Bring­ing so­cial into the lend­ing process

Govind Sankara­narayanan, COO, Re­tail Busi­ness & Hous­ing Fi­nance at Tata Cap­i­tal, re­veals the prod­uct in­no­va­tions and dig­i­tal foun­da­tions at Tata Cap­i­tal:

Customer Click - - TATA CAPITAL - Me­hul Dani

Me­hul Dani: What are the growth in­di­ca­tors of your com­pany in 2016-17? How was 2016-17 dif­fer­ent from the pre­vi­ous year in terms of busi­ness, chal­lenges and op­por­tu­ni­ties?

Govind Sankara­narayanan: We have fo­cused on high po­ten­tial ar­eas to grow our busi­ness. Af­ford­able hous­ing, as a seg­ment, has been grow­ing rapidly and our share of home loans to this seg­ment have been in line with this. We have also be­gun to fo­cus on loans for more niche needs like travel, med­i­cal, wed­dings, etc. Dig­i­tal as an area for ac­quir­ing busi­ness has also been a fo­cus area and will con­tinue to be so in the years to come. We are cur­rently grow­ing at a y/y rate of 25-30%. Our loan book for FY 201617, on the re­tail and hous­ing fi­nance front, was close to `29,000 crore.

What new prod­ucts were of­fered by your com­pany in 2016-17 and how has been the re­sponse? How do you pro­pose to bring in prod­uct in­no­va­tions in 2017-18? What are the mar­ket­ing, brand­ing and pro­mo­tional ac­tiv­i­ties planned for dif­fer­ent prod­ucts in 2017-18?

Most re­cently, we launched ‘my­loan’ - a first-of-its kind mo­bile app by Tata Cap­i­tal to ex­tend its ex­ist­ing per­sonal loan of­fer­ing to the emerg­ing younger and mo­bile savvy au­di­ence. The app en­ables the user to check his/her loan eli­gi­bil­ity and ap­ply for a loan seam­lessly us­ing only a mo­bile de­vice. The app also al­lows ex­ist­ing cus­tomers to view their loan sta­tus and de­tails. These prod­ucts con­sti­tute around 5-10% of our per­sonal loan port­fo­lio and are grow­ing at a rate com­men­su­rate with the rest of our prod­ucts.

One of our more re­cent ini­tia­tives in the cur­rent FY which was launched un­der Tata Cap­i­tal’s ‘Do Right’ brand ini­tia­tive is ‘Salaam Loans’ - a unique and spe­cial prod­uct, crafted to ex­tend loans to de­serv­ing in­di­vid­u­als who may not have ac­cess to or­ga­nized credit. ‘Salaam Loans’ is a firstof-a-kind ini­tia­tive which puts the power of loan ap­proval into the hands of peo­ple, calling the public at large to ‘salaam’ the sto­ries of such de­serv­ing in­di­vid­u­als. Peo­ple can visit to nom­i­nate, share and like/salaam the sto­ries of such in­di­vid­u­als, thereby ef­fect­ing so­cial change.

The ini­tia­tive aims to salute the un­break­able spirit of those peo­ple who brave se­vere cir­cum­stances and yet dare to dream big and pur­sue their dreams with re­lent­less de­ter­mi­na­tion. Un­se­cured per­sonal loans are of­fered across a range of pro­files, but still many in­di­vid­u­als are un­able to get ac­cess to fi­nance on ac­count of rea­sons such as in­suf­fi­cient credit his­tory, in­ad­e­quate / ir­reg­u­lar in­come and im­proper doc­u­men­ta­tion.

Un­der the Salaam Loans ini­tia­tive, in­di­vid­u­als would be able to up­load their own story. Sto­ries of these in­di­vid­u­als will be show­cased across the coun­try via so­cial and dig­i­tal me­dia. The role of the public is crit­i­cal in this ini­tia­tive’. Once the story is ap­proved by the ‘salaams’ of the public, it will be pro­cessed by Tata Cap­i­tal. We have given the power of ap­proval to the public to help ful­fill their dreams with this unique prod­uct. Salaam loans are per­sonal loans, of­fered up to `1 lakh, at heav­ily dis­counted rates.

What changes have you in­tro­duced on in­for­ma­tion tech­nol­ogy front in last one year? How are you us­ing so­cial me­dia?

Tata Cap­i­tal is strongly fo­cused on em­brac­ing the power of dig­i­tal and build­ing su­pe­rior ex­pe­ri­ences for the dig­i­tal cus­tomer. Our so­cial jour­ney be­gan in 2011, by carv­ing out a sep­a­rate dig­i­tal port­fo­lio in 2014 and sub­se­quently the dig­i­tal busi­ness as a sep­a­rate ver­ti­cal was formed in April 2016.

The com­pany’s dig­i­tal strat­egy is built on a few key pil­lars. First, we are un­der­tak­ing dig­i­tal ini­tia­tives to ex­pand our reach and growth across ge­ogra­phies and cus­tomer seg­ments to achieve top-line growth. Sec­ond, we are look­ing at ways to con­vert our ex­ist­ing off­line fi­nan­cial prod­ucts into dig­i­tal-friendly prod­ucts. Third, we are try­ing to cre­ate new busi­ness mod­els around dig­i­tal – prod­ucts and propo­si­tions that are purely dig­i­tal. Fourth, we are at­tempt­ing to de­code the ex­ten­sive cus­tomer data avail­able and use it for in­tel­li­gent an­a­lyt­ics and in­sights across the busi­ness func­tions. Fifth is en­hanc­ing cus­tomer ex­pe­ri­ences through dig­i­tal.

From a so­cial me­dia stand­point, Tata Cap­i­tal cur­rently em­ploys a so­cial lis­ten­ing tool to as­sess trends, cus­tomer be­hav­ior, etc, from so­cial me­dia. The sys­tem helps us to reach out to cus­tomers in need of our fi­nan­cial prod­ucts as well as iden­tify gaps, if any, at a macro level for de­vel­op­ing new prod­ucts.

Govind Sankara­narayanan is strongly fo­cused on em­brac­ing the power of dig­i­tal and build­ing su­pe­rior ex­pe­ri­ences for the cus­tomers

What is the de­fault rate in re­pay­ment of loans of your com­pany in 2016-17?

Our NPA rate is cur­rently among the best in the in­dus­try.

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