In the realm of the financial inclusion world, technology has emerged as the guiding thread, weaving a story of progress and empowerment. At the heart of this narrative lies the “High Tech-High Touch” model, a delicate equilibrium that has ushered in a new era of customized financial services in the rural landscape, where technology serves as the bedrock.
CreditAccess Grameen Ltd., India’s largest Non-Banking Financial Company-Microfinance Institution (NBFC-MFI), is a testament to this transformative journey. With 1,826 branches spanning the hinterlands and serving over 44 lakh customers, reliance on technology has been unwavering, propelling us towards ever-evolving business objectives.
In our story, technology is just not an enabler but a business partner, personified by one of the largest 14,000-plus field staff equipped with tablets, rendering us a “Mobile First” organization. We strive to enrich both employee and customer experience with 100% digital customer onboarding, same-day loan disbursement, vernacular SMS messaging, customer specific QR codes for repayment, etc.
One of our distinctive features is the alignment of loan repayment structures with our client’s preferences and cashflow positions at an unprecedented scale. This is among the unique features of the microfinance industry across the globe. Behind the scenes, we have undertaken significant IT enhancements, reduced friction, and ensured rapid responsiveness with faster turnaround times. We employ platform-based solutions, avoiding hardcoded customizations, thus rendering our architecture more agile and adaptable.
Our journey has been one of resilience and adaptability. In the challenging times of the COVID-19 pandemic, our agility shone through as we swiftly implemented changes, including enabling moratoriums and repayment schedules faster than any competitor. Such unprecedented situations have tested our skills and driven us toward developing low-code platforms and tools to expedite the implementation of new technologies. In March 2022, when the Reserve Bank of India (RBI) introduced new regulatory changes, we were among the first to embrace and implement them across all our applications within a mere three to six months.
The applications are engineered to function seamlessly in both online and offline modes, addressing the challenges of last-mile connectivity and low data transfer rates. Partnerships with fintech entities have broadened our horizons. These collaborations enable us to harness richer data from credit bureaus and third party data sources and analyze credit behaviour patterns, empowering our risk department to configure credit rules tailored to different geographies and build predictive capabilities.
Our aim is to improve approval rates while maintaining asset quality and providing personalised products to a wider audience as we continue to grow bigger.
The commitment to data analytics is unwavering, with strategic investments in data platforms to democratize data access across departments. Real-time dashboards empower field executives to monitor their operations effectively use data for faster decisioning. This technological prowess enables us to process over 20 lakh transactions daily. We have embarked on a journey of automating various processes involving high volumes through multiple BOTs reducing mundane tasks for field, human errors . Our quest for innovation extends to the field of digital lending, where customers can form groups and initiate loan processing independently.
Security is hygiene and it is paramount given our status as the largest NBFC-MFI. We have established robust security foundations and continuously invest in infosec solution, review and improve process, conduct regular vulnerable assessment and IT/Infosec audits thereby improving the security posture of the organisation.
Our vision extends beyond technology; it encompasses empowering our users to be IT-enabled, productive, and efficient decision-makers.
Our journey is a testament to the indomitable spirit of innovation and adaptability. Technology has paved the way for better delivery mechanisms and increasing operational efficiency resulting in increased credit supply which is the need of the hour. We are committed to driving this vision forward in our inclusive journey. With the aid of analytical tools and new technological innovations, we aim to achieve a milestone of INR 50,000 crore AUM in the coming 4-5 years helping transform the financial landscape.
(This article is authored by Sudesh Puthran, Chief Technology Officer at CreditAccess Grameen Ltd. )
