CredAvenue to develop Co-Lending solutions for Indian banks

9 Feb 2022 , 01:37 PM

CredAvenue, the provider of the largest and most trusted co-lending platform – CredCoLend, today announced a collaboration with the leading digital banking solution provider, Infosys Finacle, part of EdgeVerve Systems, a wholly-owned subsidiary of Infosys (NSE, BSE, NYSE: INFY), to develop innovative co-lending solutions. The platform will offer real-time reporting of the co-origination assets in banks’ core banking and loan processing systems, helping meet RBI compliance requirements. CredAvenue and Infosys Finacle are already in discussion with multiple banks to launch the solution platform.

CredCoLend enables discovery, operations, and portfolio management services for Indian and global banking clients’ co-lending (co-originated) assets and has been the choice of several leading banks and NBFCs.

Gaurav Kumar, Founder and CEO, CredAvenue, said: “At the core of this collaboration is our desire to create a strong technology and data-driven environment for co-lending and co-origination. This partnership with Infosys Finacle is a game-changer and a global first, which will resolve the integration problems between banks and non-banking financial companies (NBFCs) at the category and ecosystem levels. This platform will simplify the co-lending processes of banks and NBFCs through deep integration between banking platforms and co-originator platforms. It is estimated that the banks using this platform will be able to invest in less than a tenth of the current time taken. Besides, the banks will be able to partner seamlessly with small NBFCs, reaching out to last-mile borrowers.”

Venkatramana Gosavi, Global Head of Sales, Infosys Finacle, said, “We are pleased to welcome CredAvenue to the Finacle partner ecosystem. The co-lending business model is seeing significant growth. It is helping banks, Non-Banking Financial Companies (NBFCs), and Housing Finance Corporations (HFCs) leverage respective strengths to improve credit flow in the economy. Our collaboration with CredAvenue will help our clients effectively tap into the growing opportunity and automate and streamline their co-lending operations.”

CredAvenue has built an innovative and state-of-the-art plug-and-play solution that will help banks invest and monitor multiple asset classes while also getting access to the integrated data-driven decision-making system.

“We see strong synergy with Infosys Finacle. This collaboration will significantly improve the overall lending ecosystem by enabling seamless connectivity between originators and lenders without relying on manual operations through Excel files. All originators will be able to exchange data in real-time directly with lenders’ core banking systems, with CredAvenue playing the role of an interoperable exchange. This real-time data exchange will help banks in meeting their compliance needs and simplify investments in secured and unsecured assets originated by non-bank financial institutions,” said Harshwardhan Mittal, Chief Technology Officer, CredAvenue.