While technology has made credit disbursal in India an increasingly frictionless process, the collection side of the business is still mired in the dark ages. Intimidation, threats, and persistent follow-ups are rampant, leading to distraught and often uncooperative customers. 

Lenders, too, bear a heavy cost. According to industry estimates, the physical collection process can account for as much as 60% of the equal monthly instalments (EMIs) owed by borrowers. As a result, lenders often choose to cut their losses on overdue small-ticket loans rather than spending to recoup them.

For Spocto, this archaic system presents an opportunity. It enables lenders like banks and non-banking financial companies to assess the risk profiles of their customers and optimise collections. As Spocto co-founder and CEO Sumeet Srivastava puts it, the easiest way for a lender to lose a customer is to pass the account on to its collection department.