• MoneyTap, a digital consumer lending Bengaluru based Fintech startup,was founded by Kunal Varma,Bala Parthasarathy and Anuj Kacker who are IIT and ISB alumni.
• MoneyTap is India's first app-based personal line of credit for customers.
• It aims to deliver quick and flexible personal loans to individuals in partnership with banks -smoothly and efficiently.

Technology

• Moneytap uses automated underwriting process for personal loan approval.
• Automated underwriting is the process where advanced artificial intelligence (AI) technology electronically undertakes the decision making process for granting loans by analyzing one’s credit report.
• Through robotic process automation (RPA) and machine learning (ML) algorithms, the underwriting software takes clients’ information, analyzes it, and generates recommended conditions the client needs to meet in order to achieve a loan approval.
• The automated underwriting system streamlines the entire loan approval workflow from automating data extraction from different underwriting documents to matching the extracted data against third-party data from banks, creditors, lenders, and other financial institutions to give an analysis report.
• There are three types of automated underwriting software
• a)Propensity score modeling b) Loss ratio optimization c)Risk grading
• There are two types of underwriting software
• a)Pre-application software is designed to help lenders screen out people who are likely to be high-risk borrowers
• b)Post application credit underwriting takes place after a borrower has already applied for a loan or line of credit and has either been approved or denied.
• The software consists of two modules:-
• i) A loan pre-qualification engine that provides an early estimation of the borrower's creditworthiness
• ii) A secondary assessment tool used to verify information submitted by the borrower in their initial mortgage application.

Unique features regarding the tech

• Automated systems do not leave any room for human error or bias that may result in loan rejections.
• Pre-qualification is fast and efficient and helps borrowers understand their options before applying for financing.
• The system helps prevent loan fraud by screening out fraudulent applications before reaching expensive manual underwriting processing stages.