketing, analytics, advertising, and commerce, with the aim of personalizing the digital journey of its customers. Also, adoption of online distribution of retail loans has compensated for the significant amount of capex required to build retail lending infrastructure. While early adopters tend to prefer end-to-end digital lending, the majority has adopted a hybrid (phygital) approach to lending. Under this approach, banks offer channels for specific, high value, physical interactions that complement digital banking. Private Wealth Management business is witnessing interesting changes in some banks.

Access to more data relating to transactions, behaviour, app-based data, location information, social data has helped designing of new lending models. Alternative credit scoring mechanisms aided, among others, by the democratization of credit bureau data enable consumers to digitally apply for loans and get approvals digitally, all under few minutes.

Objective: The VLP seeks to expose the participants to these trends which are likely to completely transform the RL ecosystem post pandemic. Participants will learn the technicalities surrounding the trends in retail lending through web lectures and analytical discussions.

Program Highlights:

Topics/issues to be covered in the VLP are the following: 

•   Retail lending- Changing landscape amid and post pandemic

•   Retail Lending- Regulatory changes and supervisory issues

•   Traditional and alternative credit scoring methodologies

•   New products and processes in retail lending

•   Retail lending and Private Wealth Management

•   Digital lenders and FinTechs - Innovations using User Experience (UX) & User Interface (UI) Designs

•   Digital marketing and delivery of credit

•   Collection and recovery in retail loan portfolio