Data is cool but insights are King 👑
Data beats emotions
Apollo has been in digital lending for 7+ years and has lent to more than 20 lakh borrowers across India.
Using combinations of advanced technology with years of lending know-how and a mountain of data, we have kicked off a new era of credit intelligence enabling smarter and safer lending decisions across our portfolio.
Today we’ll talk about 2 such initiatives:
The Crystal ball 📈
One of our first developments using our legacy data is The Crystal ball. So what does it do? It's simple - whenever our credit team needs to finalize a credit policy, they use this magical crystal ball to check how such a policy has performed in the past on similar kinds of loans they intend to disburse in the future.
They just input the policy parameters like loan amount range, tenure, borrower demographics, age, etc. The crystal ball then scans through our entire past loan data matching those criteria and shows the total loans, amounts disbursed, and most importantly, the 30+ and 90+ day loan default rates we faced in the past.
This gives our credit team a powerful predictor to forecast future loan performance and confidently implement credit policies. Further, they can now experiment and see how even a small tweak of any of the factors like bureau policy, loan amounts, tenures, and borrower segments could potentially impact delinquency percentages.
The Pincode Detective🕵️
Just like The Crystal ball, we've built another data-driven tool - the Pincode Detective! This tool helps us understand location-specific lending trends across India.
The Pincode Detective generates loan performance reports based on our past lending in different geographical pin codes. For any pincode, it shows the total number of loans disbursed, the overall disbursed loan amount, and most importantly, the 30+ and 90+ day loan default rates we experienced.
With this localized loan performance data, we can analyze borrower behavior and repayment patterns, area by area, and spot pockets of risk and opportunities with ease!
The Pincode Detective helps us lend smarter by accounting for geographical nuances. We can make informed decisions on slowing down or expanding in specific regions, discontinuing certain pin codes, and even optimizing collections by doubling down on high default areas - all powered by intelligent location insights from our proprietary data reserves.
Both of these features translate Apollo's extensive lending experience and data reserves into statistical significant insights. It’s time to flex those data scientist muscles!