Where do India’s credit-lending facilities stand today after GST and Covid?
In 2022, India remitted ₹2.93 lakh crore of microfinance loans, with borrowers from agriculture and allied activities, housing and personal finance, food, and education.
Customers come from different strata of the underbanked community now. And as the head of Retail and SME policy-making of a leading private bank says, “They want quick responses and intelligent credit selling approaches from banks to use the products the way they want.”
So banks leverage segmentation to divide their diverse customer base into smaller related cohorts based on their income profiles, life stages, and technology skills. This helps them to fine-tune their credit policies with more specific customer data.
After RBI’s revised policy formulation, lenders have excellent scope for providing personalized products, developing best-in-class Business Rule Engines (BRE), simplifying and accelerating processes, and creating multiple customer touchpoints based on marketing and debt servicing inputs.
With the provisions of the Union Budget 2023, banks and microfinance institutions see a hope to benefit from large capital outlays and guaranteed loans to MSMEs.
But, easy loans also pose several challenges in credit management and debt recovery.
For example, India’s microfinance industry had Rs.33,000 crore of bad loans in June 2022 despite better collections. It had 57% outstanding for SHGs and 43% credit gaps due to poor credit management. Repayment also dropped to 95% post-Covid, with 98% of accounts under moratorium.
In this scenario, how game-changing will it be if a sales executive can send the right promotional content to the right audience, select the appropriate customer acquisition channel, and uberize debt servicing with digital enablers?
That’s what a next-gen banking sales solution brings to the table!
Manage Your Credit And Debt Servicing In A Phygital Way
India’s banking and financial services look to include the underprivileged population with a healthy mix of brick-and-mortar and digital presence. In this Phygital model, sales teams strive to simplify customer journeys and use cutting-edge data-driven technologies for the following benefits
Data-enabled Delinquency Management for 35% more sales rep productivity
Post-Covid, Pre Delinquency Management (PDM) campaigns run largely on intelligent digital channels, allowing banks to use MLT-based risk segmentation on 100+ variables. They strategize customer engagement through multiple channels and personalize treatment for different customer segments. Additionally, they use the ‘3R strategy’ to nudge the right customers at the right time through the right channels to improve recovery.
Similarly, Machine Learning drives the Early Delinquency Management (EDM) phase to build multivariate models based on evolving risk segmentation, design multi-channel digital campaigns, and maximize reach via cognitive analytics and AI-optimized efficiencies.
Banks use banking CRM software to offer customized solutions, scale multi-linguistic engagement, aggregate customer opportunities on urgency, proximity, and business potential, and assign leads to field agents with over 90% accuracy.
25% more customer acquisition in 78% less settlement time
The right match of risk and channel is essential to reduce the settlement time by 80% and enhance cost savings by 50%.
Contactless debt management offers a 20% book coverage and helps acquire and monitor customers through Smart voice calls/chatbots, personalized SMS and email, mobile notifications, and WhatsApp messaging.
Banks can also encourage do-it-yourself (DIY) credit monitoring to increase repayment by 50%. A sales engagement platform for banks allows easy login with 2-step authentication, gives a unified view of all delinquent accounts, delivers bureau score, report, and score simulator, and ensures real-time credit repayment with multiple payment options.
It segregates pre-due-date and post-due-date collections, nudges sales teams for 800% higher chances of activity scheduling, and automatically allocates customers to the closest agents to maximize collection efficiency. It also helps attend hot leads 2X faster to enhance the likelihood of conversion by 30%.
Satellite-based intelligence for a mobile-first customer engagement
Banks now leverage ML-based algorithms to design credit policy frameworks. A satellite-driven database informs them about average sowed, rainfall, soil moisture, and irrigation to make an intelligent rural portfolio. They can also segment risks based on harvest output, crop prices, weather data, and agronomic data.
Satellite-based intelligence also helps banks to execute the 3R engagement strategy, improving resolution by 15-20% and covering portfolio by 80%.
CRM software for banks provides information through mobile applications to better execute opportunity scoring and analyze customer potential. It monitors custom modules and sets rules of engagement. By installing base analytics, it shows the propensity to buy and track cross-selling opportunities through the life cycles of leads.
Uberizing debt servicing through Digital Enablers for timely repayments
Efficient debt management relies on three steps — need, solution, and refinement. Banks need to improve credit monitoring, connect to the nearest customer faster, and monitor face times with leads.
For that. they must locate customers through geo-tagging, auto-assign pickups to FOS, and measure the intensity of customer and channel visits.
A sales acceleration platform for banks helps them in this process. It triggers supervisors to analyze login status, dispositions, and distance traveled to increase efficiency by 15-20%.
On the flip, digital enablers allow 100% cashless debit management through auto-debit, net banking, NEFT RTGS, UPI, and BillDesk. They ensure 95%+ payment collection and accelerate the sales pipeline by 3X.
Next-generation credit management and debt servicing modalities drive continuous innovation through multidimensional credit filters, contact stability, and the ability to engage. They simplify data acquisition via satellite imagery and increase collection efficiency through DIY bureau scoring.
Market-leading bank CRM software empowers sales teams to conduct multi-lingual campaigns, nurture hot leads for maximum conversions, and offer data-driven customer services to reduce TAT by 75%. It utilizes AI and ML-based algorithms to cross-validate user data, reduce lead dropping by 54%, and decrease loan disbursement time by 64%.
Such a one-stop sales management solution provides a real-time view of sales rep productivity and reduces bad debts through customer engagements and nudges.