Nucleus Software has come together with Cholamandalam Investment and Finance Company Limited (Chola) for a new venture of lending and transaction banking solutions.
The new co-lending business will let the firm partner with different banks to target construction equipment finance and other higher value loan segments.
The co-lending solution would make the process of co-lending applications quicker, assess credit risk through a new and efficient framework and ensure smooth regulatory requirements.
Chola chose Nucleus Software due to its expertise in banking domain technology from over three decades that successful tracks record to deliver for complex projects and focus on innovation.
As per Ravindra Kundu, executive director of Cholamandalam Investment and Finance Company Limited, co-lending is a new direction for Chola and it is confident that the company will evolve more prolific partnership model. Nucleus Software is Chola’s technology partner and its expertise in a particular domain can ensure smooth co-lending business.
On the other hand, Anurag Bhatia, Nucleus Software Global head, core business said that Chola has a great hold and position in the industry as it always puts customers first and has a commendable value system.
Recently, Chola’s shares have surged by 12 per cent to Rs 280 after the company posted better-than-expected results for the quarter 2 in financial year 20-21.
This model could be seen as a great opportunity for banks and NBFCs to utilize each other’s strengths. This will reduce the cost of capital for Chola and help the partner banks for widening their reach to potential customers, business areas and locations where Chola holds a strong position.