Axis Finance has introduced its in-house 'Drishti' engine to speed up credit approvals for retail and MSME loans. By automating underwriting and integrating data analytics, the company aims to improve operational efficiency and decision-making consistency. This digital shift is part of a broader strategy to enhance portfolio quality while maintaining regulatory discipline in its lending operations.
Detailed Coverage
Axis Finance Limited, a subsidiary of Axis Bank, has officially launched its proprietary Business Rules Engine (BRE) known as 'Drishti.' This new platform is designed to automate and accelerate the credit-decisioning process for its retail and MSME loan portfolios. In the initial phase, the engine will cover personal loans, business loans, loans against property, and Disha home loans.
Scaling Operations Through Automation
The move towards an automated engine reflects a shift in how the non-banking finance company (NBFC) manages its lending lifecycle. By integrating underwriting workflows directly with statistical scorecards and real-time data analytics, the company aims to move away from manual processing toward 'straight-through processing.' For customers, this is designed to reduce the time taken for loan approvals. For the company, the goal is to create a more scalable framework that allows it to process a higher volume of applications without increasing operational costs proportionally.
Focus on Risk and Governance
Beyond speed, the platform is structured to ensure consistency in credit assessments. As a non-deposit-accepting NBFC regulated by the Reserve Bank of India, Axis Finance faces strict requirements regarding asset quality and risk management. According to the company, the Drishti engine incorporates automated policy checks, which help maintain adherence to internal lending norms and regulatory standards. This focus on objective, data-led assessments follows the company’s recent adoption of the 'ABC Scorecards' and AI-based collection monitoring, both of which are designed to standardize interactions and minimize human error in credit appraisal.
Strategic Context for NBFCs
In the Indian lending sector, many NBFCs are currently investing in digital infrastructure to improve their return on assets. By reducing the time and cost spent on loan processing, companies attempt to maintain healthy profit margins even in a competitive lending environment. As Axis Finance expands its digital footprint, investors typically monitor whether such technology investments lead to lower operating expenses and improved loan book quality over the long term. The effectiveness of this system will depend on its ability to accurately assess credit risk across diverse borrower profiles, particularly in the MSME segment, which can be more sensitive to economic fluctuations. The key monitorable for the company remains its ability to balance rapid, automated loan growth with consistent asset quality and stable net interest margins as it scales these new digital capabilities.