Tablets drive speed and convenience
CreditAccess Grameen is leveraging technology capabilities to improve efficiency and enhance the quality of customer experience:
The IT support s y s t e ms a t CreditAccess Grameen help it in c o mp l e t i n g several processes involved in the lifecycle of a loan transaction. For its operations, CreditAccess Grameen, as an NBFCMFI, has focused on implementing a centralized and consolidated information system to enable a smooth and swift flow of information and data across the system.
Explains Udaya Kumar Hebbar, MD & CEO: “We have our IT infrastructure capable of controlling our operating costs and providing quality service to our customers. Our systems have assisted us with data entry automation of loan origination system, credit underwriting process, underwriting rule engine, deviation triggers to minimize human errors, branch accounting system and maintaining customer history. We will continue to embrace state of the art technology solutions to support our growth and enable more efficient operations to benefit our customers, as well as to optimize our operating efficiency.”
The company has used information technology extensively in its operations and continuously invests in energyefficient office equipment at all office locations. Udaya Kumar says several efforts have been made towards technology absorption and the benefits are visible like product improvement, cost reduction, product development or import substitution. The company has also spent on research and development.
TABLET APPLICATIONS
The NBFC continues to actively upgrade its technology architecture and applications to keep pace with changes in the microfinance sector. “With initiatives such as field force automation through use of tablets, robust internal communication and knowledge management systems, there are direct benefits in terms of real time information flow between teams, more effective management of operations as well as reduction i n processing times,” says Udaya Kumar. “The tabletbased applications allow us to make the loan application process convenient to our customers and streamline credit approval, administration and monitoring processes. For example, tablet-based applications allow us to complete our KYC procedures, perform instant credit bureau check, accept new loan applications, loan sanctions and manage collections process with improved efficiency while helping us to reduce overall paperwork,” he adds.
CreditAccess Grameen is also using technology capabilities such as cashless disbursements through IMPS, instant credit eligibility checks, etc, to improve efficiency as well as enhance the quality of customer experience.
Typically, it takes 1 week to process different kinds of loans. The company receives a new loan application in one center, it does instant credit bureau check and asks for group approval. The application is entered in the tablet and then sent for approval. The sanction letter is given at the subsequent center meeting and disbursement is done directly to the customer’s bank account.”
TECHNOLOGY PARTNERS
CreditAccess Grameen has partnered with Bharti Airtel, Sify and Tata
Teleservices for network connectivity in all critical locations. It has been working in partnership with IBM on outsourced infrastructure management services. The data center and disaster recovery server infrastructure management is done by an outsourced service provider. It has also added another service provider Cloud4C for few of the non-core applications to ensure uninterrupted support along with usage of cloud-based service providers such as Microsoft Azure and Amazon Web Services (AWS) for few of the dynamic application requirements.
CBS VENDOR
The company has implemented T24
MCB, the core banking solution offered by Temenos, and customized it to suit its business operations. “The higher levels of automation, controls and flexibility provided by the system enable us to achieve our vision of reaching out to a larger customer base,” says Udaya Kumar.
The company implemented CBS in 2015 with Tech Mahindra as implementation partner. Udaya Kumar says at present Techmil is the technology partner that helps the company on upgradation and support.
SIZEABLE TECH INVESTMENT
CreditAccess Grameen has heavily invested in technological innovations and in streamlining business processes. Its efforts have been endorsed with industry standard ratings, certifications and many prestigious awards. Udaya Kumar explains the focus is always on robust customer selection, risk management policies and inhouse designed audit system and these have resulted in healthy asset quality and lower credit costs. “We have maintained a strong track record of financial performance and operating efficiency over the years,” he says.
AI: INNOVATION WORKSHOP
models and delivery models that could potentially impact the segment and customers. Udaya Kumar says there was an insightful presentation on Artificial Intelligence and how it could impact the future ecosystem. The deliberations later were translated to key focus areas which then would be distilled to initiatives or projects to be explored by Strategy, Innovation or other functional teams. The workshop was attended by the management team, 3 of the board members and a few external experts from the sector.
LEARNING PORTAL
information and data across the system. This has enabled the company to control the cost of operations and provide improved services to customers. Udaya Kumar says the company has focused on adopting state-of-the-art technology solutions to support the company’s growth and enhance the efficiencies of its operations. The company, he adds, has made significant progress on enhancement of mobile device-based data entry for customer onboarding, instant credit checks for new loan applications as well as field collections. All the field officers are provided with tablets for data entry and are enabled with android based apps for entry of loan collections, foreclosures, disbursements as well as for new customer onboarding.
There are 64 members in the IT team with skillsets ranging from application development and maintenance to infrastructure support and management to new projects management and cyber security.
IMPROIVING COLLECTIONS
The company has
shown
s t r o ng performance, despite difficult operating environment due to the covid pandemic. It grew its number of borrowers by 56% yoy to 4.11 million, branch network by 84% yoy to 1388 and employee base by 65% yoy to 14,213 as of Q1 FY2021.
It has been able to bring 98% of its centers with 100% employees back to work. Top priority is given on collections and connect with customers. New disbursements are made only to borrowers making on-time payments. Majority of customers have resumed repayments in June / July as the company recorded 83% of full/partial repayments in July. Its collection efficiency improved monthon-month despite localized lockdowns / restrictions from 74% in June to 76% in July 2020. It also has conservative provisioning policy to build adequate risk buffers in place.
Collections are currently done in cash during the center meeting. It has started cashless collections through UPI-based solutions, but it is in very early stage.
INSURANCE TIE-UPS
- the company collects contribution amounts from its customers during the weekly center/ kendra meetings. The scheme does not require any mandatory monthly/yearly deposits. According to Udayakumar, this initiative saves time and money for the clients, who would otherwise have had to travel to the nearest NPS aggregators. Continued investment in the scheme will help the customers earn a decent pension in the future. To ensure that they understand the product and its benefits completely before they decide to enrol, the company organizes training sessions for them.