With the boundaries of ecosystems blurring, there is a huge opportunity for banks, eCommerce players, and NBFIs to think beyond lending products and deliver an integrated experience across the credit ecosystem. iKredit360 is a comprehensive and composable technology platform that enables institutions to curate unique credit experiences to merchants, channels-partners, and end consumers. With its ability to converge multiple elements such as internal and external systems, financial products, credit lifecycle, and fintechs, iKredit360 empowers financial institutions to expand and extend their credit experiences to become the primary engagement point for their customers.
In my opinion, client-centricity is keeping our Customer's customer at the center and deciding everything around that- both in letter and in spirit. To illustrate this point, if there is something that is right for my customer's customer, though it may be more expensive to me or the bank, as a true partner, we should go for it.
Our leadership team is unique and diverse, and that is the strength of this team. We have a good mix of technology and domain skills, new and homegrown talent, professionals with experience as well as fresh graduates with newer vision... all united by a common purpose of accelerating the digital journey of Banks and FIs. More importantly, the team carries, and embodies, a "Can do" attitude.
There is renewed focus and interest in the Lending Business globally, across ‘Consumer Assets’ if I may add, because that’s where the primary revenue opportunities are- it’s the money-generating side of banks/FIs. Traditionally, Lending functionalities and modules were packaged and sold along with Core Banking, and it was considered a massive transformation exercise for the FIs to implement a new Core or to change an existing one. With the advent of new-age platforms, no longer do FIs have to go for a complete Core transformation. Standalone lending solutions provide comprehensive coverage of all banking needs across the Assets platform and especially with a platform like iKredit360, which goes even further to curate niche and relevant solutions across products, channels, and enterprise verticals to change the paradigm of how we have visualised Banking transformations. Who needs a traditional Core when you can curate your credit requirements through iKredit360?
Over the last 18 months or so, the world in general, and consumer finance in particular has seen a considerable churn in the way they are operating- long-established traditional processes and way of working are no longer acceptable and are being removed to make way for faster, digital and straight-through processes- that economize on efforts and cost all across. One of the main influences of this approach has been to replace a traditional product focus approach with a more customer-centric one, leading to an eco-system based product proposition in which credit/lending/consumer finance gets intrinsically wedded to the ecosystem where the finance is being offered- so, a consumer finance proposition at a retail store X needs to differentiate itself from a consumer finance proposition at an e-com site Y, and still provide a superlative customer experience, and simultaneously be commercially viable for the FI. This is only possible if the FIs can raise the bar from being just product pushers to relevant ecosystem players. A great case study that comes to mind is Amazon, where I, as a consumer, can go and select a product, then a brand of my choice, and also avail a financing scheme suited to my needs, and my credit rating, all from the SAME PLATFORM - a perfect example of marrying POS Retail with Consumer Financing and Data Analytics!
This architecture paradigm is all about the assembly of a solution by bringing together various independent building blocks. When you take the perspective of an enterprise or a bank, it is all about curating solutions and experiences from autonomous business components. Gartner calls these business components “Packaged Business Capabilities” or PBCs relevant for a business user. These components can be accessed from a vendor, or from the bank’s internal eco-system, or from a marketplace that the bank has access to. When you take the perspective of an application or one business component, it is about architecting it with a microservices architecture. It's very important that each building block in a composable architecture is a self-complete black box that provides a well-defined capability in terms of Open APIs and events for others to interact with it. This also highlights a need for a composition platform that rapidly enables this assembly and orchestration. Maximum scale and agility are only possible if you have these components deployed as containers on a Kubernetes service on elastic cloud, follow cloud-native principles, and be available as a service.
There is a thin line between PBCs (Packaged Business Capabilities) and microservices. Architecturally they represent the same paradigm of composition. PBCs due to their enterprise context have a Go To Market focus, are granular enough to serve a business need that can be composed while designing an enterprise solution or composing a bank, and can be swapped easily with an alternative PBC from another source. Thus, they are apt for an independent GTM as a service on the cloud. Microservices are more relevant as application architecture and might not be practical for an independent GTM as it would increase the costs of integration and might make the change transformation unviable. Practically, one PBC will be architected as one or more microservices.
For banks and financial institutions, the primary driver for curation is to differentiate against comparable product offerings and deliver a superlative experience to their customers. On the other hand, of course, is the need to optimize investments and efforts to serve a certain segment or line of business. That the technologies and solutions align themselves to address these demands is imperative and therefore an obvious outcome.
I would like to change the Question to cover a more important perspective- Why go beyond lending or your core business activity anyway? The answer lies in creating stickiness. Imagine a small business entity that relies on its bank's experience and personalized advisory services across a range of topics like digital marketing strategies, tips for automation, cash flow forecasting, or tax planning. Won't the bank find it easier to sell its core products and services to such a customer on the back of such engagements? Similarly, mortgage lenders who provide real estate advisory, documentation support, and home improvement planning are more likely to succeed in winning over and retaining customers over the long run. The value-added services may be non-core and sometimes even seem to be a distraction but go a long way in creating long-term profitable customer relationships.
We curate quality solutions for our clients with their end clients in mind. Our sole objective for every delivery is to achieve "Customer Happiness" and that is the single lens used by our delivery leaders for any decision during the implementation promise.
A perfect orchestration of Packaged Business Capabilities resonates in a symphony that will change the way you look at credit, Revolutionise the way you deliver it!
Chief Marketing Officer
Global Consumer Banking
Financial institutions require a holistic solution to crack the fine art of balancing sticky experiences while spotting, and leveraging on, opportunities that bring in additional revenue.
To thrive in the connected ecosystem of new-age age credit, the thinking must progress from transactions to experience. This credo is at the heart of iKredit360!
Head - Manufacturing,
Go under the hood to explore the powerful engine is driving the experience ecosystem in Lending.
YES BANK, on being adjudged winner at IDC Financial Insights Innovation Award for Intellect powered Digital Transformation.
"... The unique COLORS platform enables YES BANK to extend commercial lending products and services with versatile integration capabilities through open APIs..."
Chief Information Officer, YES BANK
On Intellect being selected by Concentra for its digital-first strategy...
"With Intellect digital banking platform, Concentra will be able to offer end-to-end lifecycle management for high-interest savings accounts, mortgage lending, specialised commercial lending..."
Chief Executive Officer, Global Consumer Banking