A year in a fintech start-up in India: lessons from a credit risk perspective

With the heating of India’s fintech space, it’s important to keep in mind these lessons learned. I completed 12 months at Creditexchange today. When I go to work, I do not feel abnormal when I think back to my last year and ask myself some more obvious questions. The fintech space of India being hotter than ever, especially since the beginning of 2015, it is certainly the right decision for me to engage in this space, but I ask myself the question every day . How to break the credit industry in India? A year at Fintech Start-up in India. To answer this question, I’ll have to go further by the end of 2012. That’s when I started. Bainary, a data analytics product for the financial services industry. This is the first time I have started having dirty hands as a businessman. Although I have not been able to launch it and learn about the industry for nine months, here’s what I learned during this month: < strong> The product is important, as is the weather. You can never compromise on a good product, but you have to make sure the time is right. If you wait a little too long to get the best product, you may have missed the bus. Get your first ASAP client . There are no good products unless you have 10 people who authenticate your thoughts. Get these top 10 clients to use and sit with them for feedback. This is most important for any startup activity, in any industry. Know your strengths and your passion for passion. I’ve always been a risky person, and deep down I’ll always be – that’s my passion. Any deviation from that would kill my company. I have to focus on something that matches my passion. With a little gray hair, I joined one of the Fintech start-ups, LoanCircle, in mid-2015. The best initial investment, it seems to be the most obvious choice for me to return to the fintech space. Risk Heading for LoanCircle is like a dream. But this trip was short – only eight months and, fortunately, Creditexchange was coming. When I look back, I believe that eight months have taught me the most about Indian market and Indian fintech space and help me avoid the same mistakes at Creditexchange. Being the oldest member and the first member of the group was not an easy decision, with higher risks than ever before. But I believe in the business model and the founder (and I’ll tell you why another day). Now, here’s what I learned at Creditexchange that helped us build something I really trust: At home, understand the economy of unity. Risks and finances are two different things. This was the first thing I learned when I came here. A fintech starter, especially one of the lenders, needs to understand his cash flow, his unit of weight on day 1. This is something I have never discussed before. Today, at Creditexchange, we have one of the most detailed and successful financial models I’ve gone through and with two months of launch, which makes me more confident in the model, is the fact that cost, income and growth are also consistent with what we included in the model. The credit risk has an impact not only on the losses but also on the overall cost – Guarantee (the number of customers that I accept for 100 applications), Acquisitions ( number of clients receiving 100 applications) and Opex (the number of clients we are talking about should not be). Good teams work well . Hiring at Creditexchange is always motivated by one thing – the passion of building your own business, even if it requires a person to bear the excessive amount of risk on a personal and professional level. Today, we are proud of the most experienced people working together to build something they understand at a minimum. Start-ups in India say that the average age is 25 or 28 in their business. Yes, here at Creditexchange, I’m proud to say we have a core team With the heating of India’s fintech space, it’s important to keep in mind these lessons learned. I completed 12 months at Creditexchange today. When I go to work, I do not feel abnormal when I think back to my last year and ask myself some more obvious questions. The fintech space of India being hotter than ever, especially since the beginning of 2015, it is certainly the right decision for me to engage in this space, but I ask myself the question every day . How to break the credit industry in India? A year at Fintech Start-up in India. To answer this question, I’ll have to go further by the end of 2012. That’s when I started. Bainary, a data analytics product for the financial services industry. This is the first time I have started having dirty hands as a businessman. Although I have not been able to launch it and learn about the industry for nine months, here’s what I learned during this month: < strong> The product is important, as is the weather. You can never compromise on a good product, but you have to make sure the time is right. If you wait a little too long to get the best product, you may have missed the bus. Get your first ASAP client . There are no good products unless you have 10 people who authenticate your thoughts. Get these top 10 clients to use and sit with them for feedback. This is most important for any startup activity, in any industry. Know your strengths and your passion for passion. I’ve always been a risky person, and deep down I’ll always be – that’s my passion. Any deviation from that would kill my company. I have to focus on something that matches my passion. With a little gray hair, I joined one of the Fintech start-ups, LoanCircle, in mid-2015. The best initial investment, it seems to be the most obvious choice for me to return to the fintech space. Risk Heading for LoanCircle is like a dream. But this trip was short – only eight months and, fortunately, Creditexchange was coming. When I look back, I believe that eight months have taught me the most about Indian market and Indian fintech space and help me avoid the same mistakes at Creditexchange. Being the oldest member and the first member of the group was not an easy decision, with higher risks than ever before. But I believe in the business model and the founder (and I’ll tell you why another day). Now, here’s what I learned at Creditexchange that helped us build something I really trust: At home, understand the economy of unity. Risks and finances are two different things. This was the first thing I learned when I came here. A fintech starter, especially one of the lenders, needs to understand his cash flow, his unit of weight on day 1. This is something I have never discussed before. Today, at Creditexchange, we have one of the most detailed and successful financial models I’ve gone through and with two months of launch, which makes me more confident in the model, is the fact that cost, income and growth are also consistent with what we included in the model. The credit risk has an impact not only on the losses but also on the overall cost – Guarantee (the number of customers that I accept for 100 applications), Acquisitions ( number of clients receiving 100 applications) and Opex (the number of clients we are talking about should not be). Good teams work well . Hiring at Creditexchange is always motivated by one thing – the passion of building your own business, even if it requires a person to bear the excessive amount of risk on a personal and professional level. Today, we are proud of the most experienced people working together to build something they understand at a minimum. Start-ups in India say that the average age is 25 or 28 in their business. Yes, here at Creditexchange, I’m proud to say we have a core team Have an average of 12 years of experience – through product, technology, risk, operations, marketing and sales. Fintech is less technologically advanced and more detailed. Compared to any other industry, FinTech works very differently. This is not a space where growth, even when it comes to big losses, will work. I can not stress that credit risk and profitability are very important to setting up a Fintech company. Considering the most successful financial technology companies in the United States, none of them has compromised the quality of its development portfolio. Flexible partnership. Nowadays, most Fintech companies are getting closer to banks for cooperation (because they all need capital to grow their businesses and make sure their models are genuine), and not one. of them is ready to share his risk model. At Creditexchange, I took the initiative to take a different approach. We went to a big Indian bank and opened all our guarantee in front of them. The result is extraordinary. We have engaged a partnership of more than Rs 100 with a relatively insignificant risk-free arrangement in the consumer lending sector in India. No automatic learning on day 1 . Many are starting to discuss Big Data and Machine Learning algorithms from the start. I do not believe that. The first break in your warranty should be very simple and intuitive. This is how big companies like American Express and Capital One started. If there is not enough data, the machine will not learn, instead of sending inaccurate results and inaccurate statistics (I can provide enough examples of exposure, use and balance to prove it). You do not need 1000 data points to predict risk. When many people start discussing 1000 data points in their risk models, I’m proud to say that we have limited risk in our underwriting framework. The number of data points is lower and will continue to do so. The key for us is to analyze and understand what helps predict risk and not just throw things into the laundry bag. Share your risk model with everyone: I think it’s very important to get certified by first reducing the risk model. Learn faster At Creditexchange, we shared our risks and guarantees with industry experts to do just that. In the next 12 months, our risk models will be very different from what they are. To make sure that we learn the most, it is important that the starting point is correct. This can be better recognized if it is shared with lenders, investors and partners. There is a lot of learning to come. But I believe we are on the right track and the Indian Fintech space is witnessing some good ideas. What should be considered is which of these teams can pull through the appropriate implementation. ( .

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