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Small finance banks: Banking on digital tech to remain forward of curve

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One of many greatest challenges for small finance banks (SFBs) from a tech viewpoint is the shortage of an automation course of and the corresponding want for guide intervention. This makes the deployment of an built-in engagement platform important to such entities. Such an answer breaks down organisational silos, permitting for a centralised view of buyer profiles and sounder communication throughout channels. It additionally helps in simpler assortment of EMIs and installments from micro banking and retail loanees.

Because of this Ujjivan Small Finance Financial institution went for digital onboarding of shoppers, tying up with MoEngage for the aim. However the change wasn’t straightforward since most of its prospects got here from unserved and underserved segments, with some residing in distant areas. So, the financial institution partnered with just a few names within the telecom area whose shops could possibly be utilized by prospects to repay their loans, with the identical being mirrored of their accounts in real-time.

Sriram Srinivasan, head of digital banking, Ujjivan Financial institution, explains: “Previous to implementing the shopper engagement resolution, most of our buyer communications have been achieved manually. After MoEngage’s implementation, the financial institution was in a position to save on further manpower which was routed to enterprise operations, optimising response time and driving income progress.”

Other than bettering operational effectivity and useful resource utilisation, the advertising and marketing groups on the financial institution have been in a position to cut back their dependency on database groups because the buyer and marketing campaign information was available on MoEngage. “The groups additionally discovered that utilizing push notification as a communication channel was economical, thus contributing to an environment friendly ROI and including to the underside line,” he says.

Ujjivan Small Finance Financial institution onboarded roughly 2,00,000 distinctive prospects for digital funds, with greater than Rs 123 crore of EMIs collected in simply 5 months and the conversion price from digital channels rising from 2% to a whopping 18%. The martech stack and engagement options have additionally helped the financial institution keep forward of competitors.

Yash Reddy, chief enterprise officer, MoEngage, says, “Owing to the seamless product and use case fitment on Ujjivan Small Finance Financial institution’s aspect, there have been no main implementation points. The truth is, the issues of the infosec staff have been handled instantly to keep away from any hiccups within the integration processes. Finish-to-end help from the shopper servicing groups is what enabled a seamless integration.”

Financial institution onboarded approx. 2,00,000 distinctive prospects for digital funds Conversion price from such channels up from 2% to 18% The options have additionally helped it keep forward of rivals

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