AI, ML shaping the future of fintech with personalisation, fraud detection: Rupyy

In an exclusive interview with Bizz Buzz, Namit Jain, Co-founder & CEO of Rupyy, a leading fintech platform in India, discussed the significant evolution of the country's financial technology sector and Rupyy's role in shaping its future. "There's a major transformation happening in India's fintech landscape," Jain said, highlighting the fusion of financial services and advanced technology. He sees Artificial Intelligence (AI) and Machine Learning (ML) playing a key role in personalising services, providing predictive analytics, and enhancing fraud detection

How do you see the fintech landscape evolving in India, and what trends do you anticipate shaping the industry in the coming years?

I foresee significant evolution in India's fintech landscape, driven by the fusion of financial services and advanced technology. The integration of AI and ML in fintech holds immense potential, enabling personalized services, predictive analytics, and enhanced fraud detection. Neobanks and digital lending platforms are also on the rise, leveraging technology to streamline processes and challenge traditional banking models. Regulatory efforts and partnerships with traditional financial institutions will play a crucial role in fostering innovation and ensuring consumer protection. Additionally, the expansion of fintech into rural areas presents opportunities for inclusive growth through initiatives like financial literacy programs.

What steps is Rupyy taking to expand its offerings and presence across diverse retail categories?

At Rupyy, India’s leading fintech platform specializing in auto financing, we are dedicated to broadening our range of services and expanding our presence in various retail sectors. Back in 2016, when we initiated this business, the used car financing market was relatively small. We take pride in being the largest player, and it's quite challenging to find another competitor even close to our scale. Rupyy boasts the largest market share at 15 per cent in Used Car Financing and aims to expand coverage to 97 per cent of pin codes in the next three to four quarters and capture over 20 per cent market share in used car loans.

Understanding the ever-changing needs of consumers and market dynamics, we have embarked on a strategic journey to enhance our technological innovations and extend our reach.

We continually innovate our technological infrastructure to streamline operations and enhance the efficiency of providing financing solutions across a wide array of retail categories. Our digital-first approach allows us to swiftly adapt to market shifts while ensuring a seamless lending experience for our customers.

Moreover, we prioritize customer-centricity and personalized service, ensuring that our financing options are accessible and responsive to the unique requirements of consumers across diverse retail segments. By emphasizing inclusivity and accessibility, we strive to democratize access to credit and empower individuals to achieve their aspirations.

Rupyy is actively expanding its offerings and footprint in diverse retail categories by leveraging market insights, cultivating strategic partnerships, improving technological capabilities, and maintaining a focus on customer-centric values. Our commitment is to foster positive changes in the retail financing landscape and enable consumers to realize their goals and dreams.

Additionally, Rupyy now offers 2W financing and launched a Personal Loans marketplace in Apr'23, catering to diverse needs with various loan types.

We will be launching a new product line for commercial vehicle financing, effective quarter one of next financial year Despite the high penetration of financing in the used commercial vehicle sector where around 90 per cent of transactions involve financing, there is a lack of digitization and technological integration compared to the passenger vehicle segment. Rupyy aims to implement digital solutions in this segment to streamline the loan process, mirroring their current technological interventions in the used car market Rupyy's strategy involves not only penetrating new markets but also developing new growth engines to sustain its expansion beyond the current market share levels.

In a rapidly evolving fintech landscape, what challenges have you faced, and how has Rupyy adapted?

Rupyy has encountered its fair share of challenges and we tackled those obstacles by prompting strategic adaptations to stay ahead of the curve. Rupyy distinguishes itself in the financial services arena by embodying a trifecta of innovation, inclusivity, and technological prowess. Unlike conventional fintech platforms, Rupyy is purposefully designed to address the unique hurdles encountered by vehicle buyers.

In navigating the evolving fintech landscape, we have continuously fine-tuned our strategies, leveraging innovation and technological prowess to overcome challenges and enhance our value proposition. Rupyy remains steadfast in its dedication to driving positive disruptions in the fintech industry, empowering consumers, and redefining the standards of excellence.

As a leader, what motivates you the most in your role at Rupyy?

My motivation is deeply rooted in the tangible impact we're making every day. Witnessing how our financial solutions enhance accessibility and affordability reinforces the significance of our mission and propels me to steer Rupyy toward further growth and innovation. Leading this transformative fintech venture, which has redefined the landscape of auto financing and continues to set new industry standards, ignites my passion and drive.

What truly energizes me is the convergence of leading a dedicated team, pioneering innovative solutions, and positively impacting our customers' journeys. The dynamic nature of auto finance, coupled with the potential for significant environmental impact, compels us to remain at the forefront of industry trends. Our relentless pursuit of excellence and commitment to creating value for our stakeholders serve as constant sources of motivation, inspiring me to push boundaries and drive Rupyy toward even greater success.

Rupyy's commitment to fostering entrepreneurship, promoting gender inclusivity, and democratizing access to financial services further amplifies my motivation. From empowering women in semi-rural areas to supporting small-town car dealers, our initiatives are creating tangible opportunities for individuals and communities across India. Additionally, our focus on environmental stewardship, exemplified by the introduction of 'Rupyy Green,' reflects our dedication to building a more sustainable future for generations to come.

In essence, what motivates me the most in my role at Rupyy is the opportunity to make a meaningful difference in the lives of others and contribute positively to society. Every milestone we achieve, every customer we serve, and every challenge we overcome reaffirms my belief in the transformative power of our mission. Together, with our team, partners, and stakeholders, I am committed to driving Rupyy forward on its journey to create lasting impact and foster inclusive growth.

What sets Rupyy apart from other players in the fintech space, and how do you maintain a competitive edge?

Rupyy sets itself apart in the auto finance services landscape through a unique blend of innovation, inclusivity, and technological excellence. Unlike traditional fintech platforms, Rupyy offers a tailored solution that addresses the distinct challenges faced by vehicle buyers. Our ground-breaking three-sided model seamlessly integrates consumers, lenders, and car distributors, democratizing credit access even in the smallest distributors in tier 3-4 towns, resulting in impressive approval rates of up to 80 per cent and rapid 2-3 day turnarounds.

Our digital-first strategy incorporates proprietary machine learning fair market valuation and an efficient digital title transfer system, revolutionizing the industry and drastically reducing turnaround times from 50-60 days to an audacious 25-30 days. This commitment to pushing boundaries is at the heart of Rupyy's tech platform, dedicated to solving the unique needs of both vehicle buyers and car distributors.

With $1.8 billion in annualized loan disbursals and partnerships with over 37 lenders, Rupyy leads the fintech sector. Our exceptional NPS score exceeding 75 reflects not only financial success but also underscores our profound commitment to customer satisfaction.

In a market where only 8 per cent of Indian households own four-wheelers, Rupyy's deep and unparalleled reach, technological prowess, and expansive network redefine the landscape, making us trailblazers in the digital lending arena.

Are there specific emerging technologies that Rupyy is closely monitoring or integrating into its operations to stay ahead in the fintech game?

Certainly, at Rupyy, we are constantly monitoring and integrating emerging technologies to stay ahead in the fintech game. One area of focus is artificial intelligence and machine learning (AI/ML), which we leverage extensively across our operations. Our tech platform integrates AI/ML-driven functionalities to enhance various aspects of our services, from risk assessment to customer engagement. These advanced technologies allow us to offer personalized services, predictive analytics, and efficient fraud detection, ensuring a seamless and secure experience for our customers.

Moreover, we are actively exploring the potential of blockchain technology to improve transparency, security, and efficiency in financial transactions. By leveraging blockchain, we aim to streamline processes such as loan approvals, document verification, and asset tracking, ultimately enhancing trust and reducing operational costs.

Furthermore, our commitment to innovation extends to our partnerships and collaborations. We are closely monitoring developments in open banking and API-driven ecosystems, seeking opportunities to collaborate with banks, financial institutions, and other fintech players to expand our offerings and reach new markets.

Additionally, we recognize the importance of user experience in driving customer satisfaction and loyalty. To this end, we are investing in user-centric design principles and digital interfaces, ensuring that our platforms are intuitive, accessible, and engaging for our users.

In summary, Rupyy is dedicated to embracing emerging technologies and leveraging them to create value for our customers, partners, and stakeholders. By staying at the forefront of innovation, we are confident in our ability to maintain our competitive edge and continue driving positive change in the fintech industry.