Poonawalla Fincorp launches AI-base underwriting solution

Non-banking financial company (NBFC) Poonawalla Fincorp has launched an Artificial Intelligence (AI)-powered underwriting solution. The Cyrus Poonawalla Group promoted NBFC developed this solution in collaboration with IIT Bombay to automate and streamline the credit evaluation process. The company said that this solution aims at boosting its credit managers' productivity by 40 per cent in retail lending.

The new solution aims to accelerate credit decisions by ensuring an efficient, scalable, and risk-first approach, the company said in a statement. It analyses multiple data points from loan applications to help credit managers make decisions and enhance the overall risk management framework of the company. 

The AI solution integrates Large Language Models (LLM) and Machine Learning (ML) platforms to create an automated and intelligent credit decisioning system. Built from the ground up, it focuses on real-world underwriting demands, keeping the human cognitive model at the core of its architectural design. 

“At Poonawalla Fincorp we fully respect and understand the transformative impact of AI in reshaping the credit landscape. We are delighted to launch our groundbreaking solution, blending AI innovation and human judgment in credit underwriting. With this initiative, we position ourselves as paradigm pioneers, driving transformation in our industry,” said Arvind Kapil, managing director and CEO of Poonawalla Fincorp.

In the next phase, PFL aims to evolve its current AI functionality to a more sophisticated self-learning AI model. These will leverage powerful deep learning algorithms, enabling autonomous decision-making, continuous system improvement through pattern recognition, and multi-modal communication capabilities.

Notably, in February, the company partnered with ServiceNow to implement AI-powered solutions for audit and governance. This initiative aims to improve efficiency, automation, and compliance in its operations. The company has also integrated AI into its human resource (HR) processes to manage risks and enhance accuracy in hiring.