IDFC FIRST Bank Risk Management & Asset Quality
Section 9: Risk Management & Asset Quality
Benefit
Bank has utilized the new Indian digital Ecosystem for better controls in lending
Stage of Loan
Processing
KYC
Risk
Scorecards
Earlier
New
Ecosystem
•
Physical copies of Passport, Ration Card,
etc.
Identity is
Biometric
•
Regression and Judgement based models
AI / ML
Now
Low seasoning of Bureau
• Low awareness of credit bureau
Bureau
•
Lesser records (300m)
•
Static Photo test
Fraud Control •Traditional eyeballing method for Frauds
Cash Flow and
Financial
Analysis
Repayment
Mandate
Collections
Monitoring
No Fraud database, Scorecard
Physical copies of financials, bank
statements, salary slips, Income Tax Returns
No alternative data sources
Manual calculation of financial ratios basis
photocopied document
PDCS/SI/ NACH for repayment
• Tele-calling, field collections
Batch Mode, once a month
Biometric KYC - eKYC, CKYC, Aadhaar OTP based KYC
Advanced Scorecards based on Logistic Regression and
Machine Learning algorithms
•
High seasoning, better data quality
Bureau is
evolved
•
More records (600m)
Advanced real
time fraud
check
mechanism
Bank
statements,
GST records
are electronic
NACH is
electronic
UPI, BOT
.
• High awareness and sensitivity among customers
Live Facial recognition technology, latitude-longitude
marker
•
Automated identification of fraudulent transactions
Availability of Fraud Database and Scorecards
Digitized .pdf bank statement, salary slips, tax returns
Digitized alternate data sources like GST, Telecom, etc.
Automated calculation of financial ratios and cash flow
analysis
Electronic mandate through- NACH
High Quality Identity
check
Better Risk
management
Reduced credit risk
Better fraud
management
More accurate cash
flow analysis
Better collections
• Collection through sending UPI link, calling using bots to Frictionless, lesser use
customer
Analytics is
•
Real time monitoring of portfolio by various cuts
real time
of tele-calling
Better quality of
portfolio
44
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