The problem FinActive solves

The problem we are trying to solve has two fronts;

The first front is that of the end-user trying to avail a Product/Service from any Financial Information User (a.k.a FIU). The Product/Service can be a Loan, Credit Card, or Insurance, etc.
The second front is that of the FIU itself, trying to verify that Product/Service from the user while managing to provide the best possible UX all along.

End-User

Currently, the users have to input a gazillion data points, upload various documents to avail a product/service from an FIU which is both cumbersome and time-consuming.
Taking loan application as an example, a report by TransUnion revealed that 7 out of 10 customers drop off during the loan application process.
That’s an astonishingly high number of drop-offs and that’s just for loan applications. Imagine the lost opportunities when we consider all the drop-offs across all the Product/Service applications.
What if this can be done super seamlessly like how we would do with FB, Google, or Apple Sign-in, like for practically everything today? Kind of an OAuth-like framework, but for the banking industry.

FIU

Currently, a lot of verification processes of these applications by the bank are manual, which is both costly and a major hindrance for end-to-end automation.
Taking loans as an example again, the report further reveals that almost 2/3rds of all loan applications take three or more days to get approved.
That’s an inordinate delay. Credit delayed can sometimes also mean credit denied.
With the AA framework as a backbone, this delay can now be avoided to a good extent, by directly fetching the data from the source FIU, and thereby eliminating the need for verification.

Challenges we ran into

1. Our initial ideation started with an aim to identify use cases where we can solve for trust.

2. A lot of the use cases that we’ve come up with involved sharing either the data or the insight with non-FIUs.

3. We‘ve reached out to the Hackathon team to clarify on how the directives are laid out by Sahamati/RBI in this regard. It seemed like this is still a grey area as the specific directives are yet to be given.

4. Though it felt restricting at the onset, we’ve fortunately ended up with an idea that solves the use cases for the FIUs. However, we’ve left the scope in the Product to accommodate non FIU use cases, for when the directives become available.