Project Cyclops
Project Cyclops is a credit underwriting engine developed by L&T Finance (LTF), an Indian non-banking financial company (NBFC). It combines traditional credit bureau data with alternate data sources, including account aggregator feeds, to assess credit risk.[1] It was deployed in beta for two-wheeler loans in 2024 and has since been extended to other lending segments.
Background
Project Cyclops was among the first initiatives launched by Sudipta Roy after he became Managing Director and CEO of L&T Finance in July 2023, and was developed in-house.[2] Debarag Banerjee, LTF's Chief AI and Data Officer, oversees the system's technical development.[3]
Technology
LTF describes the system as evaluating three types of data: credit bureau history, account aggregator data, and alternate "trust signals" such as geolocation.[3] According to Roy, the system's processing capacity grew from around 100 transactions per second at launch to about 1,400 by its third iteration.[2] A related tool, Project Nostradamus, monitors borrower behaviour after onboarding.[2]
Deployment
LTF launched the beta version across 200 dealers for two-wheeler loans in mid-2024, later extending it to farm equipment and SME finance.[1][3] The company stated that all two-wheeler disbursements were processed through the system by late 2025, with rollout to personal, home, and rural group loans planned for FY26 and FY27.[4]
Business impact
LTF reported that net defaults in its two-wheeler portfolio fell from 2.36 percent in December 2024 to 0.34 percent in June 2025 after the system's rollout.[5] Equity analysts, including Nuvama and Emkay, have referenced Project Cyclops when assessing LTF's credit-cost outlook.[6]Analytics India Magazine has covered the system's development and its role in LTF's broader AI strategy.[7]
See also
References
- ↑ 1.0 1.1 "L&T Finance deploys 'Project Cyclops', a AI-driven next-gen digital credit engine for real-time credit risk assessment". MediaBrief. July 2024.
- ↑ 2.0 2.1 2.2 "MC Exclusive: Cyclops, Nostradamus and more, how L&T Finance is finding success mining alternate data". Moneycontrol. September 2025.
- ↑ 3.0 3.1 3.2 "'Project Cyclops': L&T Finance's Innovative Approach to Credit Underwriting". Dataquest. February 2025.
- ↑ "L&T Finance Ltd. Records Highest Ever PAT of Rs. 735 Crore, up 5% QoQ and 6% YoY for the Second Quarter Ended September 30, 2025". The Wire. October 2025.
- ↑ "L&T Finance's strategic moves paying off, strong returns & growth expected". Business Standard. September 2025.
- ↑ "L&T Finance Q2 beat estimates, analysts upbeat on growth, credit efficiency". Business Standard. October 2025.
- ↑ "L&T Finance Hopes Project Cyclops Would Be 90% Agentic One Day". Analytics India Magazine. June 2025.
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