Global Analytics which uses big data for its web-based financial services has secured $30 million (INR 180 Cr.) in debt funding from Crystal Financial LLC, an independent commercial finance company in the US. The company so far has accumulated a total of $95 million from a number of angels and a few strategic advisors.
The company runs two distinctive services under its umbrella – Zebit and Lending Stream. The funds will help the company to fuel its global expansion.
Speaking on this occasion Stephen Krawchuk, Managing Director at Crystal Financial said “As a leader in providing capital to consumer finance companies, Crystal is excited to be a lending partner to support Zebit’s rapid growth trajectory. This is a management team with a proven track record, and their analytics-driven insights position them to positively impact markets across the globe.”
‘Lending stream’ offers an emergency loan for a period of 6 months with same day cash day approval and cash deployment. Where Lending stream works on idea of payday loan – under which borrower needs to pay back the installment on a fixed predefined day, Zebit offers flexible payment options. Under Zebit, one can borrow upto GBP 800 for a period of 1 week to a maximum of 7 months. It has completed over a million transactions on the platform.
Zebit uses big data technology for extensive decision making and risk assessment in providing loans to credit-underserved customers, leveraging on difficult to tap market with comparatively less risk and more profits for the companies. The platform with its millions of data points can grow further intelligent with time by collecting structured and unstructured data and effective help in fraud detection.
Zebit’s fraud detection model can reduce fraud by 90% as per the company and with its adaptive Data Fusion and deep learning technologies the model can preemptively responding to attacks before the fraud is committed. This is a great application of big data analysis in financial sector.
Talking of Indian market, the fact that government from time to time execute plans to provide banking services to highly underbanked area in India eg, in The Finance Ministry, by Sept 2012 asked all banks, to open branches in the underbanked districts of population more than 5,000.
Only about 35% of the 1.2 billion people in India have formal bank accounts, according to a World Bank survey in April, leaving 420 million people without any bank account – making India a considerably bigger market for such services. Also the changing lifestyle and urbanisation, such institutions in India could potentially pick up.