Best FinTech StartUp Campaign 2018
Finzy
The Campaign
Finzy is a digital peer to peer lending platform, registered with the RBI as an NBFC-P2P that connects verified borrowers who are looking for affordable personal loans, with investors who are looking to invest in a new asset class, that provides regular risk optimised returns. As a C2C tech-driven platform, Finzy provides value to both borrowers and investors.
Borrowers looking for personal loans now have a viable alternative with EMI’s starting as low as 10.99% p.a. Their unique credit assessment procedure looks beyond credit scores and company of employment, leading to larger financial inclusion among borrowers. All Finzy loans have a fixed loan tenure of 36 months with no prepayment charges, giving borrowers the flexibility to easily repay their loans. They have their own sales team for borrower sourcing, as well as a collections team to regularise delays in the event of their occurrence.
As an asset class, finzy provides investors with fixed monthly returns at an average ROI of 15.5%. Their careful sourcing of borrowers combined with their proprietary credit assessment procedure has resulted in zero defaults and NPA’s in sixteen months of operations. At Finzy, they aim to make investment easy for customers by implementing algorithms to help them invest, ensuring portfolio diversification to minimise risk, allowing them to compound their returns through reinvestment, and consolidating multiple EMI’s on their behalf.
Finzy’s four founding members have a cumulative experience of 75 years across a wide array of industries. Amit More, the Founder & CEO of Finzy is the stalwart in the Indian Banking & Financial Services industry with over 15 years of experience in a wide variety of organisations across commercial banks as well as at Non-Banking Financial Companies. Having worked with organizations like ThoughtWorks, Sabre, MindTree, Siemens & Amadeus, Abhinandan Sangam is the Co-Founder and CTO of Finzy and is an expert in building capabilities – both in Products as well as People. With 23 years of Sales, Marketing & Distribution experience in companies like Toyota, TVS and Dunlop, Vishwas Dixit, finzy’s Co-founder & CMO is an expert in market expansion projects as well as pan-India channel management & CRM. Identifying himself as a storyteller, finzy’s CIO & Head of Product, Apoorv Gawde has over a decade of experience in building products and has created and delivered products across different domains.
The Finzy team has been growing incredibly rapidly in conjunction with the growth of our platform. As of now, the team consists of 75 employees across five departments, more than double that of the 31 employees last November. They have had 19 new employees join them in the last two months.
They are proud to serve investors all over the country and borrowers across eight major cities.
The Idea
As an asset class, finzy provides investors with fixed monthly returns at an average ROI of 15.5%. At finzy, they aim to make investment easy for customers by implementing algorithms to help them invest, ensuring portfolio diversification to minimise risk, allowing them to compound their returns through reinvestment, and consolidating multiple EMI’s on their behalf.
A few of their product innovations are as follows:
Description: Finzy’s holistic credit scoring system takes in 130 unique parameters to evaluate credit worthiness and does not regard scores from CIC’s. This has helped them better assess the borrowers on the platform.
Improved Customer Convenience: A track record of zero defaults and NPA’s in 15 months of operation speaks volumes of the effectiveness of our scoring system. Its accuracy minimises risk for investors and ensures that the right borrowers are listed on the platform.
Increase in Revenue: Its holistic nature increases financial inclusion for potential borrowers who were previously limited by a few specific parameters.
Description: FinzyPRO is an algorithm which assigns investor funds to loans with varying ROI’s, with the aim of portfolio diversification. This allocation of funds is finalised only after investor approval. This helps investors complete investments with a click of a button. A complementary feature called FinzyQ automatically queues remaining funds for immediate assignment in the event of loan scarcity.
Improved Customer Convenience: FinzyPRO helps investors optimize their risks and returns. It ensures ROI heterogeneity and strikes a balance between conservative and risky investments, all at the click of a button.
Reduced Turnaround Time: FinzyQ’s ability to queue and assign funds instantly reduces turnaround time for both borrowers and investors.
Description: Reinvest-Pro can automatically allocate prepayments as well as the interest and principal components of EMI’s into new loans as they are received. Investors can decide the sections of their returns to be reinvested, and they can switch off reinvestment at any point.
Improved Customer Convenience: Reinvest-Pro gives investors the ability to maximise their returns through the power of compounding. Its system of monthly loan acquisition allows for constant and automatic portfolio diversification.
Reduced Cost and Turnaround Time: Reinvest-Pro also allows them to maintain funds on the platform for longer time periods, leading to faster and more efficient loan fulfilment for borrowers.
The Execution
Finzy has a unique feature called FinzyPRO that is capable of allocating investor funds within seconds across multiple diverse loans at the click of the button. This feature has been a part of their platform throughout their seventeen months of operations. More than 75% of their investor portfolios use FinzyPRO for fund allocation, reflecting consumer confidence in their platform.
One of Finzy’s most remarkable features is Reinvest-Pro. It automatically reinvests EMI’s into new loans on behalf of investors, allowing them to greatly increase their returns through the power of compounding. They went live with the feature in August 2018, and in three months they have seen massive adoption from their investors, especially from new ones.
While they have been conducting most of their business in Bangalore through word of mouth, they have now launched radio campaigns across multiple cities to increase investor logins. They had recently launched a campaign #FinzyKiyaKya over radio which garnered immense traction. They have also launched online campaigns on Facebook, Google, and on publisher network such as Economic Times, Outlook Money and Business Standard. With just the right mix of communication and adding value, their daily influx of customer queries has reached 200 (lenders) via their website and various digital and inbound channels.
The Result
Their careful sourcing of borrowers combined with their proprietary credit assessment procedure has resulted in zero defaults and NPA’s in seventeen months of operations.
Finzy’s growth has been exponential, with their monthly disbursal amount going from INR 28 lakh in August 2017 to 1 crore in March 2018 to 2 crores in August 2018. This corresponds with the growth of their monthly disbursal numbers from 21 in June 2017 to 88 in August 2018. Each of these loans has a 36-month tenure, which is done in order to ensure that borrowers can easily repay their debts. Therefore, they sanction every loan with the expectation that it will be a revenue stream for them and their investors for a maximum period of three years.
They have completed two rounds of funding: seed and pre-series A. The total funding raised has been USD 2.3 million, which they have been using as financial support while they expand their reach and streamline their systems.
They are proud recipients of Outlook Money’s Most Promising Fintech for creating Impact Award for 2018.
Investor/lender Testimonial: ‘All my life, there was a sense of having money but traditionally kept in fixed deposit with money at bank and returns very less, till I was introduced to finzy. Now all my FD has been moved to finzy and I get almost 2.5 times FD interest coming to me every month, that’s smart – it helps me take care of my monthly expenses without depending on anybody + my investment is getting reinvested.’
Borrower Testimonial: ‘I wanted a loan of INR 50000 for my honeymoon flight tickets. Finzy gave me a loan at 10.9 percent with a flexible repayment rate, and the money was credited to my account in two working days.’
To view the campaign video: https://www.youtube.com/watch?v=plGkcXGfnnk
https://www.youtube.com/watch?v=Xvnt7nCRhOU
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