Boosting Innovation and Productivity: Through Employee Empowerment

Fostering a culture of ownership among our employees has also been a top priority. By promoting a sense of collective responsibility and empowerment, they have seen a significant boost in productivity, innovation, and overall employee satisfaction, shared Mathew Muthoottu, Managing Director, Muthoottu Mini Financiers, in an exclusive interview with Srajan Agarwal of Elets News Network (ENN).

Could you elaborate on the key strategic initiatives you have implemented since taking this role? How have these initiatives contributed to the company’s growth and transformation?

Since taking over as the Managing Director of Muthoottu Mini Financiers Ltd in 2016, I have implemented several key strategic initiatives that have significantly contributed to the company’s growth and transformation. Our strategy has involved restrategising and reorienting the organisation to ensure structured and calculated operations. This includes fostering mature decision-making, leveraging advanced analytics for precise resource allocation, flattening our organisational hierarchy for agility, and realigning our business units with market demands. The call of the day has been to maximise output using the existing infrastructure and systems in place. These initiatives have enhanced operational efficiency, spurred innovation, and improved our market positioning. Collectively, they have driven the company’s growth, increased profitability, and strengthened our competitive edge.

Fostering a culture of ownership among our employees has also been a top priority. By promoting a sense of collective responsibility and empowerment, we have seen a significant boost in productivity, innovation, and overall employee satisfaction.

Muthoottu Mini Financiers has a long history and a significant presence in the financial services sector. Can you discuss the core values and mission of the organisation? How do these principles guide your decision-making and long- term planning?

Muthoottu Mini Financiers’ core values and mission are deeply rooted in the legacy of our founder, Late M. Mathew Muthoottu. We are committed to realising his vision of establishing Muthoottu Mini as a premier financial venture, serving the community tirelessly and improving lives through financing. The ethos of reliability, trustworthiness, and community service embedded in the Muthoottu tradition inspires me and guides our decision-making and long- term planning.

These principles are at the heart of every decision we make, from expanding our branch network to diversifying our business portfolio. We strive to maintain the highest standards of integrity, transparency, and customer-centricity in all our operations, ensuring we remain a trusted partner for our customers and the communities we serve.

The financial industry faces numerous challenges, from regulatory changes to economic fluctuations. How do Muthoottu Mini Financiers navigate these challenges? Can you share some strategies or practices that have proven effective in maintaining stability and growth?

Our business is affected by two primary factors: internal operations that can be managed through our strategies and external market conditions, such as gold rate fluctuations and evolving regulations, which are beyond our control. However, we must be prepared to face unforeseen challenges like new government policies and economic volatility.

To mitigate industry uncertainty, we have developed a flexible system to adapt to new changes and market conditions. Focusing on operational excellence ensures our processes are robust and agile, allowing us to respond swiftly to external shifts. As Stephen Hawking said, “Intelligence is the ability to adapt to change,” this principle guides our approach to navigating industry challenges.

Through continuous improvement and innovation, we maintain stability and growth. By leveraging technology, fostering a culture of adaptability, and closely monitoring market trends, we can withstand industry fluctuations and capitalise on emerging opportunities. This strategic flexibility is key to our ongoing success in the financial sector.

Corporate social responsibility (CSR) is increasingly essential for companies today. What are some of the CSR initiatives that Muthoottu Mini Financiers is involved in? How do these initiatives align with your vision for the company’s role in society?

At Muthoottu Mini Financiers, we believe that corporate social responsibility (CSR) is a
compliance requirement and a moral obligation. As we expand across states, we actively engage in CSR initiatives supporting underprivileged school-going students in underserved communities across 11 states and 1 Union territory. We have distributed essential school supplies such as school bags and stationery, enabling them to attend schools and contribute to the youth’s development. During this monsoon season, we also intend to distribute garden umbrellas to street vendors near our branches to protect them and their stalls from the rains.

These CSR initiatives align closely with my vision for the company’s role in society. I believe businesses are responsible for giving back to their communities and contributing to
society’s overall well-being. Investing in students provides opportunities for young people to excel and promote values such as teamwork, discipline, and perseverance. Moreover, our CSR efforts are integral to our long-term sustainability strategy. By investing
in our communities, we are building strong relationships, enhancing our brand reputation, and ensuring that our business remains relevant and impactful in the years to come.

Given the competitive landscape of the NBFC sector in India, how does Muthoottu Mini Financiers differentiate itself from its competitors? What unique value propositions or services do you offer that set you apart in the market?

Muthoottu Mini Financiers, a trusted brand in the Gold Loan business for over a century,
continues to showcase qualitative and consistent growth with gold loans as its significant portfolio. However, relying on a single product range can be risky due to uncontrollable market conditions. We are shifting from a product- centric to a customer-centric approach to mitigate this risk. By deeply understanding our customers’ requirements, we are sensibly diversifying our business to serve their needs better.

Our mission is to become a one-stop financial service provider. Our company’s adaptable structure supports rapid diversification, allowing us to expand our portfolio efficiently. However, this transformation will not happen overnight; it will happen consistently and sustainably. This strategic shift enhances our resilience against market fluctuations and ensures we offer a comprehensive range of financial services, setting us apart in the market.

As you look towards the future, what are your major goals and objectives for Muthoottu Mini Financiers over the next five to ten years? How do you plan to achieve these milestones, and what challenges do you foresee?

Looking ahead, Muthoottu Mini Financiers has established an ambitious Vision 2027 plan. This plan outlines our significant goals and objectives for the next five to ten years. By 2027, we aim to expand significantly, reaching a customer base of 1,400,000, an Asset Under Management (AUM) of INR 7,500 crore, and a branch network of 1,400 locations. Additionally, we project robust profitability, targeting a profit of INR 400 crore and a strong team, growing our staff strength to over 7,000 employees. To strengthen our position, we aim to achieve an A++ credit rating. To achieve these milestones, we will leverage our strong base for the company, continue to foster a culture of ownership and innovation among our employees and navigate any challenges that may arise in the competitive NBFC landscape.

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Some key challenges we foresee include regulatory changes, technological disruptions, talent acquisition and retention, and economic fluctuations. To weather economic uncertainties, we must stay abreast of evolving regulations, continuously invest in new technologies, attract and retain top talent, and maintain a diversified portfolio and prudent risk management practices.

Despite these challenges, Muthoottu Mini Financiers is well-positioned for continued growth and success. By staying true to our core values, fostering a culture of innovation and ownership, and delivering superior customer service, we will continue to create value for our stakeholders and contribute to the overall development of our communities.