About the organization
A multinational bank, also India’s 3rd largest private sector bank by assets and 5th largest by market capitalization. The bank has an established escrow department that handles 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 was deployed. FinHub Escrow focused on modernizing the bank’s escrow processes by implementing 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, while the bank’s technical team actively participated.
Value Creation
The implementation of DataNimbus FinHub Escrow led to significant value creation for the bank. By automating their escrow processes, they not only reduced errors and operational costs but were also able to scale their RERA deals and increase revenue. This modernized approach allowed them to focus on expanding their business, rather than being bogged down by manual processes.
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.
