Included automated bank statement analysis in their onboarding process.
Improved their Net Promoter Score by 70%
Improved their Play Store rating from 3.6 to 4.4
Lowered their risk assessment Turn Around Time to 5 minutes for 83% of cases.
The renting business is much like lending. In place of cash, it is furniture or goods that are being lent. Therefore, many underlying elements of both businesses are similar, namely underwriting and risk assessment. Here is an interesting story about how renting giant RentoMojo included bank statement analysis by leveraging FinBox BankConnect in their underwriting process.
Over the last few years, renting has gained a prominent place in the Indian consumership. The furniture rental market in India alone is expected to reach more than $20 Bn by 2024 with tier 2 and 3 cities rising as potential markets.
Rentomojo is India’s leading rental platform that rents out furniture, appliances, electronics, and more. Today, RentoMojo serves more than 100,000 live orders in a month in cities like Mumbai, Delhi, Pune and Bengaluru. RentoMojo attracts an entire generation of young professionals to their platform who do not want the baggage of ownership.
Furniture rental space in India is still new and Rentomojo is constantly innovating trends and setting new standards. Here is an interesting story of how RentoMojo upgraded their product offering by leveraging FinBox BankConnect.
Renting is a tricky business. It faces the challenge of identifying rent-worthy customers. There is always a risk of defaulted payments or products not being returned/damaged. This is where risk assessment and underwriting comes into play.
Risk assessment and underwriting helps businesses verify creditworthy customers and lend them money. In the case of RentoMojo, lend furniture and appliances.
Rentomojo’s initial risk assessment process involved the customer going through a time-consuming process of sharing multiple documents. The RentoMojo team would then manually process these documents and approve or reject a customer. The whole process would take 48+ hours.
Due to the lack of a comprehensive risk assessment process, RentoMojo was unable to analyse if a customer was rent-worthy. The assessment process is generally known to be manual, error-prone & time-consuming. Customers complained that the journey was not seamless and friendly. This subjected RentoMojo to a 20% drop-off during the onboarding phase. The manual processing of documents also caused errors and many man hours were used up to process documents. This caused an increase in their operational costs.
In a nutshell, rentomojo risked the following loss to business -
Loss of potential customers - Not being able to assess their consumers quickly led to loss of potential customers or rejecting worthy customers
High Operational Cost - Manual processing of bank statements caused human errors and rejecting worthy customers.
It was clear to the RentoMojo team that automating the entire risk assessment process would benefit its customers, as well as the company itself. The problem with drop-offs, operational costs, and human errors, could be solved in one go.
FinBox BankConnect enabled users to share their statements with RentoMojo through netbanking or PDF Upload and let RentoMojo analyse bank statements
While Rentomojo considered many options to find the best suited solution to their problem, they ultimately chose FinBox BankConnect. Here’s why.
FinBox BankConnect works on multiple platforms (Android, web-app, iOS) and is easily customisable.
With FinBox’s advanced risk intelligence suite, RentoMojo was able to identify rentworthy customers, detect fraudulent applications, and control timely payments and reduce the damage to their furniture.
FinBox BankConnect was significantly more economical and delivered a high ROI than other players in the market.
As a result of integrating FinBox BankConnect, Rentomojo observed:
Rentomojo successfully improved its NPS by 70%, which led to its Playstore rating increasing to 4.4 from the previous 3.6. The company saw a 50% reduction in the number of queries since the whole risk assessment process was automated.
Since RentoMojo was no longer manually processing bank statements, RentoMojo provided its customers with a superior user experience. A single bank statement via Netbanking login or PDF upload was all it took, ensuring the process completion in minutes. The lower risk assessment TAT resulted in about 83% of the rental orders to be processed in less than 5 minutes. This also reduced their cancellation rate.
By integrating FinBox BankConnect, RentoMojo minimized their operational costs by a large margin, and reduced human error by switching to a low friction automated risk assessment program.