How Decentro Helped CASHe Reinvent The Lending Experience

The demographic of India is witnessing a shift towards a younger population with increasing wealth possession. However, today’s youth face a constant balancing act between two contrasting perceptions.

Are they broke millennials or just wise borrowers? 

According to a recent research report by CASHe, it has been found that a significant percentage of millennials in India, more than 84 percent, have adopted a wealth management strategy to prepare for future contingencies and seek opportunities for stronger and sustainable growth in the post-pandemic world. This finding was part of CASHe’s ‘Millennial Mood Index 2021‘ survey.

However, there is also a pertinent conversation about how debt-ridden this young population will be in the coming years. Just to put things into perspective, 

According to an IMF official, India’s debt ratio is projected to be 84% of its GDP by the end of 2022, which is higher than many emerging economies. 

The common thread in this seemingly contrarian perspective lies within the fact that there is a rise in the borrowing trends among this population. 

The need is for mindful borrowing. 

The want is for an efficient and easy process.

Today, let’s delve into how CASHe, a fintech organization on a quest to reinvent the lending experience for young salaried millennials, is navigating this landscape of bridging the gap between borrowing and mindful borrowing. 

What is CASHe?

CASHe, a leading fintech company in the Indian financial services market, has achieved remarkable success since its launch in 2016. They offer various financial products to salaried millennials, including short-term credit, bite-size insurance, payments, and investment solutions. With over 45 million app downloads, loans worth Rs 7,800 crores disbursed, and a monthly active userbase of over 3.5 million, CASHe has transformed the lending landscape for millennials who often face obstacles when seeking loans from traditional banks. CASHe aims to empower young salaried individuals by providing them with a platform to effectively manage their short-term finances.

To address millennials’ challenges with limited credit history, CASHe developed an industry-first proprietary credit scoring mechanism called the Social Loan Quotient [SLQ]. This innovative approach combines artificial intelligence, machine learning, and smart analytics to evaluate the creditworthiness of applicants. By using the SLQ, CASHe ensures that credit decisions are made based on a holistic assessment, enabling them to extend loans to deserving millennials who traditional lenders may have overlooked.

How does CASHe work?

CASHe’s USP lies in spearheading financial inclusion for millions of underserved and unserved urban working millennials by meeting their unmet financial demands with accurate and faster credit decisions with breakthrough technologies. Breaking away from the norm and leveraging alternative data sources – smartphone metadata, social media footprint, education, monthly salary, career experience, and basic KYC details to assess the creditworthiness of each applicant.

The startup has kept its ethos strongly rooted in responsible lending while fulfilling all financial needs with hassle-free digital loans. CASHe simplifies your borrowing experience by taking out the complexities involved in taking a loan. They offer a wide variety of loans ranging from ₹1,000 to ₹4,00,000 with a repayment tenure of up to 1.5 years. Its user-friendly interface enables faster loan applications and quicker loan disbursals. The process of applying for a loan is a breeze.

CASHe offers a comprehensive range of credit products, including short-term personal loans, credit line, and buy now pay later (BNPL) payment options. Its personal loans cater to the user’s various needs, such as addressing financial emergencies, funding vehicle or education expenses, and undertaking home improvement projects. With its Credit Line facility, CASHe provides customers with multiple choices, enabling them to either opt for an existing personal loan or select a BNPL option to finance their purchases from popular online retailers or even pay for their house rentals.

What were CASHe’s key challenges?

The lending business can be challenging due to high-value disbursals, collections, and the need for alternative credit assessment methods. CASHe encountered a few roadblocks when onboarding users in two specific areas.

• A Secure Document Repository 
• Verification module 

Additionally, with a push towards putting a one-stop KYC maintenance system for business establishments, it is required to have Permanent Account Number, leaving room for CASHe to pivot towards one solution that would address all these concerns simultaneously. 

Digilocker

How did Decentro empower CASHe?

While dealing with credit, background checks on users are crucial for any lending platform. And these background checks need to be routed via a secure Digilocker entity. 

With Decentro’s single end-point for APIs, CASHe set Digilocker onboarding flows to offer smooth and secure user onboarding. 

With a single point access to various data points such as PAN, Aadhaar, Driving License, Voter ID, and more, CASHe onboards users in real-time and automates the KYC process once and for all. 

In this manner, when users enter their details during the process, Decentro’s APIs run checks in the backend and render all relevant details for CASHe to access and evaluate. 

The single API endpoint for multiple documents makes it easy for platforms like CASHe to integrate once and launch faster- 10X, to be precise.

What were the key outcomes for CASHe?

Decentro’s robust APIs have allowed CASHe to drive the following results

• [+1.31 Lakh] Successful eAdhaar API Hits
• 10X faster integration timelines. 
• Availed Decentro’s multi-channel customer support for any queries or resolution

In Conclusion,

The aim to empower fintech players has found its fruition through our partners. That’s precisely what our simplified banking APIs are here for! Along with CASHe, we’ve enabled many customers, such as MoneyTap, and FamPay, among others, to verify the background of their customers thoroughly before bringing them on board. 

Until now, we at Decentro have been solving dedicated use cases. The need to solve for a complete user journey was the obvious next step that paved the way for the bifurcation and launch of full-stack payments and banking modules, namely, Fabric and Flow.

Curious to know more? With compliance and efficiency being our promise, feel free to reach out if your business wants to solve a use case involving anything linked to banking.

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