To provide a reliable and secure solution that will
re-imagine and accelerate the process from
Lending to Securitisation; addressing the needs
of data privacy, regulatory compliance and
insights for all stakeholders …
TCS Lending and Securitisation
| Copyright © 2018 Tata Consultancy Services Limited
1
NBFC Sector – Recent Trends
Recent Trends* SECURITISATION – FACTS
Lending Volumes: FY19
• Total NBFC credits – Rs. 19.84 lakh crore (As on Sept, 19) 123 %
• NBFC Credits to Retail Lending – Rs. 4.38 lakh crore
Rs. 2 Lac Cr.
• Auto – Rs. 1.94 lakh crore
• Housing – Rs. 0.16 lakh crore
• Consumer Durables – Rs. 0.11 lakh crore
Go to Universe:
• No. of deposit taking NBFCs – 108 with Asset Book of Rs. 3.41 lakh crore
• No. of non-deposit taking NBFCs (Systematically Important) – 276 with Asset Book of Mar’19 CRISIL Qrtrly Report
Rs. 16.42 lakh crore ▪ Rs. 20K Cr. of ABS
• No. of other non-deposit taking NBFCs – 9,806 with asset book of Rs. 2.54 lakh crore ▪ Rs. 9K Cr. of MBS
Available for Securitisation
Securitisation Factsheet:
• Housing, Auto, CV, Construction Equipment, Two Wheelers and Tractor are the most Q1 - FY20
widely securitised assets
Rs. 50K Cr.
• Retail securitisation volume more than doubled to Rs 2 Lac crore in FY19, compared
with Rs 85,000 crore for FY18
*Source: RBI Report
Need for an E2E Solution for Banks and NBFCs
Fintech and startups are disrupting the
market with innovative lending Banks and NBFCs are using data
solutions which has broadened the and analytics innovatively and
market, reduced the TAT significantly come up with cognitive,
and have redefined customer credit connected and collaborative
evaluation processes Standardisation and uniformity in
the data and the lending process
being followed, will help accelerating
Credence, auditability and the securitisation process
transparency of loan book is vital for
Customers expect frictionless
enhancing the overall efficiency and
lending experience with
quality of the securitisation
digital, cognitive and
transactions Financial institutions operate on a set of disparate
omnichannel presence
systems for their loan processing (origination and
servicing needs), leading to issues in the integrity
Securitisation is used as a and quality of the underlying loan book -
means of sourcing funds or
fulfilling the priority sector
obligations
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“TCS Lending and Securitisation Solution” – Connected, Cognitive and Collaborative
Blockchain based collaborative solution for Acquisition to Securitisation on a
Stakeholders Ecosystem
“Trusted” and “Secure” loan book
NBFCs Lending Securitisation Regulatory
Agencies
Lead Loan Loan
Banks Pool Creation
Management Service Credence
Credit
Borrowers Bureaus
Digital Loan Portfolio
Pool Rating
Onboarding Collection Review
CRA
Aggregators
Investors Loan Pool
Loan Insights Pool Insights
Origination Management
Service
Intermediaries providers
Stakeholder Services Consent Billing
Onboarding Subscription Management Management
A solution for Lending and Securitisation integrating all stakeholders and enabling their business functions in a
secured, trusted and transparent manner
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Service Catalogue – Illustrative
What are the Customer Digital Loan Origination Loan Loan Loan
Services ? Reln. Mgmnt. Origination System Servicing Credence Securitisation
Referer Mgmnt. Digital Onboarding Loan Origination Account Creation Profile Stamp Contracts Setup
Lead Mgmnt. Document Mgmnt. Field Inspection Loan Servicing Social Stamp Pool Creation
Case Mgmnt. E-KYC Technical Evaluation Financial Acctng. IU Stamp Pool Rating
Query Mgmnt. Application Mgmnt. Risk Containment Opr. Reporting Pool Download
What are the Repayment Stamp
Sub-Services 3rd Party Integration Legal Evaluation Regl. Reporting
Pool Analytics
Cr. Bureau Stamp
offered? Pool Securitisation
Geo Tagging Personal Discussion
Portfolio Review
BRE Integration 3rd Party Integration
MIS
Who Can NBFC, Bank,
NBFC, Bank NBFC, Bank NBFC, Bank NBFC, Bank NBFC, Bank
Subscribe ? Investor, CRA
At what level
At Service At Service At Service At Service At Service At Service
is it Priced ?
Per user/ ▪ Per account created
How is it reference per Per loan originated Per loan logged in ▪ Monthly servicing
Per credence per Per account in
Priced ? account the lot
month charge per account
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TCS Lending and Securitisation Solution
Lending Solution:
▪ Lead management, case management and sales enablement : Comprises end-to-end lead management, query-
response-complaints, pipeline management, auto-allocation of leads, conversational systems to assist sales and query
resolution, and automated emailing/voice response using NLP techniques
▪ Digital Origination: Supports self-service and the assisted-mode sales by offering end-to-end digital onboarding
capabilities such as EKYC, customer onboarding, basic application creation, third party integrations for credit checks
and assets validation. This platform is equipped with geo tagging, geo fencing, route optimization, chat bots, virtual
assistance, pattern recognition, intelligent document extraction and other cognitive features
▪ Loan Servicing: Services include account and customer creation, disbursal and receivables management, probability of
default calculations, NPA processing, foreclosure/normal closure/write-offs and risk assessment using advanced
analytical techniques
▪ Collections: Provides real-time and accurate collection updates, empowering the collection fleet to take timely and
appropriate actions through mobility and web-based solutions
▪ Insight and Analytics: Customizable dashboards and cognitive features of Securitise provide insightful details into the
loan books for consumption of the investor and other stakeholders. Industry-specific MIS reports, regulatory reports
and data models will be available under this module
▪ Loan Book Credence: The platform assists the originators and investors to enhance ‘Credibility’ in the loan book and
loan pools. Loan credence is provided at the process level by confirming the availability of documents, validating the
process of the loan originator and by independently verifying the details
TCS Lending and Securitisation Solution
Securitisation Solution:
▪ Loan Book Configuration: Originator of Loans can configure the loan book on the Platform. Configuration of the loan
book enables further actions of pool creation and pool management for securitisation
▪ Pool Creation: Platform enables pool creation from the loan book configured. It provides filter criteria based on the
loan parameters which can be used to create pools as per the specific needs of investors. Platform ensures regulatory
compliance during pool creation activity
▪ Pool Rating: Pool details can be shared securely with selected rating agency after providing consent. The rating of the
pool and the supporting rating documents are provided by the rating agency on the platform
▪ Pool Management: Rated pools can be securely displayed to select investors as per the requirements of the originator.
Once the investor has expressed interested in the pool; select details can be shared wit the investors to resolve
queries and enable the due diligence process of securitisation
▪ Portfolio Review: Portfolio of loans can be tracked once the securitisation is completed. Platform will support
servicing and performance management of the investments.
▪ Pool Insights: Pool insights provides facility to create customized charts and graphs of the pools. These can be created
on the basis of the parameters of pools easily.
Engagement model – E2E Play
1 ACQUISITION TO SECURITISATION
LOAN TRUSTED LOAN NBFCs who have
MANAGEMENT LOAN BOOK SECURITISATION subscribed to end to
end services will have
▪ Origination ▪ Configure ▪ Pool Creation
ANOMALY DETECTION
the trusted loan book
▪ Servicing ▪ Setup ▪ Pool Rating by design, which will
VISUALIZATION
STAKEHOLDERS
▪ Collection (customer, accounts, ▪ Pool Sell off provide “trust” and
disbursements,
…..
▪ Insights repayments, NPAs) ▪ Pool Insights “credence”; thereby
bringing in the
necessary
QUARTZBLOCKCHAIN
TRANSACTION REGISTRY
REGISTRY
transparency in the
CREDENCE STAMPING Securitisation and
audit processes
CONSENT FRAMEWORK INSIGHTS, AI, ML
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Engagement model – Enable Securitization
2 SECURITISATION
LOAN TRUSTED LOAN NBFCs who are on
MANAGEMENT LOAN BOOK SECURITIZATION different lending
solutions can
▪ Origination ▪ Configure ▪ Pool Creation
ANOMALY DETECTION
configure their loan
▪ Servicing ▪ Setup ▪ Pool Rating book on this platform,
VISUALIZATION
STAKEHOLDERS
▪ Collection (customer, accounts, ▪ Pool Sell off which will provide
disbursements,
…..
▪ Insights repayments, NPAs) ▪ Pool Insights “trust” and
“credence”; thereby
bringing in the
QUARTZBLOCKCHAIN
TRANSACTION REGISTRY
REGISTRY
necessary
CREDENCE STAMPING transparency in the
Securitisation and
CONSENT FRAMEWORK INSIGHTS, AI, ML
audit processes
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Benefits
▪ Seamless cognitive experience: Brings together best practices in lending and securitisation to enhance customer
experience
▪ Speed: Accelerates transactions through frictionless collaboration between stakeholders and ecosystem integrations;
reduces time-to-market of products and services
▪ Reduced cost: Lowers cost of transaction by eliminating manual effort; offers pay per use
▪ Security, reliability and privacy: Ensures transparency, auditability and immutability with blockchain-based
architecture, data confidentiality through consent-based, configurable data access
▪ Increased focus on Core Business: Frees up resources by offering IT-as-a-Service
▪ Appropriate value: Facilitates price discovery, ensures appropriate value for loan pools with stakeholders available on
a single platform; offers AI/ ML-based pricing and risk models
▪ Regulatory compliance: Helps meet priority sector lending obligations via investments in priority sector pools
▪ Ongoing visibility: Warrants ongoing visibility and assurance of loan book through periodic credence stamping
Value Proposition
DELIVERING By DRIVING By LEVERAGING
SPEED ▪ Frictionless Collaboration
▪ Ecosystem Integration Ready to use APIs
of transaction
▪ Transparency of Process Blockchain
RELIABILITY ▪ Auditability of Transaction
of process ▪ Immutability of Data Smart Contracts
CONFIDENTIALITY ▪ Consent based Controlled access Consent Framework
of data ▪ Secure Data exchange
ASSURANCE ▪ Auto-triggered Credence Stamps AI, ML
of lifecycle ▪ Pre-configured and Flexible Insights Insights
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Thank You
