EarlySalary boasts of the largest consumer lending application for salaried individuals. The app while working with an instant decision-making system allows borrowing in minutes. It helps salaried people with an easy line of credit, instant cash loans, and salary advances. It provides different loan categories like shopping, travel, medical emergencies, or education.
We talked with Mr. Akshay Mehrotra, Co-Founder, and CEO, EarlySalary. Let’s take a look.
Q) Why was EarlySalary incepted? How was the overall experience so far?
Democratizing credit was the motto we started with EarlySalary; it was the first time 5 years back an instant Salary Advance product was introduced in India and a new way for the young working professional who could borrow on a mobile app. We followed three core principles that hold true even today; ability to borrow without justifying why, ability to payback anytime and only pay for the amount and days borrowed for, and true format digital automated journey. Today we have matured to offer a holistic product offering under the credit suite umbrella from Salary Advances to instant personal loans, to buy-now-pay-later to the digital card for payments. We have disbursed nearly half a billion (Rs.3400Cr) worth of loans and disbursed over a 1.6million loans and become a preferred lending product to every young working Indian; we not only have built the highest-rated lending apps in the country but also got acceptance from nearly 700+ partner corporates to introduce financial wellness to employees across the country and now working with merchant across categories to build zero cost EMI offers to customer bases.
Q) How is your work module? What is the procedure that you follow while giving credits?
For a modern-day successful business, it needs to make the customer experience very simple, intuitive, and ahead of others for consumers to love it. FinTech Lending adds another two-layer to this, the first is hyper use of ML and Risk Scorecards to understand consumer ability and willingness to payback and making sure the product while being extremely simple is able to manage credit risk very well and the second is to build repeat traction with a customer, while traditional banking looks 2-3 times product level engagement we are currently trending at 10+ which means an average consumer is combing back multiple times, engaging with us for next products and prefers to stay with us, recommend us to friends, family, and employer and we are able to grow with him as he grows in his financial capabilities. We look to service a customer for a long window; as he starts as a first jobber we help him get a credit to pay for his house deposit, we help him buy his smartphone or white good, we help him take of financial needs to his family, medical emergencies, skill up-gradation, card payment and as his financial capabilities keep going up we keep adding products to our suite to remain relevant to him. Fundamentally speaking we have an instant credit product for every need starting from 21years on your first day to work, to make sure you can update your skills to do better in your professional life.
Q) Is there any kind of mandatory or basic qualification/ salary that one needs to follow before applying for credit and instant cash loans?
EarlySalary customer onboarding process is very simple, just sign-up with basic credentials, verify bank account credentials and KYC including a selfie to get started; but at the back, we are doing many things to make sure we can cater to a very broad spectrum consumer base. A Grey Collar employee of a delivery company is able to borrow because his employer systems are connected, account aggregator integrations help validate customers’ bank accounts and statements, VKYC systems help customers onboard using Aadhar authentication, and run-time fraud systems help to eliminate fraudsters. The seamless interface today helps do nearly 70000+ loans each month and handles more than 100k monthly customer credit decisions in a fully automated way allowing consumers to borrow 24×7 in real-time.
Q) I learn you are a fully digitalized option for credit lending to salaried people. So, how do you build trust among them?
Trust is not built its earned; we are very consumer-centric organizations we need to make sure we always there to help, keep continuously improving our product and platform to give better customer interaction, our consumer services are helpful and understand how to help and at the same time we try and best to offer financial services products to masses in a more efficient way than traditional banks and FIs and help reduce the credit cost burden. We have seen nearly a very large portion of our consumers improve their credit scores and can move to banks but 10+ engagement trends clearly indicate that we are able to offer better products, much superior interaction and resulting in customers not only stay but keep taking on an average 5 times larger amounts overtime for us. The largest success has been customers’ recommendations and referrals and thanks to them for our success.
Q) How you expand your reach? Do you perform some activity to educate people about cash and credit lending?
We are doing three things to expand our reach: first is instant credit and personal loan products for every segment in the salaried customer profile, for a 2-year instant personal loan to a person earning 1L a month at a tech company to 23 years needs instant salary advance for 3 months. The second is investing in deeper partnerships with corporates and employers so we can have better credit decision capability and build credit as a seamless HR offering and thirdly investing in build buy now pay later to help our consumer aspire more and build affordability for them. Affordability not only allows people to buy new white goods but also allows them to do a skill up-gradation course which allows them to earn more.
Q) What are your future plans?
We want to build a larger organization; want to stand tall in the mind and heart of every customer with a product for every credit need, we are a profitable start-up and want to build a large financial model. Our current growth focus is based on three pillars: have all products to help us grow with the customer from cash to credit to cards, increase our customer acquisition by 5x, and build doubling of our size every six months. We want to make sure EarlySalary is a loved brand, a product offering that everyone can access.