FinNova Capital

Loan Default Prediction Software


FinNova Capital, a digital lending startup, was facing rising loan defaults due to ineffective risk prediction systems. Manual underwriting couldn’t keep up with the surge in loan applications, leading to higher non-performing loans (NPLs) and reduced profitability. To solve this, they partnered with Kody Technolab to build custom AI-powered loan default prediction software for smarter decisions and stronger risk control.

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Results & Impact

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Drop in non-performing loans within 6 months

20–40%
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Faster loan approvals with AI underwriting

50%
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Better credit scoring accuracy

30%
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Improvement in early risk detection

60%
Idea

Building a Real-Time Loan Default Prediction System for Smarter Lending

FinNova Capital needed a faster, more reliable way to predict lending risks. A custom loan default prediction software instantly assessed borrower risk using financial and behavioral data, replacing manual processes with a real-time loan default prediction system.

Challenges

The Risk of Relying on Manual Assessments in Modern Lending

FinNova Capital struggled with high-risk lending due to slow manual assessments and no real-time borrower insights. Loan default rates crossed 25%, driven by delayed decisions and the lack of early risk detection.

Solution

Designing a Predictive Analytics Solution to Control Loan Defaults

Smart, real-time risk evaluation became key to helping FinNova Capital control loan defaults at scale. Kody Technolab built SmartRisk AI, a predictive analytics solution that uses historical and real-time data to instantly assess loan application risk.

Technologies Stack

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Languages

  • python

    Python

  • angular

    Angular

Cloud & Hosting

  • S3

    S3

  • EC2

    EC2

Framework

  • scikit-learn

    Scikit-learn

  • xgboost

    XGBoost

Database

  • sql

    SQL

Loan Default Prediction Software Design

Here’s a brief overview of the Loan Default Prediction Software we built and delivered for FinNova Capital.

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loan default prediction model software
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bank loan default prediction software
reduce loan defaults with ai software

Key Features of

FinNova Capital’s AI-Driven Loan Default Prediction Platform

loan default prediction platform

Instant Credit Scoring

Generates a real-time credit score for each borrower using financial, behavioral, and alternative data within seconds of applica

Default Risk Prediction

Calculates the probability of borrower default based on historic repayment trends and current application behavior to support faster loan approvals.

Real-Time Risk Alerts

Flags high-risk borrowers instantly and notifies the credit team before disbursement, helping to prevent potential defaults early.

Borrower Risk Profiling

Segments applicants into risk categories based on financial health and repayment behavior, enabling smarter loan term offerings.

Instant Credit Scoring

Generates a real-time credit score for each borrower using financial, behavioral, and alternative data within seconds of application.

Default Risk Prediction

Calculates the probability of borrower default based on historic repayment trends and current application behavior to support faster loan approvals.

Real-Time Risk Alerts

Flags high-risk borrowers instantly and notifies the credit team before disbursement, helping to prevent potential defaults early.

Borrower Risk Profiling

Segments applicants into risk categories based on financial health and repayment behavior, enabling smarter loan term offerings.

What they said is all mater to us!

James C. McDuffie

CEO

Kody Technolab built a robust predictive analytics solution, SmartRisk AI, tailored to FinNova’s needs. This AI-driven platform leverages historical and real-time data to assess the risk of each loan application instantly.

Our Process to

Build FinNova Capital’s Loan Default Prediction Platform

Data Audit & Collection

1 - Data Audit & Collection

Consolidated three years of lending data and added alternative sources like social profiles and spending behavior for deeper risk insights.

Model Development

2 - Model Development

Trained Random Forest & Logistic Regression models, applying feature engineering and risk factor analysis to boost prediction accuracy.

System Integration

3 - System Integration

Integrated the Loan Default Prediction System with FinNova’s CRM and loan origination platforms, deployed on AWS for real-time scalability.

Testing & Optimization

4 - Testing & Optimization

Enabled live feedback loops for continuous model improvement and monitored borrower segments to refine system performance.

The Experts Who Built FinNova Capital’s SmartRisk AI Platform

This project was brought to life by a dedicated cross-functional team at Kody Technolab.

built idea
Project Manager

Project Manager

Led project execution, client communication, and delivery timelines.

Cloud Architects

Cloud Architects

Deployed scalable cloud infrastructure using AWS services.

Software Engineers

Software Engineers

Developed APIs and integrated SmartRisk AI into existing systems.

Data Scientists

Data Scientists

Designed, built, and trained predictive machine learning models.

QA Engineers

QA Engineers

Conducted continuous testing to ensure system reliability and model accuracy.

UIUX Designers

UI/UX Designers

Created intuitive dashboards for enhanced risk visibility and user insights.

FinNova Capital

Protect your lending portfolio with real-time risk prediction

With Kody Technolab’s predictive analytics expertise, you can lower defaults, approve smarter, and manage lending risk in real-time.

finnova capital use case

Accelerate decision-making with scalable intelligence built for real-world outcomes.

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    Contact Information

    +91 93167 56367

    +91 93772 29944

    Offices
    INDIA

    INDIA

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    CANADA

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    USA

    USA

    Datamac Analytics LLC, One Financial Plaza, FL 1000, Fort Lauderdale FL, 33394

    UK

    UK

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