Bajaj Finance moves core lending systems to cloud

Bajaj Finance Ltd, one of India’s largest non-banking financial companies, has completed a major overhaul of its core lending system, moving to a cloud-based platform developed by Pennant Technologies, a Fintech company.

The shift marks one of the biggest digital transitions in the Indian financial services sector, covering over 50 million loan accounts. The company has replaced its older monolithic system with Pennant’s ‘pennApps Lending Factory’, aiming to simplify and modernise operations across various loan categories including consumer finance, housing, and commercial loans.

Bajaj Finance said the move was part of a broader effort to improve operational efficiency and respond more swiftly to changing customer needs and regulatory demands. The company’s Vice Chairman, Rajeev Jain, described the transition as a step towards using technology to improve service delivery and support future growth.

Previously, Bajaj Finance managed its wide range of lending services through an older, centralised system. However, as the volume of business grew and the lending environment became more complex, the need for a more agile platform became clear. The new system allows the company to run all its loan products on a single, cloud-based infrastructure.

Mudit Mehrish, Chief Information Officer at Bajaj Finance, said what began as a limited technology upgrade soon expanded into a full-scale transformation. “Today, all of our lending operations run on this new platform, which supports faster innovation and helps us deliver better experiences to our customers,” he said.

The technology shift has already led to noticeable improvements. The platform now manages over 27 different types of loan products, offering greater flexibility and helping to reduce costs through more streamlined operations.

Pradeep Varma, Managing Director at Pennant Technologies, said the success of the project highlights the importance of robust and adaptable technology in today’s financial landscape. The initiative also involved the complex migration of Bajaj Finance’s entire loan portfolio, both secured and unsecured – a task that Varma called one of the most significant data migration efforts seen globally in the lending sector.

Pennant’s lending platform has received recognition from industry bodies such as Gartner, Everest Group, and NASSCOM for its performance and scalability.