Lenders say AI to fintech startups for debt collection

Signs of stress on unsecured consumer loans have seen lenders scouting for effective debt collection mechanisms through fintech startups.

Several like Yubi-owned SpoctoX, Perfios-owned CreditNirvana, Rezolv and Credgenics are using advanced technology-led models to analyse large data sets to predict borrower behaviour, pre-empt defaults by closely monitoring transaction activity on the borrower’s account, and devise effective recovery means for the defaulters.

Venture investors believe small ticket size loans, which have grown significantly over the…