While increasing number of consumers in India are demanding a quick and easy digital application experience so they can access funds more easily, a research by TransUnion reveals that current processes are still cumbersome and time-consuming – requiring credit applicants to go through multiple steps and provide several pieces of data and identity confirmation.

This, combined with lenders’ tight control over fraud checks and manual verifications, makes it incredibly difficult for them to meet consumer expectations. About 2.2 crore Indian consumers apply for new credit opportunities every month, said the credit information company.

Analyses conducted by TransUnion recently on the time it takes for credit application approvals in India to complete showed 86 per cent of credit card applications took longer than one day to be sanctioned, of which almost 60 per cent took more than three days to sanction. In the case of personal loans, 77 per cent of these loan applications took longer than one day to be sanctioned, of which 58 per cent took three days or more

In the case of two-wheeler loans, 91 per cent of these loans took longer than one day to be sanctioned, of which almost 65 per cent took more than three days. In the case of car loans, 87 per cent of these loans took longer than one day to be sanctioned, of which 64 per cent took more than three days.

TransUnion’s research also revealed evolving consumer behaviour trends – indicating that 70 per cent of credit applicants dropped mid-way through the application process due to reasons like long application times, too many fields requiring information, requirement for a branch visit or sending paperwork through the post.

The findings show that to be successful in on-boarding customers, lenders need to streamline and modernise credit application processes while managing risks. Additional research confirmed this, showing lenders’ top three priorities were: to improve operational efficiency, to acquire new customers, and to reduce the risk of fraudulent accounts being opened.

Seamless on-boarding solution

To address the aforementioned challenges, TransUnion Software Services has launched TransUnion Seamless Onboarding to help both lenders and consumers experience a quicker and easier digital account opening process.

While increasing conversions, the solution will help strengthen customer loyalty, reduce fraud, and drive operational efficiencies for lenders, the company said in a statement.

Satish Pillai, President of TransUnion Asia, said, “Improving customer journeys can often seem like an insurmountable task. Lenders are often reliant on legacy or multiple systems and have to choose between maintaining them or developing new platforms. TransUnion Seamless Onboarding delivers a full range of identity, fraud, decisioning and credit solutions through a single platform and a single API to make the integration very easy for the lenders.”