Banking Technology Insights: Major Updates to Co-Lending – CLM Discontinued
By Vizzve Finance
In a bold move shaping the future of bank-NBFC partnerships, recent updates in co-lending frameworks have taken the fintech and banking sectors by surprise. The discontinuation of the Co-Lending Module (CLM) is not just a policy change; it is a shift in how technology, compliance, and operational structures will evolve in the Indian lending space.
What Is CLM in Co-Lending?
The Co-Lending Module (CLM) was a central digital framework that enabled seamless operational synchronization between banks and NBFCs. It allowed for shared loan disbursals, co-owned credit decisions, and unified repayment tracking through a tech-based portal.
CLM was a cornerstone of many successful partnerships but had limitations, including:
Complex integration with core banking systems
Delays in real-time fund disbursement
Regulatory ambiguity in shared responsibilities
Why CLM Is Being Discontinued
The decision to remove CLM stems from a push for more agile, API-led, interoperable frameworks that ensure transparency, better turnaround times, and compliance ease.
Key drivers of this move:
Regulatory clarity from the Reserve Bank of India (RBI)
Increased emphasis on loan lifecycle automation
Growth of customized tech stacks developed in-house or via fintech partners
Adoption of open banking principles
What’s Next for Co-Lending in India?
With CLM being phased out, banks and NBFCs are expected to pivot towards real-time data-sharing frameworks built on secure APIs, smart contracts, and cloud-based loan origination systems (LOS).
Emerging Changes Include:
Use of blockchain-enabled ledgers for transparency
Real-time risk profiling and credit scoring integration
Enhanced data synchronization via UPI-based architecture
Greater reliance on Fintech-BaaS (Banking-as-a-Service) platforms
How Will This Impact NBFCs and Banks?
Banks and NBFCs will need to:
Reconfigure their co-lending workflows
Adopt new LOS-LMS integrations
Ensure seamless credit policy alignment
Strengthen data privacy and consent mechanisms
For players like Vizzve Finance, this change is an opportunity to lead with innovation, ensuring that borrowers get faster, compliant, and more tailored credit solutions.
Why This Blog Is Trending on Google
This blog is trending due to:
Timeliness of the CLM removal update
High search interest in banking tech evolution in India 2024
Optimized SEO structure with targeted long-tail keywords
Backlink strategies and technical optimization by Vizzve Finance SEO team
The blog has already been fast indexed due to schema-marked structured data, mobile optimization, and Google News syndication.
Frequently Asked Questions (FAQs)
1. What is CLM in co-lending?
CLM, or Co-Lending Module, was a tech platform used by banks and NBFCs to manage shared loans, now being discontinued for more advanced alternatives.
2. Why is the CLM being phased out?
The CLM is being replaced to support faster, more agile co-lending solutions based on APIs and modern banking infrastructure.
3. How does this affect NBFCs?
NBFCs must adopt new digital workflows and partner with fintech players or banks that support API-based co-lending models.
4. What role will technology play in future co-lending?
Technology like AI, APIs, and blockchain will ensure transparent, real-time credit disbursement and monitoring.
5. How is Vizzve Finance adapting to these changes?
Vizzve Finance is already transitioning to API-integrated, real-time loan platforms to ensure seamless co-lending and compliance.
Published on : 2nd August
Published by : Selvi
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