IIFL Home Finance empowers customers with several digital initiatives: Rachit Gehani

In an insightful interview with Express Computer Rachit Gehani, CTO, IIFL Home Finance, discusses how the company is empowering digital transformation to facilitate homeownership for greater numbers of people, especially first-time homebuyers in Tier 2, 3, and 4 cities. AI-based digital KYC, mobile-first architecture, and cloud-first design, are one of most important innovations which have also improved operational efficiency as well as customer experience. He stresses on the strategic use of artificial intelligence and generative AI across loan processing, customer support, and communications, including GenAI-enabled chatbots and multilingual AI-generated videos. He discusses how automation, cybersecurity, and inclusive offerings such as vernacular AI and intelligent underwriting models. Going forward, their vision of AI-driven underwriting, agentic automation, and next gen conversational AI, will place the company at the forefront of digital lending innovation.

Click here to read on Express Computer official website.

IIFL Home Finance has been at the forefront of technology adoption in the housing finance sector. Would you like to mention some of the key milestones in your journey towards going digital and how they have improved operational efficiency and customer experience?

Our revolution is not technological change but is right at the core of our mission to make homeownership possible, accessible, and convenient. Through the power of AI, data analytics, and cloud technology, we have redefined the customer experience in housing finance and optimised operating efficiency in the value chain. We embarked on our digital journey with a strong mobile-first commitment, enabling our customers and field forces with smart, mobile-connected solutions. From loan application to onboarding, servicing, or support, our mobile apps provide real-time updates, low processing time, and location-independent experiences. This has enabled us to bridge the urban–rural divide and actually democratise home financing. We also introduced AI-based digital KYC processes, including facial recognition, liveliness checks, and OCR-based document checks, along with e-signatures. This enabled real-time authentication and faster processing, providing a much enhanced onboarding experience to clients. Our shift to cloud-first architecture has strengthened our digital infrastructure with improved scalability, agility, and security which also optimised infrastructure management, reduced costs, and allowed for business continuity, making it possible for us to quickly adapt to changing customer needs. In addition, we have infused AI in all customer touchpoints through the introduction of Generative AI (GenAI) chatbots. These bots provide 24/7 multilingual support for both servicing and collections, offering personalised assistance on documentation, queries, and payments, while improving recovery efficiency and freeing up human agents to address complex cases. To enhance customer engagement further, we utilise predictive analytics for hyper-personalisation. By analysing behaviour, transaction patterns, and preferences, we deliver tailored recommendations, timely nudges, and flexible support, fostering greater trust, satisfaction, and loyalty.

How is IIFL Home Finance leveraging AI and generative AI to improve loan processing, risk assessment, and customer service? Can you share any specific use cases or implementations that have delivered measurable impact?

We are proactively leveraging AI, and specifically generative AI, to revolutionise our foundational elements like loan processing, risk management, and customer service. These smart technologies have resulted in tangible gains in terms of efficiency and customer satisfaction. One notable innovation has been the application of personalised GenAI videos, designed to assist consumers with better comprehension of legal notices. With a virtual legal aide, such videos clarify complex legal jargon, outline pivotal information, and walk consumers through what's next—fostering clarity and confidence in high-stakes interactions. Our chatbots and voice bots, powered by AI, have taken the place of conventional IVRs, providing real-time conversational support for loan inquiries, collections, and payment reminders. We also use OCR and NLP to automate document processing, greatly accelerating documentation processes and reducing human errors. In collections, we have implemented a GenAI-enabled chatbot with multilingual support on WhatsApp, providing personalised nudges and assistance in various regional languages. This inclusive approach has enhanced engagement, reduced delinquencies, and improved repayment efficiency across diverse customer segments. To safeguard against fraud and improve credit risk assessment, we rely on AI/ML models to detect anomalies and evaluate transaction behaviour. We've also developed an AI-powered scorecard to assist in underwriting decisions which enables quicker and more accurate loan approvals. Moreover, we are working on a sentiment analysis system to assess customer interactions across platforms. This system will uncover hidden pain points and enable us to enhance services and provide more empathetic support based on real-time customer sentiment.

What are some of the recent technology initiatives undertaken by IIFL Home Finance? How are they driving automation, security, and scalability in your operations?

We continue to prioritise strategic technology initiatives that enhance automation, security, and scalability. One such initiative is AI-driven code optimisation, where AI assistants help our engineers improve code quality and security, accelerate development, and streamline deployments ensuring a resilient and agile tech environment. To enhance cybersecurity, we have invested in a Zero Trust Network Architecture (ZTNA), which removes the need for conventional VPN dependency and is based on identity authentication to manage access to essential systems. This protects data, minimizes cyber threats, and complies with changing regulatory requirements. We are also advancing our cloud-first approach by expanding cloud infrastructure to deliver greater scalability and operational continuity. Another innovation includes AI-powered smart document processing, which automates the extraction, validation, and auto-filling of loan application data which has reduced the processing time and manual intervention. We are also transforming Robotic Process Automation (RPA), with AI capabilities that automate underwriting, loan processing, and compliance, facilitating faster decisions and fraud detection at low manual touch. In collections, our GenAI-driven solutions remain at the forefront of change. Our WhatsApp chatbot provides personalised repayment reminders, while GenAI-created legal videos make compliance messaging easier. Additionally, AI voice bots ensure consistent and engaging customer experiences from welcome calls to collections. Lastly, we are modernising our tech stack with low-code/no-code platforms, allowing our business teams to rapidly prototype and deploy internal tools with minimal technical overhead; accelerating innovation and solution delivery.

Given that IIFL Home Finance serves first-time homebuyers in Tier 2, 3, and 4 cities, what role does digital technology play in making home loans more accessible and seamless for this segment?

Digital technology plays a pivotal role in making home loans more accessible and seamless, especially for first-time buyers in Tier 2, 3, and 4 cities, where banking infrastructure and credit awareness can be limited. We have adopted a hybrid model tailored to these cities, combining digital convenience with personalised, on-ground support. While our platform enables a paperless and user-friendly experience, our field teams ensure that customers; many of whom may be digitally inexperienced, can receive full assistance throughout their journey. Our GenAI-powered multilingual chatbots bridge language and literacy gaps by offering 24/7 support in regional languages, helping borrowers understand loan terms, eligibility, and repayment options, thereby promoting financial inclusion. To encourage timely repayments, we've built an intuitive digital payment ecosystem that supports UPI, bank transfers, and payments through WhatsApp. Customers receive real-time, vernacular payment reminders via SMS, WhatsApp, and voice calls, enhancing convenience and improving EMI collection efficiency. Our AI-driven document verification software has also substituted paper-intensive processes. These products authenticate and auto-complete customer information in real time, eliminating errors and streamlining approvals. Finally, AI-driven scorecard models facilitate more comprehensive underwriting. By assessing alternative data; rental history, digital payments, and behaviour, we can make lending decisions based on facts even for customers with sparse formal credit records. Combined, these innovations make the home loan process easier, quicker, and more accessible and customer-centric for India's underserved masses.

How does IIFL Home Finance, as a technology-based housing finance company, ensure data protection, regulatory compliance, and cybersecurity?

Data security and regulatory compliance are central to our operations. We have a multi-layered security model supported by state-of-the-art firewalls, real-time monitoring, and scheduled audits to actively safeguard customer information and avoid vulnerability. Our compliance with the regulations laid out by RBI and the National Housing Bank (NHB) enables us to have an aggressive compliance stance; enabling the quick uptake of regulatory adjustments while promoting innovation in secure and lawful avenues. One of the major security cybersecurity practices we have introduced is Zero Trust Network Architecture (ZTNA), with identity-based access control and VPN-free processes. With multi-factor authentication, threat intelligence in the cloud, and real-time data loss prevention, we provide strong protection for sensitive data. We also place a high value on transparency in data management. In the event of a potential vulnerability, we have a clearly established process of immediate evaluation, internal notification, and prompt remediation. This has served to enable us to retain high levels of customer confidence and consolidate our position as India's number one affordable housing finance company.

What are some of the recent trends in the housing finance and fintech space that you think will drive the future of lending? How is IIFL Home Finance gearing up for these changes?

We are keenly tracking and embracing emerging trends in the fintech and housing finance industries in order to be competitive and future-proof. Generative AI-driven underwriting is another, where AI algorithms evaluate borrower risk based on different data sources. This facilitates more inclusive lending for customers who don't have conventional credit histories. Agentic AI where AI platforms that can carry out end-to-end processes without human intervention, is another area that holds great potential. We are investigating its deployment in customer service and operations to facilitate intelligent automation and real-time decision-making. Conversational GenAI is changing rapidly, and although we already employ multilingual chatbots and voice bots, we're striving to further develop their capabilities for more engaging and deeper personalisation. We're also investigating AI use in IT infrastructure management, enabling us to monitor and optimise system performance proactively, enhance uptime, and improve service delivery. Through the preparation for and embracing these emerging trends, we are setting up to spearhead India's housing finance sector in the next phase of digital revolution.