The BCNet Economic Locator Platform leverages econometric models and machine learning techniques to help identify locations with the potential for high credit absorption.
It assesses collective creditworthiness for every urban location and rural village in India and facilitates connections with Development Bank guarantees for seamless Priory Sector Loan Issuance. The platform generates Digital Business Plans at the block level and Digital Credit Plans at the village level, enabling loan companies to determine an optimal growth path using new branches and business correspondent networks (or merchant aggregators) to best effect. Monthly monitoring through digital plans helps banks efficiently meet their credit goals.
1. The Economic Locator tool is designed to offer insights into locations with higher probable credit absorption by utilizing hyper-localized demand and supply indexes, as well as borrowing and repayment trends at the district, block/tehsil, and village levels. This tool assists financial institutions to expand unserved locations and to improve services to underserved areas.
2. The Economic Locator tool uses collective creditworthiness data. The tool uses configurable selection criteria that aid financial institutions to assess creditworthiness at the village level by analyzing trends in the amount borrowed and repaid, savings potential, and the value of non-depreciable physical assets. This evaluation helps determine whether or not to create campaigns to promote consumer loans, home finance, PSL, agriculture, etc., in that location.
3. The Economic Locator Credit Planning tool has the potential to verify the credit guarantee limits available and utilized by development banks for a given location to support MSME and Agriculture loans for lenders. This aims to expedite the issuance process with minimal paperwork for lenders, reduce their risk, and avoid additional capital adequacy requirements tied up in managing Non-Performing Assets.
4. The Economic Locator Business Planning tool has the potential to automate the population of data about blocks and villages. This allows officers to expand the business and operate a frictionless process for issuing loans
5. The Economic Locator Digital Credit Planning tool is a transformational tool that redefines a location as an asset. It computes the addressable market size for the identified village and automates the population of data for its’ credit plan - assisting financial institutions to meet their business targets with timely alerts and insights
Incorporating our Digitalized Credit Planning capability and Economic Locator, using our Econometric Model, we help identify the best locations with both planning and tracking.
The recommendation is that financial institutions plan their growth and operations by leveraging a combination of branches and existing or new merchant networks, including Merchant Aggregators, Kirana Shops, and BC Mobile agents. This proactive approach involves marketing loan products to pre-identified retail, MSME, and FPO profiles, enabling the economic scaling of banking business throughout the state.
The Digital Business Plan and Credit Plan, created through the economic locator and executed using the Credit Expansion Assistant, empower merchants to contextually market loan products and facilitate collection efforts by both Merchants and Mobile Agents.
The Credit Expansion Assistant includes agent management capabilities that provide a service provider setup, centrally facilitating the activation and deactivation of service providers, contracts, and agents to affordably scale operations, with less or without additional branch network. It aids in onboarding supervisors, agents, and their devices remotely to execute operations securely. Using leads generated from CRM and the Collection system, Agent Management optimizes the daily route planner for mobile agents, schedules appointments at merchant locations, and transforms 'reactive' loan product sales campaigns into proactive ones.
Ultimately, the tool offers integrated performance benchmark dashboards.
The Onboarding Workbench operates at the doorstep of the customer.
The Digital CAF (Common Application Form) offers application filing, for new customers, in local languages. Agreements can be read out loud by the tablet in local languages to support customers with literacy challenges to capture customer-account-nominee details, evidence, liveliness, location, digital and biometric signatures. Agents can administer eKYC (for new) and Re-KYC (for existing) customers at the customer doorstep to restart and / or regularize dormant customer accounts.
Details are then uploaded to core banking KYC registry for deduplication & AML verification, customer onboarding and saving bank account opening operational workflows. The Onboarding Workbench digitalized process also works in locations with or without mobile internet.
Digital CAF functionality is offered on a tablet with offline or online connectivity to core banking systems.
The Daily Operations Workbench offers cash-limits/operational risk management a daily planner for the agent and cash management functions. The application supports low value cash collection and payment services at the customer doorstep and enables third party payments on behalf of the customer. Limits can be configured dynamically. The daily planner is graphical and automates route planning, cash requirements and securely places customer information in an Agent tablet.
The Daily Operations Workbench is offered on Tablet devices, including support for Micro-ATM’s. Whilst integrated to Core Banking, this application can operate when core banking systems are either connected online or unconnected offline.
The Advisory Workbench is an application in support of Business Correspondent Agents at a point of presence, such as a kiosk, or a more substantial location. A supervisor may offer assistance and advisory services to sell and service products like loans, deposits, insurance, third-party payments plus capabilities such as passbook printing, balance enquiries, Aadhaar Seeding etc.
During city expansion in metros and urban segments, banks have a choice to consider a combination branch, ATM, Kiosk and mobile agents to service customers. Each has value and well suited to reach underserved customers in metro areas or to push under-represented products to where product adoption needs to improve.