Ten-pointer Checklist To Transform Your NBFC.

October 13, 2022

Ten-pointer Checklist To Transform Your NBFC.

With the intervention of technology, NBFCs have penetrated into the grassroots level of the economy and eased the accessibility in the lending industry. As a consequence of soaring opportunities, many NBFCs have cropped up. (However, how many of them are fully operational, let alone be profitable?)

Here we have a checklist, backed by the joint report by PWC and ASSOCHAM, that will help your NBFC stay ahead of the game, and lead the future.

Tactical enterprise strategy

Have a defined segment, product mix, optimal channel mix, and the geography you want to address. If you don’t have a well-thought strategy, how will you leverage your strengths and opportunities?

Customer service that truly cares

There is nothing better for your business than a satisfied customer. Use digitalization and technology, to not just have better operational functionality, but also to make the customer needs and expectations the focal point of your business.

Upgrade your processes

Administrative and back-office processes, often neglected and left to be done manually, emerge with a higher probability of inaccuracy, errors, and frauds when compared to the front-desk tasks. Hence, the complete transition from a traditional business to the future-ready digital business is required.

Get an edge with Underwriting

Underwriting in NBFCs is pivotal to identify, manage, and mitigate credit risk. Incorporate technology to have a robust underwriting service in place that minimizes the risks involved, and gives you the confidence to innovate and venture into new markets.

Streamlined collections

With the nation moving towards digital payment options, you cannot lurk behind with your traditional methods. You need to have a digital collection system in place that adopts a customer-focused and data-driven approach right from the time the loan is issued.

PS: Our Debt recovery system is proven to drastically reduce the cost of your overhead collection. Check it out here.

Superior technological and digital advancement

Embracing new technology gives you the capability to introduce new value-adding products, efficiently manage risks, lean your processes, tap into new opportunities, increase customer retention rate; everything at a higher pace and lower costs.

Become friends with the competition

Instead of competition, Fin-tech companies can be your potential business partners to explore a mutual interest and leverage each other’s strengths to innovate. Exploit the USP of both your business to create a new market or dominate the existing ones.

Proactive digital risk management

In order to rapidly execute expansion plans, NBFCs often issue uninsured credit, and compromise on the credit-worthiness of the borrower, thus leading to NPAs. It is a no-brainer to have a proactive digital risk management system that ensures that the business does not grow at the cost of profits.

Align organization structure with strategy

Even with the technological advancement, you cannot eliminate human force from the system. Your teams need to have clarity on strategy, their responsibility, and zero-confusion in adapting to any change. Put the thought in designing an efficient work-flow to maximize productivity.

Establish a governance mechanism

NBFCs face many lapses in the market, compelling the RBI to cancel their licenses. To ensure your business does not face the wrath, have a governance mechanism in place that can independently check the health of your business and suggest preventive and corrective measures.

These are our major broad recommendations to put your NBFC on the map of the future. Technology is the ground on which all future NBFCs will be built. AllCloud is a pioneer in offering AutoCloud digital solutions to NBFCs to transform their business. Our products offer insights on what can an able technology partner do for your business. Why don’t you check it out once?

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