A healthy loan portfolio is every
finance institution’s dream. There is
immense competition for quality borrowers in the loan market. As the market
size is limited, the finance institutions keep innovating to improve their market
share.
HDFC Bank-India’s premier private
sector bank has introduced a major innovation in loan disbursal's.
The innovation is based on India’s
Biometric Authentication Scheme-Aadhaar
HDFC
Bank has launched an auto loan that is disbursed in just 30 minutes using
biometric technology.
Target
Clientele: All adult Indians with an Aadhaar Number. This includes HDFC Bank customers
as well as prospective customers.
Approval
TAT: Loans for 4 wheeler’s – 30 minutes
Loans for 2 wheeler’s-15
minutes
Process
flow:
- Any person wishing to avail of a loan, walk’s into an
auto dealership or any other touch points of the bank and provides the
Aadhaar card number and fingerprint.
- The biometric technology available at the point of
customer contact will match these details against consolidated
information accessed from several databases to authenticate customer
profile.
- If eligible, based on the profile, the loan will then be
approved with minimal documentation required from the customer within
record time.
- After submitting the documents and paying the margin
money (over and above the loan), the customer can walk out with the
vehicle.
Benefits:
- Provide freedom to the customer to walk into a showroom
without any documents and obtain a loan.
- Reduce the turnaround time to process a loan, allowing
the bank to improve efficiency and serve a larger number of customers.
HDFC Bank is the
first institution in the retail lending space to completely automate the entire
process of loan approval and disbursement with the launch of the 10-second
personal loan.
HDFC Bank has
already deployed the biometric device across 60 two-wheeler dealerships and 200
car dealerships. By this year end the business plan is to deploy this
technology in 400-500 dealers across the country in the case of two-wheelers and
300-400 car dealers
