Our digital lending solution leverages multi-tenant architecture, security & swift updates: Salesforce's Pargaonkar

Digital lending is rapidly transforming the financial services landscape along with streamlining the lending process for both institutions and borrowers. Cloud-based software company that helps companies with CRM and other applications, Salesforce has also unveiled a digital lending solutions platform. In an interview with TechCircle, Deepak Pargaonkar, Vice President of Solution Engineering at Salesforce, discussed how the solution integrates with its financial services cloud offerings, how Gen AI and predictive AI is being leveraged for better outcomes and more. Edited Excerpts: 

How does your digital lending solution fit into the broader Salesforce financial services cloud offerings?

We offer solutions across various industries, with financial services being a key focus. For India-specific requirements, we've developed unique capabilities to meet local lending needs. It benefits from the entire Salesforce ecosystem, including the multi-tenant architecture and robust security features. Additionally, it incorporates updates from our three annual releases, ensuring it stays current with the latest enhancements and improvements.

What are the key technological innovations behind this digital lending solution? 

Technological innovations in our data model are not just for financial services but are tailored specifically for Indian lending institutions. Let me explain. 

A data model in software contains certain attributes visible on the screen. For example, if someone applies for an auto loan, the system captures details like the type of vehicle (four-wheeler or two-wheeler), engine capacity, price, and down payment.

Additionally, process frameworks or templates are available, reflecting each lending organisation's specific procedures. 

For instance, based on financial profiles, including salary, past IT returns, and repayment history, customers earn points. Other attributes like CIBIL scores also contribute to these points. These templates are pre-configured. 

From a tech innovation perspective, this system leverages Salesforce's capabilities, incorporating Gen AI and predictive AI. These advanced technologies can be used during the borrower’s onboarding process and in the post-loan collection phases. 

All these cutting-edge technologies, including Gen AI and predictive AI, are integrated into the lending capabilities and supported by Salesforce's local, hyper-force, and highly scalable infrastructure in India.

How do you plan to differentiate this solution in the competitive Indian market? 

There are three to four key parameters that set us apart. Firstly, our solutions ensure a faster time to market due to their immediate availability. Secondly, we prioritise continuous innovation by releasing updates three times a year, providing customers with new features and capabilities regularly — something unique to us. Thirdly, Salesforce offers robust security from both an infrastructure and data perspective. This includes advancements in AI and other capabilities like data cloud, which customers receive seamlessly. Additionally, for financial services, we incorporate the latest industry developments into our offerings. 

Achieving scale in India is challenging as businesses often see rapid growth, making it tough to manage. However, Salesforce's infrastructure and robust solutions handle this effortlessly. Our strengths include scale, innovation, security, new capabilities, user experience, and a strong partner ecosystem. These components give us a significant edge over the competition. 

How does the AI-driven decision-making process work, and what kind of data does it leverage to improve lending outcomes? 

When we discuss AI-driven decision-making, there are a few key components. One is a basic score-based system. For example, we consider parameters like a CIBIL score of 700, a strong past repayment history, a specific salary bracket, and an age group. Using these known parameters, we generate a score that helps the underwriter or system determine if the borrower has a reliable profile. 

That's the scoring system. Now, leveraging AI capabilities in these areas, such as using Generative AI for underwriters, enhances decision-making. As shown in the demo, this process goes beyond scoring. It provides insights based on various parameters, such as simple reports, account aggregator data, or property documentation for a home loan. 

Going through all this information manually is time-consuming. Gen AI can quickly summarise the data for the underwriter, reducing turnaround time. Borrowers value quick decisions. Financial institutions might offer similar rates, but a loan approved in two hours instead of two days can be a deciding factor. 

Gen AI helps organisations speed up turnaround times for lending solutions, making underwriters' jobs easier. Predictive AI also plays a role by analysing available data to predict the likelihood of default, providing useful insights for borrower profiling. 

What are the key features designed to enhance user experience for both lenders and borrowers? 

From a borrower's perspective, the experience with financial services can vary greatly. For example, when purchasing a consumer durable item like a television from a store like Vijay Sales or Croma, you might encounter representatives from Kotak, IDFC, or Bajaj. These representatives can quickly process your information—such as your PAN, Aadhaar, or biometric data—to make instant lending decisions. This streamlined process at the point of sale makes purchasing easier. 

For larger loans, like a home loan, the process is also quick and transparent. Borrowers can track their application status and next steps via mobile apps or websites, ensuring they are always informed. Key components of a good borrowing experience include fast turnaround times, clear communication, and real-time status updates, alongside competitive product offerings and lending rates. 

From the lender's perspective, efficiency in decision-making is crucial. Lenders need systems that offer visibility into the borrower's profile, integrate seamlessly with external and internal validation sources, and enable smooth collaboration among stakeholders. Quick turnaround times are essential for acquiring new borrowers. Post-acquisition, continuous access to information and support is vital, as borrowers often manage their finances outside of traditional working hours. Providing multi-channel support through calls, emails, or mobile apps enhances borrower convenience, allowing them to engage and resolve queries at their own pace. 

How are you planning to leverage emerging technologies to further evolve this product? 

Our advanced analytics capabilities are widely used by financial services institutions. They rely on our solutions for regular decision-making based on data. This includes monitoring product performance, borrower behaviour, repayment trends, collection situations, and branch targets. Our tablet solution supports scenario modelling and trend analysis, ensuring our clients have the insights they need.