spocto, a Yubi company, recently reported that the collect tech platform processed loans worth $25 Billion through the collection of 35 million loan accounts in FY 22. The platform, which currently leads the Indian debt collection segment with a 40% market share, is projected to process 80 million loans worth $52 billion in the current FY. This is set to expand the Indian digital lending ecosystem by catalysing ease of repayments among borrowers through modes like UPI.
The collect tech platform reported that 70% of its transaction count came from unsecured loans like two-wheeler loans, followed by secured loans like home loans. According to its primary data, the platform reported that 90% of volumes come from personal loans, whereas 10% come from business loans.
With a monthly AuM of ₹20,000 crores per month, the collect tech platform is playing a critical link in building a stronger, resilient economy through lower delinquencies and better customer journeys towards larger loan books. spocto’s humane manner of debt collection has seen a 40% increase in loan recovery and a 23% decrease in delinquencies among borrowers compared to traditional loan collection methods. Its linguistic AI has helped over 4 lakh farmers repay their loans and avoid the trap of delinquencies. The increased efficiency in the ecosystem has resulted in longer relationships among banks and borrowers, thereby creating a healthy, harassment-free loan cycle.
Sumeet Srivastava, Founder and CEO, spocto, further adds, “Lending makes our economies stronger, and we want to be a part of the India growth journey towards achieving the $5 trillion economy set out by our government. Our current AuM has seen a momentous growth quarter on quarter, which makes us bullish on the economy because spocto enables humane, dignified loan recoveries that signal longer and more frequent lending journeys. We are aiming to process $52 billion worth of loans this fiscal year and are in line with new product offerings that enable financial institutions to create better experiences for their customers.”
spocto is witnessing ~400% growth y-o-y, which is a strong touchstone on the growth of the larger Indian debt recovery and lending market. Since its launch, spocto has demonstrated close to 100% efficiency in its early stage recoveries.
Puja Srivastava, Co-founder and CTO at spocto, states about the current market, saying, “An unceasing pool of bad loans has been the area of concern for PSBs and private banks creating a heavy impact on their loan books. In Q3 of FY21, banks wrote off ₹38,974.4 crores from their loan books, indicating the need for technological implementation to prevent delinquencies at scale. At spocto, we enable banks to deploy technologically backed solutions to evaluate and monitor effective methods. Unethical loan recovery agents’ methods have time and again proven ineffective as it incorporates mindless and harassing collection patterns. spocto’s penetration in the debt recovery market has delivered immediate relief to banks and lenders.”
spocto’s AI and ML-based debt recovery mechanism has improved collections for India’s top 5 private banks and other financial institutions by 23%.