Green NBFCs - The Tortoise on a Skateboard

They may have been slow due to their DNA, bigger purpose and ecosystem constraints. But - strapped with technology- Green NBFCs are ready to beat all the Hares in the digital race. Shreevar Narayan, CTO, Ecofy tells us why the complexity of APIs, scale-based RBI frameworks, NPA calculations, IoT-born telematics and the industry rush for NBFC licenses makes this space unique. And why all that - incidentally - makes more and more room for technology.

- Pratima H

Where and how much does technology help in your business - especially in areas like loan worthiness, underwriting, onboarding, delinquency management, and compliance areas?

For Ecofy, digital is in our DNA. We leverage technology across every aspect of our lending journey-from seamless onboarding and KYC checks to robust underwriting and disbursement processes. Our digital-first approach ensures efficient fraud detection, streamlined post-disbursement account management, and responsive customer servicing.

Technology plays a vital role in maintaining RBI compliance and managing collections, empowering us to make data-driven decisions swiftly and accurately. By integrating advanced analytics in assessing loan worthiness and underwriting, and utilizing automation for delinquency management, we create a lending experience that is efficient, secure, and customer-centric.

By streamlining these processes, we enable faster access to green loans, making it easier for customers to invest in sustainable solutions like electric vehicles and renewable energy.

Previously, lengthy paperwork and approval delays were major hurdles, often discouraging individuals and businesses from adopting green initiatives. With our efficient digital processes, we bridge this gap-helping to drive the adoption of eco-friendly technologies at a much faster pace, thereby contributing meaningfully to the growth of the green economy.

How do credit-checks happen here - what kind of scores or data do you use?

At Ecofy, we leverage a wide array of data sources to conduct thorough credit-checks. We utilise banking data to assess transaction patterns and financial stability, and bureau reports to review credit histories and repayment behaviors. Incorporating GST filings and Income Tax Returns (ITR) allows us to evaluate business performance and income reliability.