Client

A leading Loan Management System (LMS) provider serving 50+ NBFCs across personal loans and MSME financing.

Context

For an LMS provider, onboarding quality directly decides customer retention.

Every failed Video KYC, every poor document upload, every manual review ticket doesn’t just affect one borrower, it impacts every NBFC using the platform. And over time, that friction shows up as lost conversions, higher support load, and churn.

This LMS was seeing exactly that.

The Problem: When Document Quality Breaks the Funnel

The LMS powered digital lending journeys for more than 50 NBFCs. Demand was strong, but the funnel was leaking badly.

Nearly 70% of applicants dropped off during document upload and Video KYC. Not because they were ineligible, but because the system couldn’t reliably handle real-world conditions.

A few issues kept repeating:

• Poor document quality went unchecked.
  Blurry photos, glare, partial crops, black-and-white scans, all reached agents before being flagged. Around 40% of PAN and Aadhaar uploads failed late in the process.

• Video KYC queues kept growing.
  Agents spent 8–10 minutes per call, queues stretched to 40 minutes, and borrowers simply abandoned the flow.

• Sophisticated fakes slipped through.
  Screenshots, layered images, and even AI-generated IDs passed basic OCR checks and surfaced later as fraud.

• No explainability for ops teams.
  When something failed, teams couldn’t tell why. Thresholds couldn’t be tuned. Trust in the system eroded.
  
  
  

At scale, even small inefficiencies added up. The LMS estimated that 10% friction translated into ₹25 Cr+ in annual revenue loss for its NBFC partners.

Competitors offering smoother onboarding were starting to win deals.

The Shift: Fixing Quality Before It Reaches Humans

The LMS partnered with SecureID by Cashfree Payments with one clear objective:
stop bad inputs early, and let good applicants pass without friction.

Instead of adding more manual checks, the platform rebuilt verification around real-time intelligence.

What Changed

1. SmartOCR as a Quality Gate, Not Just OCR

The biggest change was how documents were handled.

With SmartOCR, every PAN and Aadhaar upload was evaluated in real time, before reaching agents or Video KYC.

Documents were checked across multiple layers:

Quality signals

• Blur, glare, partial crops, black-and-white copies

• Face clarity and Aadhaar QR visibility

Forgery signals

• Screenshot detection

• Image alteration and photo imposition

• AI-generated document detection

Validation logic

• Age eligibility checks

• OCR vs QR cross-verification

• Handling 10–15 year photo gaps

Instead of a blunt pass/fail, documents were scored and grouped into confidence bands:

• High confidence: zero-touch origination

• Medium confidence: soft re-upload prompts

• Low confidence: Video KYC escalation

This alone removed a huge amount of unnecessary agent load.

2. Video KYC Only Where It Actually Helped

Video KYC stopped being the default fallback.

With cleaner inputs reaching the system, Video KYC was reserved for genuine edge cases.

SecureID’s RBI-compliant Video KYC handled:

• Passive liveness and micro-expression checks

• Multilingual support across 10+ Indian languages

• Smart scheduling to reduce no-shows

• Stable performance even on low bandwidth (2G networks)

Call durations dropped from 8–10 minutes to around 3 minutes, and queues reduced sharply.

The Impact

Once rolled out across NBFCs on the platform, results were visible quickly:

• 90% of applications moved to zero-touch onboarding

• Video KYC call time reduced by over 70%

• 18% of tampered documents blocked upfront

• 75% fewer manual review support tickets

• 25% uplift in NBFC conversion rates

• 99.8% success rate, even in Tier-3 network conditions

• 10+ languages enabled, expanding reach beyond metros

Agents focused only on real edge cases.
Ops teams regained confidence in outcomes.
NBFCs saw cleaner funnels without slowing growth.

What Changed for the LMS

The LMS no longer had to choose between speed and control.

Verification became predictable.
Support load dropped.
Customer trust improved.

Most importantly, the platform stopped losing deals due to onboarding friction.

Conclusion

Fragmented tools and reactive checks were holding the LMS back.

By adopting SecureID’s SmartOCR + Video KYC stack, the platform fixed the problem at the source, document quality and explainability, instead of patching failures later.

The result was simpler onboarding for genuine borrowers, stronger fraud control for NBFCs, and a system that finally scaled to India’s real-world lending conditions.

About SecureID

SecureID by Cashfree Payments helps lending platforms verify users at scale without sacrificing speed or accuracy. With SmartOCR trained on 10M+ Indian IDs and RBI-compliant Video KYC, SecureID enables reliable, explainable onboarding across banks, NBFCs, and LMS platforms.