Only in India: State Bank of India (SBI), the largest lender in the nation, has developed a novel technique to guarantee that borrowers pay back their loans on time. This novel strategy aims to address retail borrowers’ loan defaults.
SBI has observed that customers who are close to missing their monthly loan payments frequently disregard calls from the bank to remind them. SBI is visiting these borrowers at their homes in order to address this issue, and here is where the chocolate comes in.SBI has partnered with fintech firms that employ artificial intelligence (AI) to carry out this innovative plan.
Although the bank has not yet released the names of these fintech partners because the effort is still in the pilot stage, this strategy has so far produced encouraging results. Only 15 days have passed since the programme began, and if it continues to be effective, SBI intends to formally announce the relationship.The banking industry has increased its retail lending, but as interest rates have risen, so have the levels of delinquency. SBI’s retail loan portfolio increased significantly in the June 2023 quarter by more than 16.46%, reaching $12,04,279 crore from $10,34,111 crore the year before.
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