About the organization
A leading Indian multinational bank, that has an established escrow department with over 4000+ RERA-regulated real estate deals, handling substantial assets under management.
Business Challenges
The bank managed a significant number of RERA deals, which required overseeing funds in real estate transactions to ensure compliance with the Real Estate (Regulation and Development) Act. These deals were not only large in volume, but also involved manual processes, leading to frequent errors, high operational costs, and delays. The challenge was further intensified by the strict regulatory requirements. As a result, the bank’s product team was actively seeking a solution to modernize and streamline these operations, intending to drive revenue through this vertical.
Engagement with DataNimbus
Initially, the bank had planned on building a solution internally. Their tech team reached out to DataNimbus to learn from our experience and understand the nuances. After evaluating the complexity of building a robust system internally, they decided to partner with DataNimbus to develop and implement a comprehensive solution. DataNimbus’ expertise in automating complex workflows, along with our track record of successful implementations, positioned us as the ideal partner for this project.
Solution Implementation
To address the bank’s need, DataNimbus FinHub Escrow platform was deployed. FinHub Escrow focused on modernizing the bank’s escrow processes by automating key components such as:
- Split Payments: Automates multi-party payments, such as a 70-30 split (RERA-compliant payments), ensuring accurate, rule-based fund distribution.
- Scheduled Payments: Streamlines recurring and future transactions by automating payment schedules based on predefined timelines.
- Checklist Management: Ensures comprehensive compliance by automating the tracking and completion of all regulatory and operational requirements.
DataNimbus managed the entire execution, from integrating with their underlying system to deployment, test support, production cutover, and user training, with active collaboration with the bank’s technical team.
Value Creation
By automating their escrow processes, the bank achieved significant reductions in errors and operational costs while enhancing efficiency across their operations. This transformation empowered them to seamlessly scale their RERA deals, driving substantial revenue growth. The modernized approach shifted their focus from time-consuming manual tasks to strategic business expansion, enabling them to deliver a superior customer experience and capitalize on new growth opportunities.
Success Metrics
The modernization of the bank’s escrow department had a profound impact on their financial performance:
- AUM Growth: Achieved a 22% year-over-year growth in assets under management.
- CAGR: Realized a 25% compound annual growth rate (CAGR).
- Deal Volume: Saw a 5x increase in deal count, highlighting the scalability and efficiency gained through automation.
Future Plans
The success of the initial implementation has opened doors for further collaboration with DataNimbus. The bank is now exploring a broader range of services offered by the FinHub suite, beyond traditional escrow models. They are also keen on modernizing their integrations using DataNimbus.io (Data integration platform) and are interested in leveraging DataNimbus’ AI/ML use cases to further optimize their operations.
