Speaking to TechGraph, BASIC Home Loan’s CEO and co-founder Atul Monga outlined the company’s personalized strategies in helping customers navigate fluctuating home loan rates and market conditions and make well-informed decisions aligned with current mortgage market dynamics.
Read the complete interview:
TechGraph: Can you provide an overview of how BASIC Home Loan is changing the landscape of the home loan sector? What sets your company apart from traditional mortgage providers?
Atul Monga: We are revolutionizing the home loan sector through its cutting-edge approach, emphasizing a seamless and customer-centric process. The loan application occurs online, embracing a paperless route for efficiency, culminating in swift lender approval. Our unique Phygital strategy blends digital and physical elements, incorporating an in-house matchmaking engine and automated compliance processes.
Leveraging technology, we digitize India’s home loan value chain, optimizing operations, managing variable costs, and introducing innovative products for an enhanced customer experience. Our disruptive platform, as India’s leading online mortgage broker, pioneers the Neo-HFC concept, bridging market gaps by combining digital convenience with personalized offline support, delivering an unparalleled and holistic home loan experience.
TechGraph: The home loan sector has seen significant digitalization in recent years. How has BASIC Home Loan leveraged technology to streamline and enhance the home loan application and approval process?
Atul Monga: We have strategically harnessed technology to revolutionize the home loan sector. Through purpose-built solutions, we champion a “phygital” approach, seamlessly blending physical and digital elements to ensure housing for all.
Our Omnichannel CRM orchestrates paperless transactions, automating documentation and disbursement, fostering an efficient workflow. The Product Eligibility Matrix (PEM) serves as a dynamic customer-bank/product matchmaking engine, enhancing agent support and minimizing financial loss. The Dynamic Document Rule Engine expedites verification, reducing operational hassles and optimizing agent advice.
Additionally, our automated backend for agents accelerates customer KYC and document verification, streamlining internal workflows. By prioritizing innovation, BASIC Home Loan is not just simplifying processes but also driving sales efficiency, cost reduction, and overall customer satisfaction in the ever-evolving landscape of home loans.
TechGraph: One of the challenges in the home loan sector is often the complexity and opacity of terms and conditions. How does BASIC Home Loan simplify the home loan process for customers and make it more transparent?
Atul Monga: BASIC Home Loan is committed to simplifying and bringing transparency to the home loan process, addressing challenges related to complexity and opacity. Our on-ground representatives ensure customers receive comprehensive information about availing home loans, guiding them through the entire process. The standout feature is our complete paperless approach, drastically reducing processing time.
As India’s first platform automating home loans for middle and low-income households, our proprietary technology facilitates the selection of the best lenders, offering customers free, instant, and personalized quotes from top market players. The live tracking tool provides real-time updates on the home loan journey, notifying customers at every stage from login to sanction.
Additionally, we aid lenders in meeting RBI’s priority sector lending norms, and our doorstep support, powered by technology and a dedicated relationship manager, enhances the overall home loan processing experience. BASIC Home Loan ensures transparency, efficiency, and customer empowerment in the home loan sector through these initiatives.
TechGraph: With sustainability and responsible lending becoming increasingly important, what sustainability initiatives or responsible lending practices does BASIC Home Loan incorporate into its business model?
Atul Monga: BASIC Home Loan prioritizes sustainability through various initiatives. Firstly, our commitment to paperless transactions enhances efficiency and minimizes environmental impact. Embracing a digital platform eliminates the reliance on physical paperwork, streamlining applications and substantially reducing paper waste.
This approach aligns with our dedication to forest conservation and actively lessens the carbon footprint linked to paper production, printing, and disposal. At BASIC Home Loan, we recognize the importance of responsible lending and integrate eco-friendly practices to foster a sustainable future.
TechGraph: What role do data analytics and artificial intelligence play in the operations of BASIC Home Loan? How does it enhance the customer experience and lending decisions?
Atul Monga: We have strategically integrated data analytics into its operations, leveraging a comprehensive infrastructure hosted on the AWS Cloud. The front-end interface is seamlessly accessible through an Android app for agents and employees, along with angular progressive web apps for various stakeholders, including customers and in-house administrators. This multi-platform approach ensures a user-friendly experience and widespread accessibility.
The company’s commitment to a NO-OPS model underscores its dedication to automation and digitization in backend processes, contributing significantly to operational efficiency and, consequently, profitability. By automating key backend functions, BASIC Home Loan streamlines its operations, reducing manual interventions and minimizing errors.
Crucially, the cloud infrastructure deployed by us facilitates scalability, adhering to the growing demands of its customer base. Through horizontal scaling, the company ensures its products and services can readily expand to meet increasing demand, enhancing flexibility, reliability, and overall operational scalability. The integration of data analytics and AI not only optimizes internal processes but also plays a pivotal role in making informed lending decisions, ultimately enhancing the overall customer experience.
TechGraph: Home loan rates and market conditions can fluctuate. How does BASIC Home Loan help customers navigate these fluctuations and make informed decisions about their home loans?
Atul Monga: BASIC Home Loan assists customers in navigating fluctuating home loan rates and market conditions through various strategies. Firstly, our website is meticulously updated with the latest information from relevant banks, ensuring customers have access to current interest rates, loan terms, and any special offers. This centralized platform allows for easy comparison of the latest home loan products.
To empower customers to make informed decisions, we offer advanced in-house calculators. These tools enable users to assess potential costs and benefits under different market conditions, including monthly payments, total interest over the loan period, and side-by-side comparisons of various loan products.
Detailed product pages further educate customers on each home loan option, providing insights into features, benefits, and potential drawbacks. Testimonials, case studies, or scenarios illustrate how specific loans have performed in diverse market conditions.
Complementing these resources, our trained agents offer personalized assistance. Equipped with up-to-date information and a nuanced understanding of housing market complexities, they guide customers through the decision-making process, answering queries, and offering tailored recommendations based on individual needs and current market dynamics.
TechGraph: In a competitive home loan market, what strategies does BASIC Home Loan employ to attract and retain customers? How do you stay ahead of the competition?
Atul Monga: We employ several strategies to thrive in the competitive home loan market. With a presence in 30+ cities, the company strategically expands around existing hubs to efficiently reach underserved areas. Embracing a neo-housing finance model, we equip agents with a comprehensive app, transforming them into complete customer branches.
Customer service excellence is a priority, fostering a reputation for personalized service and swift responses to inquiries. Technology integration plays a pivotal role, simplifying processes through online applications and digital loan sanctions, enhancing overall customer experience and convenience.
Additionally, we explore partnerships with real estate agencies, builders, and developers to secure a consistent flow of referrals. Collaborations with other financial service providers create cross-selling opportunities, contributing to a competitive edge in the dynamic home loan landscape.
TechGraph: Regulations and compliance standards in the financial industry are evolving. How does BASIC Home Loan ensure it remains compliant with relevant regulations and maintains the trust of its customers?
Atul Monga: We ensure continuous compliance with evolving financial regulations to maintain customer trust. Operating through a network of 70+ partner banks, the company prioritizes stringent data privacy and security measures. Leveraging Aadhaar cards and DigiLocker for background checks aligns with recognized Indian government platforms, enhancing the reliability of customer information.
Governance practices focus on confidentiality, employing robust systems to prevent unauthorized access and breaches. The company adheres to industry best practices, safeguarding customer data throughout the loan process. Transparency and fair lending are paramount, as BASIC Home Loan provides clear and accurate information on terms, rates, and fees. This commitment to compliance, security, and transparency fosters a trustworthy lending environment for individuals seeking seamless and convenient home loans.