AdvaRisk, a fintech backed by ICICI Bank and NABARD, has embarked on a mission to empower financial institutions with end-to-end collateral management using its GenAI-powered data intelligence platform.

With a proven track record of serving over 50 financial institutions, AdvaRisk has been instrumental in digitising the discovery, onboarding, legal due diligence and monitoring of real estate collaterals across credit portfolios.

Vishal Sharma, Co-founder and CEO, AdvaRisk, said the company understands the challenges faced by banks, especially smaller and regional ones, in building the infrastructure needed for every new Reserve Bank of India (RBI) directive.

The company’s vision is to simplify the process, particularly in the area of collateral management, he added.

AdvaRisk assists banks in accurately verifying property titles, identifying potential encumbrances, and improving the precision of property data management by aligning it with property’s revenue and transaction records.

The service enables bankers to make informed decisions, mitigating risks associated with collateral-backed loans.

Innovative solutions

In addition to compliance challenges, banks face risks in various forms, such as procedural errors caused by human negligence and cybersecurity vulnerabilities stemming from technological gaps. The company addresses these issues by bridging these gaps with innovative solutions.

The government and the RBI have urged bankers to strengthen safety and security measures at every level.

The adoption of advanced technology has become a game-changer for bankers, significantly reducing instances of fraud and procedural risks, said Sharma.

Processes like automated red flagging of lender accounts and legal audits are increasingly being handled with the help of AI, making lending safer and more efficient, he added.

Of particular importance to bankers are solutions for onboarding and real-time monitoring. The RBI has also mandated real-time account monitoring for lenders.

The integration of machine learning and AI has revolutionised lending processes. The software flags discrepancies at an early stage, significantly reducing risk.

Real-time monitoring is crucial given that the government recently reported gross NPAs of public sector banks stood at ₹3.16 lakh crore as of last September, representing three per cent of outstanding loans.