Banks should collaborate with Medius AI to automate their debt collection processes


The Covid-19 outbreak has spread enormous instability and volatility in the financial services industry. While FinTech had caused an irreversible digital revolution much earlier, the pandemic has firmly established digitalization as the substrate of the industry in the future. One of the hardest hit subsets of this industry that continues to operate under traditional offline practices is debt management. The pandemic has had a cascading effect on people’s finances and, therefore, their ability to repay debt. This, in turn, has resulted in a massively worsening NPA crisis, costing the Indian economy dearly. As all the complex problems of today’s world have found a solution in technology, here too the answer lies in the digitization of outdated physical modes of debt management.

Nitin Purswani recognized the critical need to leverage technology to improve the collection and recovery process and founded Medius AI, a collection intelligence platform. Nitin is a FinTech enthusiast and passionate entrepreneur with the vision and expertise to reduce non-performing assets and bad debts while helping banks eliminate operational and administrative issues associated with debt collection.

“While the lending and distribution process has seen a rapid pace of digitization, this is not reflected in the debt management process,” says Nitin, CEO and Founder of Medius AI. Talking about the origin of the idea, he adds, “During the first Covid wave, the RBI had imposed a 6 month moratorium which was a respite to several borrowers who lost their source of income. According to RBI, 40% of all bank loans – worth Rs 38,68,000 crore ($523.4 billion) – have come under a moratorium. However, once the moratorium was officially lifted on August 31, millions of Indian borrowers had debt collectors force them to repay their loans. The borrowers intended to repay but had their hands tied due to the stress of the situation. I understood that collection and retrieval processes have remained obsolete for decades, and coming from a tech background, I could only think of ways banks could do this better by leveraging AI and ML.
Nitin further explains, “With the rapid pace of development of the Indian economy, the volume of credit has also increased. Unfortunately, so does delinquency. Based on current data, the level of NPA is expected to decline from 7.5% in 2021 to 9.5% by September 2022. These bad debts will eventually weigh heavily on banks and, by extension, on the funds of millions of people. customers associated with these banks. Medius AI uses AI-powered behavioral analysis and predictive algorithms to determine whether an overdue account will recover on its own, become more delinquent (regardless of what we do), or make payment if it is properly processed. Then, using machine learning models, conversational AI is trained to appropriately collect the debt.”

The new-age start-up, which was launched in 2021, has already partnered with some of India’s leading banks and NBFCs to manage a delinquent portfolio worth over INR 500 crore. Medius AI saw its revenues increase by 3 times and helped banks recover 17% more NPA. The platform’s state-of-the-art technology has successfully managed a wide range of loans, including home loans, car loans, personal loans, agricultural loans, and business loans. In terms of capital, the start-up is still completely self-funded and self-sufficient, with Purswani owning 100% of the company.

Talking about the future roadmap, Nitin says that technological innovation matching customer needs will always be Medius AI’s vision in the future. “Our core strength now is data analytics to predict consumer behavior and maximize customer interactions,” he explains. Our goal is to speed up the collection process while minimizing friction. Our workflow has been designed to effectively withstand the impact of a huge scale of defects. Thanks to our omnichannel digital approach, we have been able to achieve the desired results for 9 out of 10 of our consumers today. Our goal is to radically revolutionize the way collections and debt collection operations work today and limit the economic impact of bad debts.”

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