Asset tracking can prevent default
BENGALURU: I could have avoided big corporate defaults like in Vijay Mallya if I had tracked assets like Kingfisher Airlines He promised helicopters. The geotagging of borrowers' assets can help prevent deliberate fraud/default.
“Kingfisher Airlines pledged a few helicopters (among other assets) to obtain loans. Only when the lenders attempted to take possession of these assets did they realize that the helicopters had fallen into disrepair and could fetch little more than scrap value. Therein lies a strong application of low-cost technology to track the presence, use and quality of assets. ”
The survey said borrowers (in Mallya's case) may not be happy with this infraction and follow-up of their movements. “While these technologies are powerful, they carry a significant risk, the risk of violating the privacy and dignity of the borrower. Compliance with debt obligations should not invade the borrower's private sphere.