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Are you a student or a young professional eager to purchase your dream smartphone but lacking the financial resources? Finomena, a unique fintech platform, offers an innovative solution by providing easy access to credit for those without a credit score. Founded by Riddhi Mittal and Abhishek Garg, Finomena aims to bridge the gap between traditional banking and the unbanked population.
The Importance of Credit Scores
A credit score is a three-digit numeric summary of an individual’s credit history, ranging from 300 to 900. Banks and financial institutions rely on this figure to determine creditworthiness, with 79% of loan approvals going to those with a score over 750. However, the young unbanked population often faces a setback as they may not have a credit score at all, resulting in a vicious cycle.
Finomena’s Unique Approach
Finomena’s system of verification and loan approval stands out from traditional banking methods. The platform uses big data and machine learning-based risk and credit scoring systems to assess creditworthiness, taking into account over 20,000 data points. This unique approach allows Finomena to cater to those who do not have traditional income proof or a credit score, a section largely left out by banks and credit card issuers.
Shashank Singh, a lawyer at the Delhi High Court, experienced firsthand the difficulties of securing a loan from traditional lenders. Despite his income fluctuations, Finomena approved his loan within a day after a one-on-one conversation and document pick-up from his home.
Flexible Monthly Installments (FMIs)
Finomena introduces FMIs or Flexible Monthly Installments, offering customers the freedom to choose their down-payment amount and monthly payments. This flexibility addresses the inconvenience of hidden clauses and the requirements of in-store EMI programs, which often necessitate credit card ownership.
For instance, Viren Makwana, an IT student with a part-time job, appreciated the choice of setting his monthly payment at Rs 2,000 over a 12-month period for a laptop purchase. Finomena’s FMIs empower customers like Viren, who previously found online EMIs unbelievable, to confidently embrace the platform’s convenient and flexible loan options.
In conclusion, Finomena’s unique system of verification, loan approval, and flexible monthly installments offers an inclusive and accessible solution for the unbanked population. By catering to those without credit scores or traditional income proof, Finomena fosters financial inclusion, addressing the need for accessible credit in society.
