WhatsApp Lending Platform by Federal Bank Qorus-Infosys Finacle Banking Innovation Awards 2024

The WhatsApp Lending Platform by Federal Bank revolutionizes banking through WhatsApp, capitalizing on its ubiquity and aligning with customer preferences for convenience. We are First Bank in our country to offer end to end loan application processing through WhatsApp which includes handling of the campaign to digital document execution there by disbursing the loan amount to the customer account and the first Bank in our country to offer the Pradhan Mantri Jan Dhan Yogana sourcing through WhatsApp lending platform. Our commitment to innovation extends to ensuring that our customers benefit at every turn. With the WhatsApp Lending Platform, Customer experience a new level of convenience, faster loan processing, unparalleled accessibility, and personalized financial services that cater to their unique needs.

The initiative stems from recognizing the evolving banking landscape's demand for convenience and personalized services. Leveraging WhatsApp's vast user base, the platform addresses the market's need for accessible, secure, and inclusive banking. The business case involves tapping into 2 billion global WhatsApp users, especially in India with 400 million users, aligning with customer preferences for real-time communication.

We want to offer the lending products through this end-to-end encrypted channel where customer could easily avail the loan product merely through few click so that customer will be availing the service conveniently and easily and Bank is ensuring the compliance directed by the regulators.

In the global market WhatsApp is having best customer acceptance so that we could sell our product in the best and most convenient way to customer.

We have experienced a substantial surge in the volume of pre-approved personal loan disbursements. This underscores the platform’s effectiveness in meeting the financial needs of our customers and demonstrates the significant impact it has had on streamlining and expediting the loan disbursement process.

Pre-approved Personal Loan Flow: -Through our analytics department, eligible customers are identified based on predefined criteria, and their details are updated in the MIS table. Integration of Federal Bank's APIs with the WhatsApp BOT enables communication with the core banking solution. Targeting customers occurs through: - 1) Business Initiated Messages-where pre-approved offers are pushed. 2) User Initiated Messages-allowing customers to check offers directly. Upon landing on the platform, customer details are fetched using our Customer -Mobile Number API, ensuring eligibility for those with unique mobile numbers and KYC compliance. The SMS API facilitates customer authentication through OTP. Customers, upon confirming their eligibility, proceed to select loan details such as Loan Amount/Tenure and accept terms and conditions. E-signing, leveraging the service of Legality, involves Aadhaar-based authentication and Class 3 certificate for the bank signatures. Successful e-signing triggers the loan offer blocking API, initiating the loan processing request so that the process such as loan account opening, and loan account disbursement will be automated at our Core Banking level.

Pradhan Mandri Jan Dhan Yogana For PMJDY, the customer-Mobile number API checks eligibility based on age and KYC status. Customer will be inputting their date of birth so that we will cross check DOB entered by customer and details in CBS. Once the detail is successfully validated, the customer will be given the option to select the required product based on eligibility.

After the product selection customers update the nominee details such as nominee name, relation, guardian details if nominee is minor. Premiums are deducted from the active account with customer consent through OTP. Upon completion, details are sent to the Bank's financial inclusion gateway, ensuring a streamlined process for both personal loans and PMJDY participation.