The World's Best Online Financial Derivatives Institution 2023 March2023

The Benchmarks of Reliability

Wecanallagreethatleadershipstylesseverely

impactemployeeproductivity,interdepartmentalcommunication,andproductand businessdevelopment.Leadersareessentiallymeantto enhanceemployees’commitmenttowardsreachingtheir fullpotentialinachievingavalue-addedsharedvisionwith integrityandpassion.

Theroleofprogressiveandvisionaryleadershipisallimportantwhenitcomestonewsectorslikefintech. Leadershipneedstobeabletoenvisagethefutureandbe aheadofthecurvewhenitcomestotakingboldbusiness decisions.Thefutureofbusinessliesindigital transformation,anditrequiresapragmaticleaderwiththe foresighttosettheenterpriseontherightpath.

Financialservicesbusinesseshaveundergonemorechange inthelastthreeyearsthaninthelastthreedecades.It’svery importantforpeopleleadingengineeringandproductteams withinfinancialinstitutionstorespondquicklytomarket dynamics,underlyingtechnicalchangesandimprovements totheirservices.

Leadersalsohavetoshowalotofempathytowards customersandtheirneeds,whichhasbecomeoneofthe mostimportantfactorsinthesuccessofnewfinancial servicescompanies.Overall,beingresponsibleforother people’smoneyisachallengingtaskandbeingaperson withalotofintegrityandempathyisoftheessence.

Leaderscomeindifferentshapesandsizes,andpeoplefrom differentbackgroundsandexperiencestendtobringunique perspectivesonthings.Asthefintechlandscapeisevolving rapidly,weneedpeoplewithmoreandmorediverseideas onhowtomakefinancialtoolsuniversallyavailableto empowerpeopletowardstheirindividualprogress.

Thisrequiresagoodunderstandingofhowtechnologyis evolvingintermsofpayments,banking,investing,and lending,amongothers.Atthesametime,onealsoneeds goodobservationskillstowardconsumerbehaviourand trends.

Mappingthejourneyofthevisionaryleaderswhoare transformingthefutureofthefinanceindustry,Insights Successshedslighton‘TheWorld'sBestOnline FinancialDerivativesInstitutions.’

Flipthroughthepagesandindulgeyourselfinthe odysseyofprolongedexcellence.

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Cover

August, 2022

Business

Aditya Gaikar

Revati Badkas

Jenny Fernandes

Anish Miller Sonia Raizada

The World's Best Online Financial Derivatives Institutions

BusinessFinanceDepotoffersfinancing,marketing, construction,anddesignservices.

DavidBlack CEO CoatesFinance

Withover20yearsofexperience,CoatesFinanceensuresyou thebestguidancefromthesmartestpeopleintheindustry

BrianVieaux President Finlocker

FinLockeroffersthenextgenerationincustomerrelationshipbasedperformancemarketingtoempowermortgage originators,lenders,servicers,banks,creditunions,andcredit counselorstoprovidetheircustomerswithpersonalized financialsolutionsandexperiences.

NaserTaher Chairman MultiBankGroup

AdeshinaAdewumi CEO TradeLenda

MultiBankGroup’scutting-edgetradingplatformsoffers groundbreakinglevelsofstabilityandreliability

TradeLendaisdigitalfinancialservicesolutionenablingaccess tocreditforMSMEsleveragingalternativedatasourcesto qualifycharacterandcapacity

Brief

CompanyName

FeaturedPerson

PaulBosley Founder

BusinessFinance Depot

Marking the Crucial Facets of Financial Fundamentals

Capitalisanimportantcomponentofevery

commercialenterprise.Businessorganizations needfundsfortheirdevelopment,revamping, expansion,andnewinitiatives.TheNon-BankingFinance CompaniesalsoknownasNBFCshaveplayedapivotal roleinmeetingthefinancialneedsofindividualsand businessesthathavetraditionallyremainedun-servedor underservedbybanks.

WithstricterregulationsonNBFCs,thecostofborrowing hasincreasedandNBFCsarefocusingonnichemarkets andpersonalizedproductsandservices.Thishaspropelled theNBFCsondevelopinginnovativeproductsandcatering tolow-income,urbancustomersinunorganizedsectors.

Supportedbytheinnovationsinthefintech,NBFCsare adoptingbusinessandoperationalmodelspoweredby

technologiesthatseamlesslyfacilitatethedesign,launch, implementationandexecutionoftailoredproductsand services.Investinginnewtechnologiesandstrategic partnershipswithincumbentfinancialinstitutionsand FinTechsalsoallowsNBFCstolowertheircostswhenit comestoincreasingtheircustomerbase,loweringcustomer acquisitioncosts,servicingexistingcustomersorde-risking theportfoliowhiletryingtoovercometheincreasingformal creditpenetrationinagrowingeconomy.

Today’sFinTechcompaniesareefficientlymakinguseof new-agetechnologiestoovercomechallengesandbuild productsandservicessuchaslast-milereachanddelivery, alternativecreditmodels,frauddetection,regulatory compliance,enterpriseautomationforaccounting,treasury, andreconciliationfortraditionalNBFCs.

ArtificialIntelligence

ArtificialIntelligence(AI)isacutting-edgetechnologyfor theNBFCs,thathaselevatedtheirdecision-makingprocess andhasexpandedtheir360-degreeperspective.Inthe beginning,AIandMLtoolsassistedNBFCsprimarilywith creditandriskmanagement;AIisnowanecessitythatcan beeffectivelyleveragedacrossdepartments.Ithashelpedin thescrutinizationofthecreditaspectsfortheMSMEsand developedadeepunderstandingofthemicromarket. NBFCsusealotofdataandexternalapplicationstocreate theirunderwritingmodelswhichconsiderthebusiness segment,hyperlocalgeo-analyticsandotherbehavioral attributesofthesmallentrepreneurs.

RoboticsProcessAutomation

Thedevelopmentsintechnologieshavehelpedin automatingseveralprocessesinthefunctioningofthe NBFCs.TherecentapplicationsofRoboticsProcess Automation(RPA)havecontributedtoexecutingdata management,documentverification,scrutinization, analyticsandprocessing.RPAhasenabledpaperless processingwithimmediatereal-timereconciliationthereby expeditingthebusinesscyclesatafastermomentum.RPA hasassistedinfasterloanprocessingfromoriginationto disbursement.

AdvancedAnalytics

ProgressiveNBFCshaveimplementedprocess-driven analyticssolutionstoshowcasetheflexibilityprovidedby dataanalyticsandadvancedanalyticsmodelstoforecast customerdefaults. AdoptingSoftwareasaService(SaaS) modelshaveminimizedtheupfronthardwareand infrastructurecost.Thesolutionfeaturesananalytics platformallowinguserstosliceanddicedataacrossvarious dimensionstogaininsightsintoloanapplicationportfolio, exposureandfundingaspects,customer,andloan performanceThesolutionofferedanalysistoenable decisionsforcorrectiveactionsintermsoftheirresponse time,applicationaging,collectionperformance,salesteam performance,andmore.Ithashelpedinexploring,tapping andservingtheundeservedandunservedstrataofthe economictable.Advancedanalyticshasoffered24X7 customersupportwithhigherscalabilityandagility

APIAdvantage

ModerntoolslikeApplicationProgrammingInterface(API) arerecenttrendsinBankingandFinancialServices.They

areasetofgeneralinformationthatallowstheadmittance ofsoftwareprograms.ThistechnologyenablesNBFCsto sharetheirdatathroughthird-partyapplications.

APIsaretransformingbusinessesbyofferingendless possibilitiestobanksandfinancialcompanies.Accordingto aResearchandMarketreport,bytheendof2024,the globalAPImanagementmarketisexpectedtoreach$6.2 billion.Ascompetitionrisesbetweentraditionalbanksand fintechstartups,bankshavestartedoptingforAPIsto embraceadigitalecosystemandassimilatemoreglobally

ByembracingAPIs,NBFCsareenhancingtheirservices andrapidlyadaptingtotheevolvingdemandsofthe customers.BankingAPIsfacilitateeasyandfastKYCand onboarding,openingaccounts(virtualaccounts,savingsor businessaccounts),fintechpayments,debitcards,and launchingBNPLproducts,thismakeswayforbetter businessgrowth,customerengagement,andretention.

BlockchainTechnology

TheBlockchaincanstreamlinebankingandlending services,reducingcounterpartyrisk,anddecreasing issuanceandsettlementtimes.Itallowsauthenticated documentationandKYCdata,reducingoperationalrisks andenablingreal-timeverificationoffinancialdocuments.

Themodernblockchainenablesmoreopen,inclusive,and securebusinessnetworks,sharedoperatingmodels,more efficientprocesses,reducedcosts,andnewproductsand servicesinbankingandfinance.Itenablesdigitalsecurities tobeissuedwithinshorterperiodsoftime,atlowerunit costs,withgreaterlevelsofcustomization.

Digitalfinancialinstrumentsmaythusbetailoredto investordemands,expandingthemarketforinvestors, decreasingcostsforissuers,andreducingcounterpartyrisk. Blockchainenablesreal-time,multi-partytrackingand managementofbankguaranteesandlettersofcredit.

Automatedcompliance

Dependonfasterandmoreaccuratereportingwithan automatedcomplianceprocessthatdrawsonimmutable datarecords.Benefitfromthenearreal-time,point-to-point transferoffundsbetweenfinancialinstitutions,removing frictionandacceleratingsettlement.91%ofBankshave investedinBlockchaintechnologiesin2018. Approximately66%offinancialinstitutionsarerunningat scalewithblockchain.

Embracing the Convergence of Open Banking and Generative AI to be Purposeful in Consumer Lending

Consumerlendinghasevolvedintoasophisticated enterpriseofdata-drivenpersonalization,hyperlocalsegmentation,andreal-time,always-on digitalmarketing,tryingtofindtheperfectofferforthe rightconsumeratthemostopportunetime.Itisallabout 'leads'andabout'conversion.'Financingahousethrough mortgagelendingisnoexception.Whatusedtobea predominantlyrelationshipbusinesshasreinventeditselfon theinternet-social-digitalstageandisworkingonplayinga biggerpartinthedigitaltransformationofourdailylives.

Throughthisanalyticalmachine,though,fallthroughmany thatdon'thavethehighest'conversion'value–consumers whomaynotimminentlymakeapurchaseand,therefore, arelessvaluableforthetransaction-drivenrevenuemodels prevalentinmostfinancialservicesmarketing.While perfectlyrationalonthesurface,how,then,shouldwelook attheimpactofthistransformationonthoseconsumers who'needsomehelp'?Thosethat(i)maynothavethe historicaladvantagesofbeingabletobuildcredit,(ii)that havehadabumportwointheirpastcredithistoriesdueto structuraleconomicconditions,and(iii)thosethatselfselectandsitoutofthemortgageprocessbecauseof variouslevelsofuncertaintiesandintimidationsthatpresent themselves.Marketingmachinestendtoensnarethis populationinless-than-idealcreditproducts,often unsustainablefortheborrower,furthercompoundingtheir economicviability.

Hereinliesanopportunityforseasonedindustryveterans andalwayshungry-to-learntechnologiststopursueapath ofinnovatingwithapurpose:tomakethatfirst homeownershipopportunitypossible,makecreditforthat firsthomeaccessible,andsetourconsumersonapathfor sustainablewealth-building.Themortgageindustrycando thisbyridingontwofundamentaltechnology transformationsthatwillunderpinhuman-computer interactionsfordecadestocome…openbankingand generativeartificialintelligence.

Openbanking,theconceptofmakingaconsumer's financialdatasecurelyavailableuponconsent,isadriving forceofinnovationforfintechsinthebankingindustry,who havealreadytransformedourdailyliveswithnumerous productsandservices.Wecanaccessourbankaccounts whileonawebsite'sshoppingcart,transferbankaccountto-bankaccount,andnotwritechecksorusecreditcards thattakedays,ifnotweeksormonths,tosettle.

Thereisatonofinnovationhere.Openingbankingcanhelp lendersobtainamoreaccuratepictureofaconsumer's financialsituationandrisklevelbyresponsiblyidentifying theirwillingnesstopaytheirmonthlyrecurringobligations, forexample,utilitiesandrent,andcreateaviable alternativetoconventionalcreditscores.Thisdevelopment hasbeenagamechanger,especiallyforthosewithnocredit orthincreditfiles.Thispopulation,who,bytraditional meansofcreditassessment,wouldhaveremainedonthe edgesofaccessingprimecredit,nowhasafightingchance ofsecuringahomeloanjustasmuchasthosewithdeep conventionalcredithistories.Thisiswhatwecall purposefulinnovation.WedothatalotatFinLocker.We analyzeconsumer-permissionedfinancialdataandestablish sustainablepathstowardhomeownership.Weemploy artificialintelligencetoanalyzetheconsumer'sconsented financialdatatoseeifwecanhelpthembetterunderstand theirspendinghabitsandprojectcash-flowvolatilitytoget amoreaccuratepictureoftheirownfinancesbeforetaking ondebt.

Whiledataandanalyticsfueledbyopenbankingsetthe tabletoanalyzeaconsumer'sfinances,generativeAIcan furtherlowerthebarofengagement.GenerativeAIisthe abilityofthemachinetosynthesizeandcreatenovel content,notjustregurgitatepre-fabnumbersand information.ChatGPTisatrendingexample.

Whenappliedtofinancialservices,generativeAI(without theirhallucinations)canunderstandnotjustaconsumer's financialdatabutderivemotiveandintentions,contrastyou

withothersina'journeylikeyours'–andcreatethecertaintyandconfidence thatyouarenotaloneinyourpursuit.Does generationalincomecomeintoplayformy demographic,andisitacceptabletoaskaboutthat withamortgageprofessional,orwillIbedenied?Can Irent-sharemyfuturehomewithothermillennials,or willthelenderjudgemeasunabletoaffordtheproperty? Howdodownpaymentgrantswork?Alltheseare contextualquestions,quitepersonal,thatopen-bankingdrivenfinancialanalyticsmayormaynotshedlighton. UsingresponsibleandgenerativeAI,wecanopenthedoor fortheseconversationswithoutfearofjudgmentor rejectionandletourconsumersfullyexploretheirjourney.

Recallourobjective,sustainablehomeownership.Themore aconsumercanunderstand,exploreandown,thebetteritis forthem–andmostcertainly,thebetteritisforthehousing financeecosystem(15-18%ofourGDP!).Soforthose chartingacourseforpurposefulandprofitableinnovationin thisdigital-social-ChatGPTera,looknofurtherthanthis powerfulconvergenceofgenerativeAIandopen-banking technologies.

Prabhakar“PB”Bhogaraju,Executive Vice-President,HeadofStrategy& ProductDevelopmentwithFinLocker,has over20yearsofmortgagetechnologyand consultingexperience,withextensive experienceindesignthinkinganddigital businessstrategy,productdevelopment, andcustomerengagement.Priortojoining FinLockerin2021,PBheldexecutive leadershippositionsinproduct development,datamanagement,and digitalbusinessarchitectureatFannieMae fortenyears.

Understanding the Fundamentals of Dynamic Financial Oracles

Thebusinessworldhasseenmanyupsanddowns, andtheloominguncertaintyisalwayswandering around.Asexpertsalwayssuggest,uninvested capitalkeptinreservesisalmostuseless.Ifthemoneydoes notworkforthecompany,itisofnouse.Profitandexcess cashaccumulatedbycompaniesmustbeputintheright placeattherighttimetomaximizereturnstobenefitthe company.Mostoftherichcorporationsintheworldgot theirwealthbyusingsimpleyetusefulstrategiesto multiplywealth.Investingmoneyisnorocketscience;if doneinasystematicandorganizedwaycanleadto exponentialgrowth.

Companieskeeptheirearlyearningsintheirbankforalong periodoftimewhichisthewrongthingtodo.Agood financialadvisortoacompanywillsuggestgoodoptions foranall-roundportfolio.Anidealportfolioincludesall