Digitalisation has impacted all walks of our lives, from travel, retail, books, music, food, everything. And the world of lending and wealth management is not aloof to the same. It has indeed become a key driver for the change that the financial industry is experiencing. To know more about the driving forces of rapid technology transformation, S Aryendra Kumar, Executive Director & Chief Executive Officer, IKF Home Finance Limited, had a conversation with Srajan Agarwal of Elets News Network (ENN).
What measures are you taking to simplify the loan disbursement process?
We are in constant endeavour to remove the processes that are rudimentary by adopting the right APIs for an example there are applications that help in banking analysis of customers. This alone application will reduce one hour working time per file, similarly there are other applications that help to take quick decisions on Go-No-Go.
Also, the organisation has initiated API with all third party service providers. All our verification done by internal team and external vendors is through digital mode. With current level automation we have reduced time to per cent and when compared to developing countries, it is still under penetrated .
What major changes in terms of analytics, data and automation do you see in the next few years?
Digitalisation has impacted all walks of our lives, from travel, retail, books, music, food, everything. And the world of lending and wealth management is not aloof to the same. It has indeed become a key driver for the change that the financial industry is experiencing.
Consumer needs are now met through innovative ways and they have access to services provided by the NBFC’s through the medium of digital services. Artificial
Intelligence driven data analytics will provide predictive behaviours’ on the needs of customers. The offer of services will reach customers before they release that there is a need for them.
Marking the success in the industry, please share your future expansion around the urban development sphere.
Access to Housing Finance was limited to Tier 1 & Tier 2 cities,definition of Urbanisation is not limited to bigger cities, our objective is to serve the underserved , there is emergence of demand in smaller towns and with digital interventions all our branches will be equipped to serve a larger customer base that is underserved.
How has the technology evolved within your organisation over the years?
In the year 2017 IKF Home Finance started business with a conventional model of delivery and in parallel initiated the journey of digitisation , There has been an aggressive approach to implementation of technology and presently 70 per cent of the processes are digitised that includes customer onboarding through digital mode, online credit checks like CIBIL, eKYC etc, collection through payment apps which in turn connected to RazorPay. There are few implementations that are work in progress , with these implementations once rolled out the organisation can claim that it has reached 90% of its processes in digital mode.
Also Read | How are NBFCs focusing on robust and adaptable risk management model
What are the driving forces for rapid technology transformation?
By implementing the right technology organisation aims at:
- Increasing reach out to the deserving customers that are underserved.
- Improving customer satisfaction by reducing turnaround time for approvals, seamless updates on the movement of files, digital delivery of important communication and updates
- Cost optimisation by productivity improvement of Sales, Credit and operation.
- Control on quality of portfolio by real time monitoring of collections
- Efficiency in field collection team through collection app that will nullify cash collection.
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