Co-Lending Implementation at DCB Bank Qorus-Infosys Finacle Banking Innovation Awards 2024

RBI released Co-Lending guidelines on Nov 2020 which has helped the Banks in forging multiple Co-Lending arrangements with NBFCs/HFCs (CLPs). Basis the guidelines, On 2021, We have implemented the Co-Lending business model in our bank under CLM2 model to increase the business under Co-Lending business and initially we have enabled in one Co-Lending partner with specific to Gold loan segment. Based on the successful results, gradually we have enabled various segments like Unsecured business Loans, Mortgage Loans. Currently we have 10 Co-Lending partners in Live across various segments.

Co-Lending model is an opportunity for banks to increase the share of credit to priority sectors. By partnering with NBFCs, banks can tap into the expertise and reach in specific market segments. Allows banks to benefit from product innovations and ultimately expanding the bank loan portfolio. Our Bank has started the Co-Lending under CLM2 upload model which is expeditious solution developed by Our Bank to get it onboarded the customers as a bulk with more robust process. The CLM2 upload solution is built using technologies like Finacle Script , JSP, JavaScript and Oracle DB, and the intentions that to avoid the manual process for onboarding bulk customers and make it more healthy process where system will handle the bulk customer onboarding process without any human-induced errors.

The major Objectives of this project are:

• To avoid the more rejections associated with data entry and and ensuring a more accurate and reliable onboarding customers whatever customers are met the business criteria via upload files.

• To ensure the compliance with industry regulations and standards during automated process to maintain accurate records and prevent fraudulent activities.

• To onboard bulk customers with minimal period by automated and modernized the process, leading to increased operational efficiency and boosted the Co-Lending partner satisfaction.