Leveraging technology to provide hassle-free Financial Services: Mr. Ajeet Kumar Singh, MD and Co-Founder, SAVE Solutions Pvt. Ltd.
- How does your company leverage technology to reach and serve rural communities for microfinance?
Microfinance has transformed a lot from being a pen-and-paper process to a digital mode. Technology has played a pivotal role in transforming the lending landscape within the industry, especially the rural areas.
Technical Innovations: There are multiple technical innovations and integrations available which has made lending an easy task with the reduction in the turnaround time, better risk management, and implementation of all the internal checks through software.
SAVE’s Processes: SAVE has embraced the technology transformation and digitized the complete process from client onboarding, loan disbursement, loan collection, utilization, and more. The loan origination system, the loan management system, and the collection system are completely digitized.
Reduction of TAT: The technical intervention has not just reduced the TAT for servicing the loan but also improved the risk management for the organization. All-important checks related to the credit history of a client; the authenticity of any KYC document can be verified through the click of a button.
Loan Management System: SAVE has used web-based applications that are being used for product management, loan management, transaction management, client management, user management, Credit and Risk Management, and Reports and Analytics.
Loan Origination Modules: Varied technological applications are being used for lending under the JLG and Individual Lending Concept. This helps us in reducing TAT and better risk management.
The extensive use of such technological-based features is helping enable error-free, faster, and convenient loan disbursement and collection, thus helping reach women entrepreneurs who have dreamt of running their enterprises.
- What efforts does your company undertake to promote digital financial inclusion in rural regions?
SAVE group has spearheaded the financial inclusion of people living in rural areas. Under the umbrella of the parent company (Save Solutions Pvt. Ltd.) various initiatives related to savings, insurance, and pension help improve the landscape of financial inclusion of the rural populace thus providing them with social security.
Awareness in CGT: During the Compulsory Group Training (CGT), the staff members provide awareness to the clients about the cashless processes offered for loan disbursement and collection which makes it feasible for the rural communities to avail the loans.
Digital Sourcing and Collection: SAVE lays special emphasis on ensuring that customers get a chance to become a part of the formalized credit system, by digitally sourcing them, and also offering platforms for digital collection. During this process, a token is generated and that particular token number can be shown at any CSP, of SAVE or other agencies, where the customer can easily deposit their EMIs. Customer is also encouraged to make deposits directly to the bank via QR code or make digital payments.
Training on Digital Signature: SAVE’s processes have mandated all the customers learn how to sign digitally so that their signatures are legible and can be easily incorporated into the expected digital transformations in the future.
- How does your company address issues related to connectivity or infrastructure limitations in these areas?
SAVE Solutions has created a large network of Customer Service Points across 28 states and 6 union territories. This network has not only helped the organization support initiatives towards last mile banking for varied PSU and Grameen Banks but has also helped the group leverage the reach to offer varied financial products in these territories.
Village Surveys: SAVE’s staff conducts village surveys to reach women who are otherwise unable to avail of loans due to limitations of connectivity and reach. Based on the eligibility, these women are linked to the system, to help them participate in cashless processes.
Bridging the Gap: SAVE Microfinance’s tie-up with SAVE CSPs, and other merchant CSPs helps reach out to people residing in rural areas facing issues of connectivity.
Offline Data Syncing: Technical support mechanisms used by SAVE also work in areas with limited or no access to the internet. Both sourcing and collection can be performed in offline mode, wherever there are issues with a network, and the data gets synced to the system, upon reaching areas with connectivity.
- Have you implemented any technology-based tools or platforms to enhance financial literacy among rural clients?
Sourcing Application: SAVE Microfinance’s clients are sourced with the help of digital applications that process voter ID verification and name-matching verification. During this process, the organization tries to help the clients gain more literacy about their finances.
(FUTURE) Customer Application: SAVE’s Customer onboarding App helps customers view their loan history, payment history, available offers, new products, digital payment modes available, and the grievance channels available to the client. This helps create more awareness about their income, expenses, EMI options, and details for their loan possibilities. This application also has more details about financial terminology which helps provide better understanding to the clients.
- What innovative technologies do you foresee integrating into your microfinance services for rural areas in the near future?
Credit underwriting and the KYCs are an integral part of microfinance services. Technical interventions around these areas will play a pivotal role.
Artificial Intelligence: The integration of AI-based KYC verification will ensure onboarding of verified clients. Services to understand the financial consumption pattern of clients will help in making the credit decisions robust. This will help target specific clients for new products enabling SAVE to diversify their products along with reducing the risk.
QR-Based CMS: Introduction of Static as well as Dynamic QR-Based collection module systems on the client’s loan card, will help the rural communities to easily repay their dues.
Payment Gateway Integration: It is also expected that the integration of payment gateways along with BBPS within the organizations that cater to microfinance is bound to enhance customer experience while making the process of repayment extremely easy for the rural, and far-reached customers. With e-signing, the authentication of clients has also improved significantly.
- Is there anything else you would like to emphasize regarding the role and impact of technology in your company’s approach to rural microfinance?
CSP Network: SAVE’s unique business model has leveraged its Customer Service Points network spread across the country to cater to the varied banking and financial needs of rural and semi-rural India. The robust network has established how the company’s policies and systems are defined to support the needs of communities until the last mile, particularly in the microfinance sector.
Reduced Risk: The organization as well as the customers are entirely open to making 100% cashless transactions for disbursement as well as collection. This has reduced the risk of cash in transit and also made it extremely safe for the staff members to provide services in the rural regions.
