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Global Analytics, a US-based financial technology company delivering online financial products in the UK, wants to be an alternative money lender in India by providing short-term credit to customers.
In India, it will lend largely to those who don’t get loans from banks. They can use the money for medical emergencies, paying rental deposits, and so on. It hopes to be an active lender by end of this year or early next, said Mukund Venkatesh, Vice-President and General Manager, India Operations, Global Analytics.
The company started a beta site Moneyhaat.com to test how people search for credit online. It is exploring tie-ups with NBFCs and banks. The Indian market is different with many local lenders providing short-term credit without licences. Credit is also highly under-penetrated, he told BusinessLine .
Founded by professionals from the credit-risk scoring, fraud detection and predictive analytics domains, the company gradually moved to lending. It currently employs over 400 people, including 250 in Chennai. It has so far raised around $100 million through Mohr Davidow Ventures, Crosslink Capital, Leapfrog Ventures and QED Ventures.
UK business In the UK, it offers short-term credit to customers who do not have access to mainstream credit. The amount could be $200 to $2,000 for six months. At any point in time it serves 100,000 to 150,000 active customers in the UK.
Recently, $10 million was raised into Zebit, a separate company spun-out from Global Analytics, focussing on the UK credit market and looking at an India entry, he said.
The company’s India operations consist of data scientists, software engineers and product developers providing support for its UK operations. Data is critical for the company’s business with Credit Information Bureau, which has a strong association with banks, being the only major source for credit score.
In the UK, there are multiple bureaus for verification, he said. “Our strength is the strong analytics platform built over the years that will ensure the default rate is low,” he said. “We are talking to salaried individuals to understand their needs and the right product for them. What are the things they are getting and not getting from the bank? We are tailoring and customising the platform for India. We are making sure that regulatory compliance is in place,” he said.
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