How Chatbots Help MFIs: Scoring, Loan Processing And Document Verification In A Bot


Currently, digitalization trends capture more and more companies, including microfinance organizations (MFIs). It is hard to imagine a large organization without a website, mobile application and chatbots that process most user requests without human intervention. Algorithms have already learned how to respond to customers, carefully study their loan applications and make a preliminary decision.

The idea of ​​issuing microloans through a chatbot in a messenger simplifies the interaction between the borrower and the MFI. It makes it possible to assess the creditworthiness of clients more effectively. Should you integrate chatbots into your internal processes? How useful are they for business owners? What responsibilities can and should be delegated to chatbots for issuing loans? In the article, we deal with these issues.

Why Do MFIs Need Chatbots?

In Russia, microfinance organizations continue to gain momentum. Back in 2019, changes were made to 115 federal laws of Russia in terms of simplified user identification by name and phone for amounts up to 15 thousand rubles.

Usually, each stage of obtaining a loan is strictly regulated, complex and time-consuming. This poses difficult challenges for lenders:

  • Reduce the time from scoring a client to issuing a loan.
  • Increase the number of applications received to the number of loans approved and disbursed.
  • Reduce the cost of attracting new customers.
  • Automate processes that require a sizeable qualified team.

In this case, one of the most effective sales tools for MFIs at the moment comes to the rescue – a chatbot for loans. He offers to issue microcredits directly through a social network or messenger. The robot analyzes the client profile, assesses its creditworthiness and decides whether to give a loan to an MFI or not. If the application is approved, the money will be transferred to the card instantly in any way.

Thanks to the data that is in the public domain, the robot finds all the necessary information about a potential client. Based on it, the algorithm will calculate the loan terms or refuse the loan.

How Does A Chatbot For Microcredit Work

The chatbot conducts a dialogue with a potential client in real-time. He accompanies the client at all stages of applying to the MFI: answers questions about the product, help fill out the questionnaire, orients on the conditions, select the optimal loan conditions.

A new client does not need to install additional applications on their phone, leave an application on a third-party site, or go to the office to apply for a loan. It is enough to go to one of the messengers from any device and fill out the form: enter the phone number, passport details and the preferred loan amount. If the client has already applied to the MFI, the chatbot algorithms will automatically pull up all possible information about the client.

The bot will independently collect and analyze all the borrower’s data from open sources and, on their basis, form the final decision on the loan. The whole process from application to receipt of money will take ten minutes.

Deciding to grant a loan is one of the most critical steps in closing a loan application. Each credit institution has its criteria, which it makes the final verdict on. If the borrower meets all the requirements, the application will be approved. Then it remains to offer a profitable microcredit option, both for MFIs and the client.

It would help if you did not worry about the security of this approach – in all modern messengers, such as Telegram, WhatsApp, Viber, data is protected by end-to-end encryption. Only the company that owns the chatbot and the client have access to the messages.

One of the first such chatbots was launched by MigCredit. The company notes that thanks to the introduction of the “robot”, the number of calls from borrowers decreased by four times, the number of emails decreased by 30%, and the load on the online consultant on the site dropped by 15%. A third of borrowers are satisfied with the quality of the chatbot and use it 25% more often than other channels. The load on contact center employees has decreased by 1.5 times – now their resources are needed only in exceptional cases.

While the functions of the MigCredit chatbot are limited, it can share the latest company news, tell you where the nearest branch of an MFI is located, and talk about loan conditions. However, he does not have access to the client’s data, and to find out the terms and payment schedule for a specific agreement, the borrower still needs to contact the bank.

Also Read: Key Benefits Of Microservices Over Monoliths

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