Novopay core banking solution to go global

Novopay, a technology and payment services company, has revealed that its mobile core banking solution (CBS) is generating interest from overseas banks, especially from Europe.

In an interaction with DH, Novopay Solutions Co-founder and Chairman Srikanth Nadhamuni said that the company’s goal was to build a mobile and cloud-based CBS platform ground up to be able to deliver banking to a billion people. “We have exactly succeeded in that with our proven technology. The architecture allows the Mobile CBS to scale horizontally and provide APIs for B2B banking and financial services. This lightweight platform significantly lowers the cost of payments and banking,” he said.

Nadhamuni said that a leading bank from Europe has evinced interest in the Novopay solution, to be deployed in Europe and Africa.

He pointed out that India is at a transformative stage in banking and payment service maturity, with innovative fintech, a progressive RBI, and scalable IndiaStack protocol powering a robust growth platform. The rest of the world is taking notice of these innovative solutions coming from India.

Novopay provides a Retailer Android app used at a kirana store powered by Aadhaar authentication and eKYC to provide banking, remittance, bill payment and recharge services.

Khosla Labs, the incubator that launched Novopay, is also launching LoansApp, a startup focused on digital lending, based on machine-learning techniques. “We have created a fantastic team of data scientists who have built a credit-rating model based on digital data, as opposed to traditional lending models that need collateral and lot of manual processes,” he said.

“LoansApp’s credit rating engine uses customer data from partners (ecommerce, banks, telecoms, etc) as well as social media and past financial behaviour to accurately credit rate customers. This approach will take a more inclusive approach and offer loans to individuals and SMEs who perhaps wouldn’t have qualified for a loan in the traditional collateral-based lending models.” he said. Nadhamuni added that not everyone in India is born with the luxury of property (collateral), but might yet be credit-worthy due to their hard work and perseverance. “Machine-learning algorithms can figure this out better by using digital exhaust from various sources than traditional methods can,” he said.

He pointed out that machine-learning is a transformative technology that uses the computer’s ability to recognise patterns in large datasets that has the potential to not only improve credit rating, but also in other areas such as crop insurance, reducing fraudulent transactions, and more accurately, predicting customer behaviour.