Transforming Debt Collections: AI's Role in Financial Revolution

Public Sector Banks in India are employing AI-powered digital platforms like Spocto X to improve debt collections, cut non-performing assets, and enhance borrower engagement. This transformative technology has drastically reduced bounce rates and SMA ratios, highlighting the critical role of AI in modernizing financial operations.

Public Sector Banks (PSBs) in India are turning to AI-powered platforms to overhaul their debt collection processes and reduce Non-Performing Assets (NPAs). The Spocto X platform has been instrumental in this transformation, offering solutions that cut bounce rates by 25-30% and optimize recovery strategies.

At the Bharat Collections & Lending Summit, Shri Sanju Mangrulkar, a senior official from the Central Bank of India, shared that the bank's Special Mention Account (SMA) ratio fell from 8% in 2024 to 3% in 2025 after adopting Spocto X's technology. This marks a significant improvement in recovery outcomes and underscores the potential of AI solutions.

Gaurav Kumar, CEO of Spocto X, stated that their technology enhances efficiencies through hyper-personalized strategies. As public sector banks continue to adopt AI, experts anticipate a narrowing efficiency gap with private banks, strengthening India's financial ecosystem. Spocto X's success demonstrates the role of innovation in reshaping finance.

(With inputs from agencies.)