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The Urgency to Digitize the NBFC Landscape

Non-Banking Financial Companies (NBFCs) have long been the backbone of credit delivery in emerging and underserved markets. But the landscape is changing fast with rising regulatory scrutiny, evolving customer expectations, and increased competition from digital-first players.

Post-pandemic acceleration of technology adoption has made digital transformation non-negotiable for NBFCs looking to scale, remain compliant, and compete with agility. Technologies like Low Code Application Platforms (LCAP), Robotic Process Automation (RPA), Artificial Intelligence (AI), Machine Learning (ML), and Cloud Computing are no longer optional; they are foundational to staying relevant and profitable.

This eBook explores how NBFCs can modernize their lending and customer engagement processes to unlock new value, improve risk management, and deliver superior digital experiences.

The Technology Shifts Reshaping NBFCs

1. Low Code Application Development Build Future-Ready Enterprises

Low code empowers NBFCs to:

  • Integrate easily with credit bureaus, core banking systems (CBS), ERPs, and third-party APIs.
  • Develop and deploy lending applications faster, reducing IT dependency.
  • Adapt quickly to new regulatory norms and customer-driven product changes.
  • Improve governance and risk control with rule-based frameworks.
  • Enable secure, remote work for field agents and loan officers.

Gartner predicts that by 2024, over 65% of application development will be done on low-code platforms.

2. Hyperautomation Infusing Intelligence Across Lending

Hyperautomation brings together BPM, AI, ML, and RPA to streamline high-volume processes:

  • Automate repetitive tasks like data entry, KYC checks, and loan document classification.
  • Enable intelligent, personalized responses through AI bots and digital payment advisors.
  • Predict loan defaults and fraud risks early with machine learning models.
  • Support compliance and audit readiness with real-time monitoring and exception handling.

Hyperautomation is consistently listed among Gartner’s top strategic technology trends.

3. Banking-as-a-Service (BaaS) Embedding Finance Everywhere

BaaS enables NBFCs to embed lending, payments, and insurance into digital ecosystems:

  • Offer embedded credit for seamless financing within e-commerce or digital platforms.
  • Provide transactional APIs to integrate insurance and payments into partner ecosystems.
  • Unlock new customer segments and revenue streams by partnering with non-financial platforms.

Example: A consumer buying a phone online can convert their purchase into EMI instantly at checkout.

4. Hyper-Personalization Winning With Relevance

Using behavioral science and AI-driven insights, NBFCs can:

  • Offer tailor-made loan products based on transaction history, demographics, and spending behavior.
  • Predict life events and proactively cross-sell or up-sell.
  • Build dynamic customer profiles to serve evolving needs in real time.

Salesforce research shows that 66% of customers expect brands to understand their unique needs.

5. Blockchain Building Trust and Transparency

Blockchain strengthens NBFC operations by:

  • Securing data and preventing fraud through encrypted, immutable transactions.
  • Enabling real-time verification of documents and faster loan disbursements.
  • Automating agreements with smart contracts for seamless compliance.

Gartner forecasts blockchain’s business value to surpass $3.1 trillion by 2030.

6. Digital Payments Powering the Omnichannel Experience

Digital payment adoption is driving credit growth:

  • Unified payments interfaces (UPI), NFC, and Bharat QR simplify debt collection.
  • Buy Now Pay Later (BNPL) models expand reach to younger, digitally active borrowers.
  • Real-time receipts and updates improve customer trust and reduce call center dependency.
7. Open APIs & Microservices Building Agile, Connected Systems

Open API and microservices architecture help NBFCs:

  • Achieve faster interoperability between apps and third-party partners.
  • Scale services independently for greater agility and cost-efficiency.
  • Deliver complex functionalities through smaller, adaptable service components.

This modular approach helps break silos and future-proof operations.

8. Cloud Infrastructure Enabling Scalable, Secure Growth

Cloud-based lending platforms offer:

  • Cost-effective scalability to handle high loan volumes.
  • Business continuity with automatic backups and disaster recovery.
  • Anytime, anywhere secure access for employees and partners.
  • Reduced infrastructure maintenance so NBFCs can focus on innovation.

McKinsey estimates cloud technology could add over $1 trillion EBITDA for top companies by 2030.

Emerging Opportunities for NBFCs

  • Branchless Banking: Digital-first models reduce costs and appeal to millennials and Gen Z borrowers who prefer app-based interactions.
  • Co-Lending Partnerships: Banks provide capital while NBFCs bring customer reach and market understanding creating win-win credit expansion models.
  • Embedded Finance: Deeper integration with digital ecosystems to deliver lending and payments at the point of need.

How Newgen Helps NBFCs Transform?

Newgen’s Cloud-Based Loan Lifecycle Management Solution (LLMS) gives NBFCs a unified, future-ready platform to modernize end-to-end lending:

  • Lead & Loan Management: Accelerate credit origination, approvals, and disbursements.
  • Collections & Recovery: Automate workflows, digital payments, and field agent management.
  • Analytics & Reporting: Real-time dashboards and audit trails for compliance and insights.
  • Seamless Integrations: Credit bureaus, core banking, CRM, rating systems, and external APIs.
  • Omnichannel Experience: Serve customers across digital, mobile, and agent-assisted channels.
  • Low-Code Flexibility: Quickly launch new lending products and adapt to regulatory changes.

Trusted by NBFCs globally, Newgen’s platform delivers faster time-to-market, reduced operational cost, and scalable innovation.

Why Acting Now Matters?

NBFCs face unprecedented disruption from fintech challengers to evolving regulations. Delay in digital adoption can result in higher compliance risk, poor customer experience, and lost market share.

By embracing low code, AI, hyperautomation, and cloud-native platforms, NBFCs can:

  • Enhance credit delivery and reduce turnaround times.
  • Scale profitably with secure, compliant systems.
  • Deliver personalized, digital-first experiences to win and retain customers.

Begin Your Digital Lending Transformation

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