Retra Ventures: Simplifying and Democratizing Lending

CIO Vendor According to Niti Aayog, Fintech market in India is expected to reach USD 31 billion by end of this year. Digitization and the need for more robust financial solutions for growing customer demand are considered the major drivers of the growth of Fintech market. However, even with the government forces acting as the major catalyst, majority of population does not have the access to formal credit opportunity and these numbers are more than 190 million.

Retra, a fintech company was incorporated with the vision of enabling smooth lending, encompassing sustainable practices that can be availed by the majority of population despite their type of occupations and income level. The company has developed a complete suite of products to render user-friendly services through their platform. Retra offers fair, transparent and simplified ways of granting loans.

Delivering Credits Equally to Every Indian
“Retra’s mission is to be the first port of call for the lending solutions required by the digitally savvy yet undeserved and under-penetrated market. Retra loans are fair, transparent and simplified, and the core principles of the team hover around to make the above possible in every endeavour undertaken,” says Ramesh Panicker, Founder & CEO, Retra.

Retra offers a complete suite of products to digitally savvy population despite their type of employment or income. These products work upon transaction led, flow based lending, bank statements, GST returns data, digital wallet transaction, and card receivables etc as well as consuming alternate data to help access credit profiles of various sub-segments within the consumer and small enterprise population to offer short tenure loans
of up-to 2 years in small ticket sizes of nearly 10 lakh. Retra is one of the very few players in the industry who cater to both the segments, be it salaried or MSMEs, have invested in the underlying credit underwriting tools and technologies to offer lending solutions for the mass segment.

Retra has developed a plethora of tools that constitute automated underwriting like a bank statement analyzer or a GST transaction data pull and map it with Bank statements for any possible fraud. As most of the Fintech players are dependent on vendors for these auxiliary services, they incur a higher acquisition cost. The tools provided by Retra bring down this cost considerably

Retra’s mission is to be the first port of call for the lending solutions required by the digitally savvy yet undeserved and under-penetrated market.

The company’s proprietary acquisition tools combine traditional data like a bank statement and demographics with alternate data to arrive at a Risk Score. In addition, the applicant’s call history, SMS and contact details are used to come up with an affinity score (RFinity) which is combined with a proprietary psychometric scorecard (RMetry) to predict the intention to pay. All the information is cross validated in five different dimensions - Capacity, Identity, Stability, Intention and Propensity to calculate and ascribe a Fraud Score (RWatch). Retra Acquisition Score (RScore) is a function of all these scores.

Eventually, the end to end digital process ensures that the cost of acquisition is lower than that of competitors and more importantly, the process is designed to weed out bad selection.