Nucleus Software

An advanced technology platform, designed to deliver agile and efficient solutions while drastically reducing the cost of operations

Retail Lending

End-to-end digital lending across the entire lifecycle of origination, servicing & collections

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Enhanced Agility via Digitizing SME and Corporate Lending

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Interest Free Banking Governed by Shariah Principles

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Digital transaction banking suite that is modular for a composable banking experience

Integrated Transaction Banking Suite – FinnAxia™

FinnAxia™, End-to-end global Transaction Banking Suite; optimally manages Receivables, Payments, Liquidity, Financial Supply Chains and Corporate Trade

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Ensure responsible lending with our API-backed products for easy & seamless connectivity to the financial ecosystem

FinnOne Neo™ mFin

Easy, fast and digitized access to microcredit, anytime, anywhere.

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An offline and online digital cash solution designed to democratize finance.

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Embracing the future – Technology trends for modernizing digital lending

April 19, 2023 | 5 minute read

The ever evolving ‘Digital for all’ landscape has generated higher expectations from banks and their customers, urging lending institutions to make rapid paradigm shifts in the way they operate. Such is the distinction of digital lending transformation, ushering in a new approach to lending and delivering never like before customer products and journeys.

BFSIs have been at the forefront of Digital transformation. When the pandemic hit this industry hard, financial institutions were forced to adopt and harness digital technology at lightning speed. And the stride continues to grow considering the rising investments towards digital transformation of banks across the globe.

Nucleus Software is home to world class digital lending solutions leveraged across 50+ countries.

As per the recent research and industry experts, the top 2023 technology spending areas will be Migration to Public Cloud Services, Advanced Data Analytics, Personalization of Customer Experiences, Cyber Security Enhancements, Open Banking and Automation.

Let’s quickly deep dive into the top 5 trends:

1. Develop a risk-based approach to cloud strategy

Banks and financial institutions are looking to achieve economies of scale at lower capital costs. Many businesses are switching to a cloud-native approach, which places emphasis on portability and functionality across majority of cloud environments. A cloud based digital lending platform allows the loan officers to work from anywhere, making business management a lot easier.

2. Evolve data strategy and commit to data culture

Data powers everything today in financial institutions! The modern banking ecosystem can benefit heavily from analytics as it helps turn massive quantities of data created by banks into valuable and actionable insights. Lending institutions are more productive than ever with intelligent analytics helping them in customer segmentation and an enhanced customer experience, swelling the performance of the bank.

3. Product innovation with a customer centric approach

Personalized customer experiences are crucial to stay ahead in the lending space. Consumer retention and absolute trust is important. As banking experience shifts from product-based to a customer-based model, finding fresh approaches to designing and delivering the hyper personalized services that clients demand becomes inevitable. Technological advancements in product enable borrowers to obtain personalized rates and credit terms before confirming their requirements to any financial provider.

4. Adopt automation

Compressive automation is making businesses more efficient. The excessive amount of repetitive work in banking and financial industry processes call for automation. Emerging technologies like AI and ML boost automation, reduce human intervention and provide cost efficiencies. It is automating and streamlining the lending processes for both borrowers and loan officers. AI has the potential to increase business profits across 16 different business sectors by an average of 38% by 2035.

FinnOne Neo™ is the next-generation digital lending solution built on an advanced technology platform, designed to shape the future of lending. The multi-channel solution helps digitize the complete loan lifecycle, from initial contact with customers to faster credit decisions, backed by comprehensive loan servicing and sophisticated delinquency management. FinnOne Neo™ has been designed to meet the challenges of delivering agile and efficient solutions while reducing the cost of operations. With implementations across 200+ FIs world-wide, FinnOne Neo™ has been recognized as the world’s best-selling lending solution for over 10 years.

5. Increased focus on cyber security

Transforming digitally at a fast pace in the wake of Covid-19 has significantly increased fraud and cyber security risks for banks. During the pandemic, fraudsters misused covid-19 loans. Incumbents had to adapt to deal with new threats, such as synthetic frauds committed via the internet. To stay ahead of these frauds and cyber challenges, service providers need to advance plan against potential cyberattacks.

‘‘By leveraging software that has been built with security and compliance at its foundation, banks can focus on delivering incredibly secure customer journeys while being confident that they are complying with regulators.’’ – shares Dr. Ritika Dusad, Chief Innovation Officer and Executive Director at Nucleus Software.

By the close of 2023, we will have witnessed the transformational impact of trends and how they influence financial services. While it is impossible to predict the future, with the help of advanced digital technology, businesses can prepare for any market fluctuations beforehand.

Jennette Arora

Senior tech lead,

Nucleus Software