The NBFC Company Avtar Instalments Private Limited has been providing secured loans to SME and Mid Corporates since 2012 across industries. The company has grown its lending book over a period of time nearly 15% driven by a deep understanding of target customer segments, use of technology in a smaller way and differentiated business model to reach the credit-starved segments.
Despite concerns surrounding the NBFC sectors, we believe such NBFCs with robust business models, strong liquidity mechanism, governance and risk management mechanism standards are well positioned to take the advantage of the market opportunity.
Hence, the management of the company has built and implemented a balanced strategy that meets table –stakes across essential, core capabilities and differentiates across high value- adding capabilities.
So, in the line of our strategy, we have formulated a segmentation business model, defining target customer segments, product proposition, distributed channels and geographical locations for business operations. This enterprise business model has helped us to focus on the right market opportunities for lending that enabled us differentiation and are likely to generate success.
Thus, our Company has created a niche for ourselves over a period of time through a deep understanding of needs of our customer segments and ensuring last mile delivery of products and services. We have also adopted the non- standard pricing models for product lines, in line with the customer profile and inherent risk of lending. We have been reaching out to Tier-2, Tier-3 and Tier-4 markets distributing our customised loan products across several customer touch points.
Similarly, we have built a connected customer personalised channel experience that provides an Omni –channel , seamless 24×7 sales and service interaction, with entrenched engagement programme to attract and retain customers, while maximising lifetime value. Thus, we have embarked on new and better ways to engage with the customers.
We have been using technology based tools in a smaller way to transform underwriting and decision making, thereby helping us to drive competitive advantage and robust risk management. We have adopted a customer focused, data driven and relationship based approach in our company to maximise recovery and minimum write offs.
But in recent times ,the management of the company has been started working in a better way towards leveraging technology advances for improved efficiency and enhanced experience to customise credit assessment models and optimise business processes, thereby reducing the time to market and helping improve customer experience. The company has also been planning to invest in data analytics and artificial intelligence to build robust relationship with our target customers segments.
By incorporating marketing analytics, the company will rapidly, dynamically at massive scale, mine huge amounts of data, encompassing customer transactions, demographics and interactions as well as with data from external sources. In addition to identifying lucrative micro segments and probability of purchase, the company will be able to communicate effectively with customers and price loan products better to minimise customers’ drop-outs .Over time, such tools will also help the company to capitalise on opportunities for up sale, cross-sale and re-sale, thereby boosting the customer lifetime value. Additionally, in the long run the company will be able to use micro segmentation to identify customers potentially to pay a premium as well as to optimise sales and distribution strategy.The company always maintains focus on building tight information security controls to ensure insulation from rising threats. The company has developed an efficient strong risk detection, management and mitigation mechanisms which help us survive in regulatory dynamics, market uncertainties and ensure us are well capitalised to operate.
Thus, the company has built robust corporate governance models to maintain stakeholders trust and to improve resilience to survive in challenging times. Also, the management of the company has designed the organisation structure aligning with the enterprise goals to ensure optimal delivery that allows for sustained growth and continuous innovation.The company has been tying up with multiple alternative lenders as Co-lending arrangements with digital platforms and commercial banks as well, will help us adding targeted customer base.Thus, the company has been ensuring enhanced governance through a proactive, robust and agile risk management model.
