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English for RRB PO/CLERK AND RBI ASSISTANT MAINS

 


English for RRB PO/CLERK AND RBI ASSISTANT MAINS


(1-10)  Read the passage given below and then answer the questions given below the passage. Some words have been highlighted to help you to locate the question while answering the question given below.



Cloud technology has been increasing its embracers since its inception. The adoption of cloud technology has been accelerating dramatically and is likely to increase more.  According to McKinsey, the expenditure on cloud infrastructure is expected to grow six times that of other IT infrastructure in 2020. Accepting cloud technology brings benefits that the financial services industry are realising, along with cost efficiencies such as faster processing and reduced risk. Adoption of the cloud also brings about an increase in revenue with a higher number of loan applications, improved conversion rates, and better pricing.

McKinsey’s survey suggests that digitizing commercial processes can result in a 25 per cent improvement in profit margins in commercial banks along with improved pull-through rate and experience for both staff and customers. While lenders have embraced digital in one form or another, they are predominantly lagging in realizing the true benefits of digital and cloud. This delay is for reasons including a lack of comprehensive understanding of the possibilities with digital, disconnected legacy systems operating in silos, risk aversion, regulatory restrictions, and security concerns. However, patterns are emerging in the ongoing wave of disruption.

Some customers, based on their experiences with big tech companies (Google, Amazon, Uber, Apple, etc.), are demanding seamless and personalized experiences in financial services. Bain & Company’s survey of more than 151,894 consumers in 29 countries revealed that 54% of respondents trust at least one big tech company with their money more than banks in general. Also, there is another market segment, where people have been traditionally deprived of easy, low-cost and transparent access to credit from traditional financial institutions. A unique combination of business and technology-led innovation is essential to address the requirements of both these customer segments effectively.

There is a need for financial services companies to think outside the box and devise innovative strategies, which can help service all their customers profitably. The market share of retail mortgage origins for Quicken Loans, an innovative digital mortgage lender, was 1% in 2008. The figure escalated to 6% in 2017, and Quicken Loans overtook the third largest bank in the US, Wells Fargo, to become a leading direct-to-consumer mortgage lender. The extensive use of digital, analytics and cloud has enabled capabilities such as on-the-spot approvals, completely automated and paperless processing, personalized loan products, 24X7 door-step service, on-demand scalability, comprehensive credit scorecards-based decision making, branchless operations, and reduced cost of customer acquisition.

A number of ground-breaking financial services companies in India have embraced cloud technologies to power their digital transformations, an approach which aligns well with their focus on customer convenience, speed, flexibility, and future-readiness. Taking an example of Shubham Housing Development Finance (SHDF) where the company is focused on providing affordable housing finance to families with informal income. Shubham adopted the cloud to scale up quickly and cost-effectively to match their growth ambitions. By digitizing their lending workflow end-to-end on the cloud, Shubham reduced loan application processing times by 72% and reduced turn-around time for loan approval by 50%. Another is Roha Housing Finance which was set up with an aim to disrupt the housing loan segment by providing approval for housing loans in less than 2 hours in an industry where the average is 3 days, a 97% reduction. Roha offers end-to-end loan processing in 7 days, which is 50% faster than the housing finance industry benchmark. The company uses the flexibility, agility and cost-efficiency of cloud-based technology to offer a ‘customer-first’ approach and adopt innovative ways for assessing creditworthiness. There’s Ess Kay Fincorp, a leading Non-Banking Finance Company, that chose a cloud-based lending platform to digitize their entire lending business. Ess Kay reduced their loan approval time by 33% while enhancing their customer experience significantly and unlocking business growth.

The unique combination of digital operations powered by cloud technologies has helped financial service companies attain their ambitious business objectives. Many of them have established new benchmarks in terms of speed, customer service, and transparency. It supports a range of products including personal loans, home loans, auto loans, education loans, loan against property, credit cards, consumer durable loans, tractor loans, agriculture loans, value-added loans, loans against securities, working capital loans, bill discounting, construction finance, structured finance, term finance and project finance. Our Artificial Intelligence-powered Nucleus Lending Analytics helps lenders in benefiting from data-driven insights across all facets of their lending operations. These include identifying new products for specific customer segments, targeting the right customers, optimizing marketing campaigns, offering risk-based pricing, enhancing the speed and accuracy of credit decision making, managing the quality of portfolios, reducing customer churn, identifying accounts at the pre-delinquent stage, and improving loan collections.


1. What reasons make lenders unable to realise the true benefits of digital and cloud?


A. A lack of comprehensive understanding of the possibilities with digital.

B. Disconnected legacy systems operating in silos

C. Risk aversion

D. Regulatory restrictions and security concerns

E. All of these


2. Choose the antonym of mortgage?


A. Redeem

B. Annoy

C. Disturb

D. Retard

E. Escape


3. Choose the odd one out of the following?


A. Ess Kay Fincorp

B. Sai Point Finance

C. Roha Housing Finance

D. McKinsey

E. Bain & Company


4. According to the passage, what does the McKinsey report tell?


A. A 25 percent Improvement in profit margins

B. Infrastructure is expected to grow six times in 2020.

C. Cloud technology has been increasing its embracers since its inception.

D. Both A and C

E. Both A and B


5. According to the passage, what is said about cloud technology?


A. Cloud helps in achieving only the conservative ambitions set by companies 

B. It has been increasing its clients since its inception.

C. It brings benefits in terms of cost efficiencies.

D. It increases revenue with higher number of loan applications, improved conversion rates, and better pricing.

E. All of these


6. What is the synonym of silos?


A. Isolation 

B. Desperation

C. Inspection 

D. Quotation

E. None of the above


7. According to the passage, what has been told about SHDF?


A. Reduced turn-around time for loan approval by 50%

B. Aims to provide affordable housing finance to families with informal income.

C. It scaled up quickly and cost-effectively using Cloud technology.

D. Reduced loan application processing times by 72%.

E. All of these.


8. What happened to Ess Kay business after they chose cloud-based lending?


A. It enhanced the customer experience, thereby unlocking business growth.

B. Customers demanded seamless and personalized experiences in financial services.

C. Reduced loan application processing times by 72%.

D. Reduced turn-around time for loan approval by 50%.

E. Comprehensive credit scorecards-based decision making and branchless operations.


9. Which of the following statements is correct as per the given passage?


A. Shubham reduced loan application processing times by 73%.

B. Robots help lenders in benefiting from data-driven insights.

C. Roha offers end-to-end loan processing in 9 days.

D. Ess Kay reduced their loan approval time by 34%.

E. The market share of retail mortgage originations was 1% in 2008.


10. Which of the following sentences is incorrect as per the given passage?


A. Expenditure on cloud infrastructure is expected to grow six times.

B. Adoption of the cloud also brings about an increase in revenue

C. Cloud technology brings benefits that the financial services industry are realizing.

D. Lenders are predominantly lagging in unrealizing the true benefits of digital and cloud.

E. A unique combination of business and technology-led innovation is essential.




ANSWER - 


1. Read the passage thoroughly to find the correct answer.

One can easily find the solution to this question in the second paragraph of the passage where all the above statements are given as the reasons for lenders unable to realize the true benefits of digital and cloud.

Hence, option E is the correct answer.


2. Here, the meaning of the word should be known to decide the correct option.

Redeem means to gain something in exchange for payment;

Annoy refers to irritation.

Disturb means to interfere with something.

Retard refers to slow down or hold back something.

Escape refers to get away from something or somewhere.

Mortgage refers to a legal agreement by which a bank or other creditor lends money at interest in exchange for taking the title of the debtor's property,

Hence, the correct answer is redeemed i.e. option A.


3. Here, one can easily find the answer just by looking at the options provided one has read the comprehension. All the companies except Sai Point Finance have been mentioned in the comprehension.

Hence, option B is the correct answer.



4. Let’s look into the first and second paragraphs. There it has been mentioned about McKinsey’s report. In the first paragraph option A is mentioned and in second paragraph option B is mentioned, thereby making both the statements correct.

Hence, option E is the correct answer.



5. Read the passage thoroughly to find the correct answer.

One can easily find the solution to this question in the third paragraph of the passage where all the above statements are given as the reasons for lenders unable to realise the true benefits of digital and cloud.

Hence, option E is the correct answer.


6. Let’s look into the 3 paragraphs. Here, silos have been mentioned. One has to know the correct meaning of the word in order to mark the correct answer. The meaning of the words are:

In a workplace-A silo mentality is a reluctance to share information with employees of different divisions in the same company.

Isolation means separation or segregation.

Desperation refers to hopelessness or distress.

Inspection means to analyse carefully or examine something.

Quotation means citation or mentioning something in proper order.

Hence, option A is the correct answer.



7. Let’s look into the second last paragraph. Here, you’ll find about Shubham Housing Development Finance (SHDF) which clearly has all the points mentioned here. Thus all the statements are correct.

Hence, option E is the correct answer.


8. If you read the comprehension thoroughly, you will be able to get the correct answer. Only the sentence in option A is correct and rest are not related to Ess Kay business.

Hence, option A is the correct answer.


9. Read each paragraph thoroughly to find the correct answer. Here, look for the sentences within the paragraph to find the incorrect ones. After analysing the sentences, you’ll find sentence in option E is correct. The rest of the sentences are modified and so are incorrect. The correct sentences for these are:

Shubham reduced loan application processing times by 72%.

Analytics helps lenders in benefiting from data-driven insights

Roha offers end-to-end loan processing in 7 days.

Ess Kay reduced their loan approval time by 34%.

Hence, option E is the correct answer.


10. Here, a careful go through the passage is required to mark the correct answer. Read through the sentences, then you’ll be able to distinguish between right and wrong sentences.

Only option D is incorrect because of the word unrealising. Instead, it should be realising as in:

“A unique combination of business and technology-led innovation is essential to address the requirements of both these customer segments effectively.”

Hence, option D is the correct answer