New-Age lending model helping banks to cut costs and meet customer expectations
With conversations from banks and lenders, it's clear: Legacy Loan Origination Systems are no longer adequate. They were built to standardize, not to innovate. They offer control—but make it hard to adopt changes. Today, with tech-savvy customers and constantly changing rules, this lack of flexibility has become a drawback.
According to a market research,
digital lending
platforms in India are projected to reach over 500 million customers by the end of 2025, with the lending segment expected to hit USD 1.3 trillion in disbursements, driven by advancements in
financial technology
and increased smartphone penetration.
Hence, what is needed is not just digital enhancement, but a fundamental reinvention of how lending is delivered, scaled, and evolved. This is where the model of
Lending-as-a-Service
is proving to be a game-changer.
Lending-as-a-Service redefines lending not as a static software platform, but as a flexible, cloud-powered ecosystem. It enables lenders to break down the lending process into modular services that can be rapidly configured, deployed, and scaled across various product lines—from personal and auto loans to corporate, housing, and consumer durable finance. By adopting this model, financial institutions are no longer bound by one-size-fits-all workflows or long development cycles. They gain the agility to experiment, personalize, and adapt without overhauling their core architecture.
But technology alone is not the differentiator—it's the outcomes that matter. Institutions supported with platforms with Lending-as-a-Service architecture have consistently accelerated their go-to-market timelines, dramatically improved customer satisfaction, and reduced operational costs. We've seen banks launch new retail lending products in a matter of days. We've seen journeys that once required manual underwriting transformed into straight-through processes powered by AI. In several deployments, the cost per loan has reduced by over half, while conversion rates have increased multifold.
For instance, a leading financial services provider in India leveraged our platform to launch a digitally native loan journey for Indian customers, covering onboarding, KYC, credit scoring, and disbursal—all within a few days. Another bank in Southeast Asia reimagined its auto finance journey by integrating real-time approvals, e-KYC, and government API linkages into a seamless customer flow. These institutions weren't just digitizing—they were building lending businesses designed for today's customers and tomorrow's challenges.
This transformation is also enabling compliance readiness at scale. In regulated markets such as the UAE, India, and Southeast Asia, stakeholders are able to quickly embed policy changes, update product terms, or roll out pre-approved offers—without recoding, retraining, or retesting legacy systems.
Thus, the future of lending will belong to those who are agile, responsive, and deeply aligned with the needs of their borrowers. Lending-as-a-Service offers a pathway to that future—a model that is not only more adaptive but also more resilient in the face of change.
At the core of this shift is a new generation of lending platforms — modern, unified lending infrastructure built for speed, scalability, and intelligence. To illustrate, our platform, built on a microservices-based, cloud-native foundation, enables institutions to launch and iterate with confidence. With the ability to integrate more than 175 APIs, our ecosystem supports real-time connectivity with internal banking systems, fintech partners, government APIs, credit bureaus, fraud detection engines, and compliance tools.
Additionally, this allows banks and financial institutions to no longer be constrained by what their systems can support—they are empowered to lead with what their customers demand. The transformation is not incremental. It is structural. And it is happening now. It's time to reimagine lending and reinvent success.
By Ravish Pandey, Head of Product Innovation, and Sachin Gupta, Head of Client Accounts and Engagement at BUSINESSNEXT
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