Bajaj Finance Transitions Core Lending System to Pennant’s New-Age, Cloud-Based System; Largest Scalable Transformation in India with 50 Million+ Loans

Pennant Technologies has successfully completed a landmark core lending transformation for Bajaj Finance Ltd. (BFL), India’s largest non-bank lender.

Pennant Technologies has successfully completed a landmark core lending transformation for Bajaj Finance Ltd (BFL), India’s largest non-bank lender. This initiative involved transitioning BFL from a monolithic loan management system to Pennant’s innovative PennApps Lending Factory, a modern, scalable and agile digital lending platform. This significant undertaking, the largest of its kind in India’s financial services industry, has streamlined Bajaj Finance’s retail, commercial and business loan operations, enabling seamless management of over 50 million loans while delivering enhanced agility, operational resilience and customer-centric experiences across the lending lifecycle.

Before this transformation, Bajaj Finance utilised a long-serving loan management system that, while effective for a time, no longer met the evolving demands of the lending landscape, which included increasing regulatory complexity, rising operational costs and changing customer expectations. Recognising the need for a more agile and scalable digital-first platform, Bajaj Finance embarked on this strategic shift to future-proof its lending operations. The transition to PennApps Lending Factory marked a significant leap forward, modernising lending operations across a diverse range of loan products, from consumer finance to corporate portfolios, now all unified-on Pennant’s robust loan management system.

The implementation of PennApps Lending Factory has yielded a tangible business impact across Bajaj Finance’s lending operations. It has enabled the management of over 27 loan product variants across more than 50 million loan accounts on a single, composable and resilient platform, demonstrating remarkable scale and flexibility. Furthermore, this transition to a unified platform has resulted in a significant reduction in loan servicing costs, leading to improved operational efficiency and cost savings.

This transformative project also involved one of the most significant data migration initiatives in the global lending industry, successfully moving Bajaj Finance’s entire lending portfolio, including both secured and unsecured products. This collaboration reinforces Pennant Technologies' position as a trusted partner for financial institutions, empowering them to reimagine customer experiences, accelerate time to market and thrive in a digital-first world. The PennApps Lending Factory has garnered recognition from leading industry analysts and organisations, further validating its innovation, scalability and composability.

“What started as a focused engagement to modernise specific lending capabilities quickly evolved into an enterprise-wide transformation and a strategic partnership,” added Mudit Mehrish, Chief Information Officer, Bajaj Finance. “Today, our lending operations run seamlessly on PennApps Lending Factory, enabling us to innovate faster, scale effortlessly and deliver superior customer experiences.”

About Bajaj Finance Ltd: Bajaj Finance Ltd. (BFL), a subsidiary of Bajaj Finserv Ltd., is a deposit-taking Non-Banking Financial Company (NBFC-D) registered with the Reserve Bank of India (RBI) and is classified as an NBFC-Investment and Credit Company (NBFC-ICC). BFL serves over 100 million customers through a diversified portfolio comprising consumer loans, SME finance, commercial lending, rural lending, fixed deposits and payments, offered through Web, App and at 4,000+ locations. As a FinAI company, BFL is focused on continuous innovation through the smart use of technology, data and analytics to drive seamless, simplified and personalised experiences for its customers. BFL has the highest domestic credit rating of AAA/Stable for long-term borrowing, A1+ for short-term borrowing and CRISIL AAA/Stable & [ICRA]AAA(Stable) for its FD program. It has a long-term issuer credit rating of BBB-/Stable and a short-term rating of A-3 by S&P Global Ratings. It has a long-term issuer rating of Baa3 with a Stable outlook and a short-term rating of P-3 from Moody’s Rating.  

About Pennant Technologies: Pennant Technologies is an agile and innovative financial technology company that empowers banks and financial institutions to transform their lending operations. Its future-ready lending solutions offer composable, scalable and highly configurable platforms that enable differentiated experiences across loan origination, servicing and collections. Designed to handle high volume, accelerate transaction velocity and ensure product veracity, Pennant’s platform supports digital-first strategies with unmatched operational efficiency and flexibility. Trusted by leading financial institutions across Asia, Pennant continues to drive innovation, resilience and excellence in lending.

Disclaimer: The article is for informational purposes only and not investment advice.