MWR Collated v2

Financial Services Sector: Strategy
for the rural paradigm
Team: Captains of the Flying Ship

Xavier Institute of Management,
Bhubaneswar
Alok Nanda
| Shubhashree Jena
| Hitesh Asnani |
Case
approach
Industry analysis
Rural India
understanding
Issue identification
Strategy overview
Implementing
strategy
Conclusion
Porters 5 forces Analysis

Case Approach (ALOK)
Problem Statement
Methodology
Research
Industry Analysis (SHUBHASHREE)
Indian Financial Services
NBFC Industry Analysis
Growth Drivers (HITESH)
Company Analysis (HITESH)
Competitor Analysisustomer Segment Mapping
Rural India (SEEMA)
Literacy stat
Mobile Stat
Fin Services stat
Income/Expenditure stat
Equipment Usability growth
Issue Identification
Demand - Awareness, Accessibility, Affordability, Assurance, Appropriateness (ALOK)
Supply Default Ratio, Operational Bottlenecks, Regulatory Issues, Complex Product, Lack of Data Integrity
(HITESH)
Technology- Adaptability, Complexity, Affordability (SEEMA AND SHUBHASHREE)
Strategic Overview (ALOK)
To be removed after
finalization
Implementing Strategy
Product Design (ALOK)
Mobile App, Diversification, Bionic Model, Surrogate Data Availability, User Friendly, Loyalty Programs
Network Partners (HITESH)
Infrastructure, Coverage, Trust and Brand Image, RSETIs, Shakti Amma related Self-help group, poS,
Collaboration
Communication (SHUBHASHREE)
Channels, Cost effectiveness, No Language Barriers, Melas, Van campaigns, Social Media,
Technology & Innovation (SEEMA AND SHUBHASHREE)
Case
approach
Industry analysis
Rural India
Objective
understanding
Goals
Strategy overview
Implementing
strategy
Conclusion
Methodol
ogy
Case Approach
To transform MMFSL for new age Rural Financial Services on the basis of
technology and disruption.
To identify future growth drivers of NBFC in rural India
To emphasize on digitization and disruptive technology
To increase customer base and lending rate in rural
To enable MMFSL for the successful transition.
Research &
Analysis
Research
Deman
d
Identification
of Issues
Primary: Discussion and surveys

with villagers, Sarpanch and
Grampanchayat of the following
villages.
Rayachakradharpur (Gabkund)
Siula (Gobindpur)
Chhangaon
Dashabidharpur (Indipur)
Secondary: NBFC and banking
sector reports by CRISIL, BCG,
PwC, Digital India, Central govt.
Strategy &
Solution
Supply
Primary:
Discussion
and
surveys with employees
of
financial service companies
and dealers.
MMFSL
Magma
Cholamandalam
Shree Ram Vehicle Finance
Bharat
Motors
(
Vehicle
Dealer)
Secondary: Annual reports of
Roll Out Plan

Technolog
y
Primary:
Discussion
with
industry experts.
Mr. Amulya Rout, Professor,
XIMB
Mr.Ramasastry
Ambarish,
Founder
&
Managing
Partner, SRB2Group
Secondary:
Reports
and
research papers on disruptive
technology
and
digitization.
Case
approach
Industry analysis
Rural
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
India
understanding
Strategy overview
Implementing
strategy
Conclusion
PESTEL Analysis
Changes in interest rates: The immediate impact being on NBFCs earnings by
changing its net interest income (NII). Long term impact on NBFCs market
value of equity (MVE) or net worth.
Micro Unit Development and Refinance Agency to fund Microfinance Institutions,
helps in providing loans to small and vulnerable sections.
Foreign investment in the insurance and pension sectors in the automatic route up to
49 per cent.
Pradhan Mantri Jan Dhan Yojana: aims at promoting financial inclusion. National
Gross domestic
remained
above
30 per
cent of GDP.financial
And stood
at 32.45
E Rural
Financial savings
Inclusion
Plan to
provide
comprehensive
services
to
per centrural
in FY15.
excluded
households by 2015.
IMF estimates domestic savings to remain at similar strong levels until 2019.
Compared to other developed nations such as the US (1619 per cent), and emerging
countries like Brazil (17.3 per cent), Russia (27.5 per cent) and China (50 per
Increase in population: HNWI to be doubled by 2020. 940 people hold more than
S cent)
USD100 Million assets.
Theres a huge untapped potential at the Bottom of the Pyramid.
T Increase in usage of mobile phones, social media platforms, technologies
such as cloud computing
Inclusion of internet banking and core banking has made banking operations
easier and user friendly.
Theper
rising
incomes
are driving
the
services
across
income
E
As
Gartner,
the insurance
sector
is demand
estimatedfor
to financial
spend about
USD2.2
billion
on IT
brackets.
products
The financial Inclusion drives by RBI has expanded the target market to semi-urban
and rural areas.
The Investment corpus in Indian Insurance sector can rise to USD 1 trillion by
L GST law has got several implications on: Banks, NBFCs, Insurance Sector, Mutual
2025.
Funds and Stock Broking.
P
Case
approach
Industry analysis
Rural
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Porters 5 forces Analysis

Competitive Rivalry
Competitive rivalry between players is intense
in the industry.
Financial Services companies often compete
on the basis of offering lower financing rates,
higher deposit rates and investment services.
Substitute Products
Low threat of substitutes
Less number of substitutes
financial services
available
for
India
understanding
Threat of new entrants
regulatory norms prevent new
Strategy overview Stringent
entrants
Implementing
Customers prefer to invest their money with a
strategy
reputed
financial
services
company
offering
a
Conclusion
Bargaining
Power of Buyers
wide range
of services
Medium bargaining power of customers.
Although customers do not have much
bargaining power, they can easily switch to
another company.
Bargaining Power of Suppliers
Substit
ute
Product
s (Low)
Low bargaining power of suppliers as the

industry is highly regulated by RBI.
Threat
of new
entrant
s (Low)
Competit
ive
Rivalry
(High)
Bargain
ing
Power
of
Buyers
(Mediu
m)
Bargain
ing
Power
of
Supplie
rs
(Low)
Case
approach
Industry analysis
Rural
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
India
understanding
Strategy overview
Implementing
strategy
Conclusion
Indian NBFC Market Context

The contribution of NBFCs to the economy have grown from 8.4% in 2006 to 14% in
March, 2015.
In terms of financial assets, NBFCs have seen a compound annual growth rate (CAGR)
of 19% over the past few yearscomprising 13% of the total credit and expected to reach
nearly 18% by 201819.
With the growing amount of bad debt in the public sector banks, their appetite to lend
(especially in rural areas), is going to deteriorate further, which in turn, provides an
opportunity for NBFCs to expand.
The success of NBFCs is because of their better product lines, lower cost, wider and
effective reach, strong risk management capabilities to check and control bad
debts, and better understanding of their customer segments.
NBFCs have emerged as the largest net receiver of funds from the rest of the financial
system.
According to the Financial Stability Report, 2015, scheduled commercial banks
(SCBs)
have
the highest exposure to NBFCs at 1,927 billion INR, followed by asset
Revised
Asset
management
Classificationcompanies managing mutual funds (AMC-MFs) at 1,376 billion INR
and
insurance companies at 1,064 billion INR (as of September 2015).
Norms
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
India
understanding
Strategy overview
Implementing
strategy
Conclusion

Revision in MFI
Limits as per new
norms
Rural
Exposure of SCBs,
AMCs and
Insurance
Companies to
NBFCs (in billion
INR)
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
India
understanding
Strategy overview
Implementing
strategy
Conclusion

Indian Microfinance Sector Report, 2011
Fraction of Financing for New Investments
Rural
Financing Needs vs Financial Institutions

targeting them
Source: The MSME Banking Knowledge Guide, IFC Advisory

Services, 2010
Source: Enterprise Surveys (The

World Bank)
Number of
entities
Branch
network
Universal banks
Regional rural banks
Non-banking finance companies
NBFCs (non-deposit taking)
NBFCs (deposit taking)
89
56
12,139
11,913
226
102,820
17,524
-
Microfinance companies (registered

with RBI as NBFCs)
Urban cooperative banks
Scheduled UCBs
Non-scheduled UCBs
Rural cooperative banks
Long-term
Short-term
Registered money lenders
Post offices (take deposits)
48
1,584
50
1,534
93,550
717
92,833
19,627
1
155,000
Type of institution
Case
approach
Industry analysis
Rural
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
India
understanding
Strategy overview
Implementing
strategy
Conclusion
Odisha NBFC Market Context

Currently, there are 17 NBFCs registered under RBI in Odisha.
The registration request of 6 NBFCs has been cancelled by RBI.
And there are 3 NBFC-MFIs registered under RBI in Odisha
Financial Inclusion
Categorization
Add the excel sheet

containing the list
of NBFCs in
Appendix
Case
approach
Industry analysis
Rural
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
India
understanding
Strategy overview
Implementing
strategy
Conclusion
Factors contributing to growth in NBFC Sector

Current
in
India
Scenario
There is a huge latent credit demand in Indian economy.

Adding to that, there is a huge self-employed population that is not served by banks, due to
absence of/inadequate income proofs.
PSBs are under severe stress due to rising NPAs.
Therefore, they would not be in a state of lending in the medium term till their situation
improves.
This provides an opportunity for NBFCs.
Factors favouring growth of

NBFCs in India
Huge latent
credit need
in the
economy:
Self-employed,
MSME
High bad
debt levels
limits risk
appetite of
PSBs in
medium term.
Unique
nature of
credit
demand
makes it
difficult for
traditional
bank
lendingSelf-employed
without
adequate
income proof;
Digital
trends in
consumer
and MSME to
offer new
disruptive
opportunitie
s for
innovation
and
partnerships
.
Deepening
of wholesale
debt
markets to
provide
easier
access to
funds
Case
approach
Industry analysis
Growth in various sectors
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Strategy overview
Implementing
strategy
Conclusion
Source: CRISIL Retail Finance Housing

November 2015
Source: CRISIL Research, Cars & UV

February 2016
NBFC Retail AUM (in trillion INR)
New Government of India

Initiatives
Digital India
Smart cities and urbanization

Ease of doing business
Infrastructure development
Make in India and growth in
SMEs
Case
approach
Industry analysis
Rural
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
India
understanding
Strategy overview
Implementing
strategy
Conclusion
SWOT Analysis
Streng
ths
Mahindra Finance has an advantage of brand name of Mahindra & Mahindra Group.
It has a large asset base of Rs.5000 crores.
It has large distribution network with 350 branches all over the nation.
It has large financial base since its IPO was subscribed 26.88 times.
It is one among the leading companies in NBFCs.
The credit rating of this company is very high and it has CRISIL FAAA credit rating.
It has a very strong presence in India.
It has a vast portfolio of products that cater to the financial sector
Customers typically rebel against price increases by switching to competing products, but if
a company has pricing power, customers will continue usingMahindra finances
products and services.
Superior technology allowsMahindra Financeto better meet the needs of their
customers in ways that competitors cant imitate.
A strong supply chain helpsMahindra financeobtain the right resources from suppliers
and delivery the right product to customers in a timely manner.
Financial leverage allowsMahindra financeto use their balance sheet to expand their
business and increase their profits.
Lower costs lead to higher profits forMahindra finance. A low cost leader can undercut
rivals on price.
Itonly needs to target new customers in order to grow their business.
Case
approach
Industry analysis
Rural
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
India
understanding
Strategy overview
Implementing
strategy
Conclusion
SWOT Analysis
Weakn
ess
Mahindra Finance does not
advertise its products.

A tarnished reputation can hurtMahindra finances brand in the eyes of a consumer.
A lack of scale meansMahindra finances cost per unit of output is very high Increasing
volume, while maintain quality, would help reduce those costs.
Weak customer service hurtsMahindra finances reputation and causes customers to flee
to competitors, who are more respondent.
Bad acquisition can hurtMahindra financeby increasing their costs and reducing the value
of their combined businesses.
A weak brand meansMahindra financecant charge the same prices for goods and
services as their competitors, because consumers dont value the brand.
Mahindra Finance provides advisory service and they do not have share broking facility
which their competitors have.
Opportuni
ties
Fragmented markets provide many opportunities for Mahindra finance to expand and
increase market.
Leveraging the balance sheet allows Mahindra finance to quickly expand into other
markets.
Mahindra Finance has entered into mutual fund distribution which is growing as per Indian
market development.
Automobile sector in India is growing as foreign companies entering in India which is
useful for Mahindra Finance as it provides vehicle loans.
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
SWOT Analysis
Opportuni
ties
The online market offers Mahindra finance the ability to greatly expand their business.
Mahindra.
Greater innovation can help Mahindra finance to produce unique products and services
that meet.
New services help Mahindra finance to better meet their customers needs.
Rural India
New technology helps Mahindra finance to better meet their customers needs with new
understanding
and improved.
New products can help Mahindra finance to expand their business and diversity their
Strategy overview
Threats
customer base.
Implementing
strategy
The biggest threat for Mahindra Finance in the market is new entry of foreign nonConclusion
banking financial institutions.
In case of vehicle financing, the company has tough competition from large banks like
State Bank of India, ICICI etc.
A bad economy can hurt Mahindra finances business by decreasing the number of
potential.
The availability of substitute products hurts Mahindra finances ability to raise prices.
Consumers can change their tastes very quickly.
Politics can increase Mahindra finances risk factors, because governments can quickly
change.
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
India
understanding
Strategy overview
Implementing
strategy
Conclusion
MahindraAnalysis
Rural Housing Finance
Financial
Segment wise distribution
Credit growth across NBFCs in India
120.0%
100.0%
80.0%
60.0%
40.0%
Rural
20.0%
0.0%
Penetration of MMFSL in India (No.

of branches)
Book Value per Share
Others*
5.0%
14.0%
Pre-owned vehicles
13.0%
CV and
Construction Equip
22.0%
Cars
17.0%
Tractors
29.0%
Auto/ Utility
vehicles
FY-16
Growth in Revenue of
MMFSL
110
60
105
58
100
10
%
56 9%
54
95
52
90
50
48
85
80
Revenue
in Billions
46
FY-14 FY-15 FY-16
44
FY-14 FY-15 FY-16
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Mahindra Insurance Brokers Limited

Technological initiatives
taken by MIBL
MIBL has introduced an innovative Pay-As-You-Can digitally-enabled model, thatll
redefine the distribution of insurance solutions and drive insurance penetration in India.
Its a socially progressive initiative that will provide customers access to insurance
products, with the flexibility of paying premium based on their affordability.
Rural
India
It will enable any service provider with a large customer base, to offer affordable and
understanding
tailor-made insurance covers to their customers in a seamless manner.
Strategy overview
Itll enable any service provider to offer its customers a seamless, hassle-free and
Implementing
transparent buying and claims experience, facilitated by MIBLs wide network of 400+
strategy
locations across India, and its in-house Customer Contact Centre. According to the Internet
Conclusion
and Mobile Association of India (IMAI), around 63% of mobile users make various payments
using their mobile phones.
Pay-As-You-Can will tap into this rapidly growing segment.
In addition to simplifying the insurance buying process for the customer, it will also address
the key concern that has been limiting insurance penetration in India, with respect to making
long-term commitments towards premium payment.
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Mahindra Insurance Brokers Limited

Achievements of MIBL
MIBL has been appraised and rated at Maturity Level 3 of the People Capability Maturity
Model (People-CMM), thus becoming the first insurance broking company globally to achieve
this international benchmark.
MIBL is one ofIndia'sleading insurance brokers, received the Celent Model Insurer Asia Award
th
in
the
"Data
Mastery
&
Analytics"
category
at
the
5
Annual
Celent
Model
Insurer
Asia
Rural India
Awards ceremony held inSingaporeonMarch 11, 2015. MIBL won this prestigious accolade for
understanding
its 'FunDo T90' initiative which aims to align company strategy with team goals and
individual aspirations by way of an innovative and engaging gamification
Strategy overview
application.
Implementing
strategy
MIBL has been declared 'Broker of the Year' at 18th Asia Insurance Industry Awards 2014.
Conclusion
MIBL is one of the few insurance broking companies in India to have been awarded the
prestigiousISO 9001:2008 Certification for Quality Management Systems.
It is committed to providing value to its customers by understanding their insurance needs
and risk profile, and providing innovative, cost effective, customized solutions to
ensure total customer satisfaction.
Their role, in short, encompasses various activities right from risk profiling to claims
administration for customers. Our aim is to play a predominant role in the insurance broking
Case
approach
Industry analysis
Rural
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
India
understanding
Strategy overview
Implementing
strategy
Conclusion
Mahindra Rural Housing Finance

Current Scenario
Current shortage of housing units in India stands at 5.9 Crore units.
(Source: KPMGs Report on
Decoding House for All by 2022)
Shortage in rural areas: 4 Crore units

Shortage in urban areas: 1.9 Crore units
GoI has launched an aggressive programme to implement Housing for All.
Opportunity for MRHF: The large housing demand id unlikely to be met without adequate
housing finance assistance being extended and this represents an opportunity for MRHF.
Advantage to MRHF: Its uniquely placed to help addressing this social need because of
the reach and also the knowledge that it has acquired about the customer segment it
serves.
And itll continue to focus on the underserved rural customers and grow its business. Itll also
Govts
Growth
start focussing on the affordable
housing segment
in smaller
towns as well.
focus
Large
on this
segmen
t
unmet
demand
Engine
for
MRHF
Achievements of MRHF
MRHF won the Prestigious Porter Prize Award for Industry Architectural Shift.
It was also recognized by the Ross School of Business Positive Business Project . MRHF
was showcased in their handbook of positive business.
Case
approach
Industry analysis
Rural
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Details from Primary Research at MMFSL, (HO),

BBSR
Interview with MMFSL Officials
Mr. Vivek Bajpayee, ASM, MMFSL Head Office, Bhubaneswar.

Mr. Anuj Medha, DGM, MMFSL Head Office, Bhubaneswar.
Mr. Raj Kishore Panda, Tractors Division.
Mr Sashi Bhushan Das, Head of Commercial Vehicles Division, Odisha and Chattisgarh.
India
understanding
Mr. Debabrata Muduli, Head of Odisha and Chhattisgarh, MIBL.
Strategy overview
Mr. Debabrata Pati, ABM.
Implementing
Customer Experience
strategy
Conclusion
100% trust factor: 98% consumers are zero edge. They believe in having NO POLICY or
LOW POLICY i.e., out of all their engagements with consumers, it can be said they go for
1% Policy, 99% Confidence.
Flexibility: They pay visits to consumers residences in order to find out the reason for nonrepayment of loans within time. They understand their concern and accordingly give
appropriate extension for repayment of loans.
Mahindra Samriddhi Awards: Dealers cross-check productivity of farmers and farm

equipment purchased and awards are given to repeated buyers. And these farmers share
Case

BBSR
Customer Experience
approach
Industry analysis
Rural
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
India
understanding
Strategy overview
Implementing
strategy
Conclusion
Van Campaigns: They conduct van campaigns where they place their equipment on
display.
This year tentatively, they have a plan to conduct van campaigns in the period
between Sept16-oct16. And it is continues for 2 months at a stretch, once it starts.
Last year, they conducted it in June15, where in they had arranged for 2 vans,
which showed their products videos, and the distance covered per day was 80-100
Km on an average with an estimated budget of Rs. 5-6 Lakhs per Van.
Documents Required: The documents required to be submitted are much lesser as
compared to Public Sector Banks. It comprises of:
KYC (Know Your Customer)
Documents of the consumers land
Cheque
Bank Statement of 6 Months
Loan Repayment Documents of the tractors previously purchased by the consumer. (if
any)
Total Involvement: They keep a 360 degree View On Farmers Lifecycle.
Good Relationship with Customers: Some customers ask for Mahindra Finances help to
contact manufacturers, who were not responding to their multiple requests.
Incentives are often given in terms of quick delivery, approval, rate of interest.
Case
approach
Industry analysis
Rural
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis

BBSR
Sales
Need Analysis: Dealers Sales Team goes to the farmer in order to figure out the exact
requirements of the farmer. Hence, they take calculated steps after that, depending upon the
requirements of the farmers interviewed.
Sikhar Sammilan: Over here, branch-wise consumers are called and asked to give
feedback. Basing upon their feedback, they take adequate measures to improve upon their
existing services, that would eventually help them increase sales.
Operational Excellence
India
understanding
Strategy overview
Implementing
strategy
Conclusion
Mahindra Dealer Management System (MDMS): is not live yet. It is used basically to
maintain huge customer database, comprising of details of the like, number of enquiries,
details of land of the consumer, Coverage i.e., number of villages covered by salesmen in a
particular time interval as well as all customers profiles and referrals. The direct marketing
team updates the database. But Mahindra Kisan Mitra (MKM) is live.
Disaster Recovery: They have Disaster Recovery Facility in place, where in the dealers
maintain back-up of all the data, as MDMS is yet to be live.
Hand-held Devices: The sales team is given hand-held devices, which facilitates Real time
reporting. The Manager can track the money receipts cut by the executives, in the field, on a
real-time basis.
Lead Generation Tracking System: It facilitates assignment of Lead Scores by ABMS. The
Commercial Vehicle Team also uses a Mobile App.
Case

BBSR
Credit Collection
approach
Industry analysis
Rural
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
They collect loans given to consumers by sending the agents who collect them by paying
door-to-door visits from time to time. They take photographs, finger prints and Digital
Signatures.
Most of the leads come from their field visits (more and more transporters) and dealer
relationship in case of smaller vehicles.
Types of Loans
India
understanding
Strategy overview
Implementing
strategy
Conclusion
Ranking
1
2
3
4
Segment
Automotives
Tractor Loans
LMV
Commercial
Vehicles
Comments from industry experts

Interview with Mr. Sashi Bhusan Das, CV Head (Odisha
and Chattisgarh)
The three primary areas of consideration for MMFSL are:
Who Is Reaching Customers First?
Who Approves First?
Rate Of Interest=?
Case
approach
Industry analysis
Rural
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
India
understanding
Strategy overview
Implementing
strategy
Conclusion

BBSR
Farm equipment customers on an average are 350 per month out of which 170-180
per month are directed towards Mahindra Finance.
In Odisha, consumers from Western and Southern segment are much greater than
that of Coastal regions, in terms of revenues, as these are mostly Double Crop Areas
and Canal Regions . For example: Sundergarh, Bargarh, Berhampur, Jaipur, Jagatsinghpur
and Cuttack.
Currently, SME Financing Service is being provided by MMFSL in states like, West
Bengal, Andhra Pradesh and Chhatisgarh. They havent launched this facility in
Odisha as of now.
Theres no common platform available for comparison till now, where in the consumers
would find a one-stop location for comparing the existing NBFCs on different parameters.
The rate of interest is 1-2% higher than rest of the players. But in case of competition, they
Challenges
by them (Commercial
bridge this gapfaced
too.
Vehicle Sector)
Skill Development (Manpower)
Penetration Is Less (In Tractors Other Than Mahindra And Swaraj)
Last entrant in the market, so lesser known. When they entered the market, the
Commercial Vehicle Market was down. And therefore, the EMI
repayment capability was
reduced significantly. So, there was no proper penetration in markets. Only since last quarter
of last year, have they been able to make good sales.
Case
approach
Industry analysis
Rural
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
India
understanding
Strategy overview
Implementing
strategy
Conclusion

BBSR
Current
Scenario
Currently, around 150 Dealers are there in the Tractor Segment. For example:
End Users: 90% Farmers, 5% Contractors (Secured Income)

CSR Activities: They provide donations to disabled women.
% contribution of CV to MMFSL in both India and Odisha=15% (National and State figure)
Current CV target:
Nearly 150 Cr in Odisha
Nearly 500 Cr in India
Issue
s Language Barrier
Odia
Sarangi Motors (Sundergarh) (100 Vehicles /Month)

Paramount Automotives (Jaipur)
Shree Auto Services (Berhampur) (50+ Per Month)
Jk Automobiles (Puri)
Ramlinga Raj Automobile
as the GUI of the mobile app is not available in the local language i.e.,
Case
approach
Industry analysis
Rural
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
India
understanding
Strategy overview
Implementing
strategy
Conclusion

BBSR
Differentiating factors/Advantages:
Presence everywhere
Presence across product categories
Hub spoke model
Huge no of repeated buyers
Cross product funding opportunity is available
Conflict management is amicably done within the organization.
Internal sharing of data
USP- best service to dealer (close the deal on time) and customer
Market share in Odisha:

60-70% Market Share in Tractor Sector
Until August16: 45% Market Share in Automotive Sector
Current shift in vision:
Currently theres a shift in vision: Their strategy is mostly single focus on each and
every product after vertical implementation
Rural housing finance has to be launched here-will be very successful because many
customers are enquiring about it lately.
New CV branches to be opened at Sundergarh.
Target Segment for Commercial Vehicles Division: Retail Customers (1-5 Vehicles Or 17,8 Vehicles)
Number of branches: 18 Branches All Over Odisha (CV)
Case
approach
Industry analysis
Rural
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
India
understanding
Strategy overview
Implementing
strategy
Conclusion

BBSR
Comments from industry experts
Interview with Mr. Sashi Bhusan Das, CV Head (Odisha and Chattisgarh), Mr. Raj
Kishore Panda, Tractors Head (MMFSL, Head Office, Odisha) and Mr. Vivek Bajpayee, ASM.
MMFSL Head Office, Odisha
Our primary competitors are:
Magma
Cholamandlam
Hinduja Leyland
INDUSIND Bank
Sundaram Finance
Cholamandlam
HDFC Bank
ICICI Bank
Kotak Mahindra Bank
Axis Bank
Case
approach
Industry analysis
Rural
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
India
understanding
Strategy overview
Implementing
strategy
Conclusion
A comparative study of all MMFSL and its

competitors
Parameters
MMFSL
Core Competency
Financing for tractors Comprehensive

Personal
Financing,
financing for second financing
for
hand vehicles.
electronic goods
Key strengths
Large Network
Covers wide range of Loyalty
Good
coverage vehicles
Programmes
Organizing MELAs
across all sectors
across villages,
more visibility in
rural areas
Financials
Sriram
transport
Finance
EPS is very high

NPAs also the highest
Magma
Case
approach
Industry analysis
Rural
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
India
understanding
Strategy overview
Implementing
strategy
Conclusion
Magma Fincorp
Current
Scenario
Widespread
coverage
with
presence
across 1,900 Talukas and 2,900 Locations

Technological
innovation
led
faster
customer acquisition, portfolio servicing

and effective cross-sell
Deep Rurban Insight led underwriting
and flexible payment options
Financials of Magma
Fincorp
Growth
Strategy
Focus on more
direct & connector sourcing;
with almost 45% targeted from Tier 3 towns

based rurban SENP customer; at Rs.15 Lakh
average ticket size
Focus more on Home loans and increase its
share significantly, within MHF and overall
Leverage tech-tools to quickly and simply
underwrite and issue policies
Product Portfolio
Case
approach
Industry analysis
Rural
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Details from Primary Research at Magma

Fincorp
Sales
&
Customer
Experience
Introducing new schemes from time to time

If 12-18 months of proper payments is observed, the customers are approached for issue of
other loan product according to their requirements, under Sampark Customer Scheme
Call centre to provide real time support for complaints /queries
Cash collection at customer location, on spot money receipts, instant reporting of
collections to central database
Digitizati
on
Daily Journey Plan and Visit Calendar enabled in tablets
India
understanding
Issue identification Automation in workplace. Electronic transfer of loan documents from point of sale.
Tabs are provided to field officers
Strategy overview
Electronic transfer of loan documents from point of sale
Implementing
strategy
Operational
Credit
Conclusion
Excellence
Collection
Past portfolio based terminal

20 contracts per month per branch
One branch in 75 Km radius
losses as key indicator for
Asset gradation as per customer profile
developing
Early
Warning
Simplified credit screens
Indicators (EWI)
Electronic transfer of loan documents from point of Automation in workplace
Tabs are provided to on-field
sale
Use of data analytics for customized cross sell &
agents
External
up sell offering
credit
databases
External credit databases embedded in BI/sales
embedded in BI/sales interfaces
Case
approach
Industry analysis
Rural
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
India
understanding
Strategy overview
Implementing
strategy
Conclusion
Shriram Vehicle Finance

yield
pre-owned
CV
financing
segment
Construction
Equipment
Over 1.35 mn customers

Large
network
of
879
Tie
up
with
over
500
Private
Financiers
19,125
Employees
including
11,624 Field officers

Market Capitalization of ~ Rs. 280
Total Asset under Manufacturing
FII holding of 53.10%
748 billion
AUM
Passenger
Vehicles
Tractor
Financing
Auto-mall
Rs. 350 billion
275 billion
NA
Improving
road
infrastructure
Increasing
policy
thrust on
agriculture
Access to
ready
consumer
base of
used-CVs
Branch
offices and 787 rural centres
billion
Product
Portfolio
Leading player in organized high
Rs. 300 billion
Infra spends
in 11th
5-year plan
Industry Potential Commercial

Vehicles
Case
approach
Industry analysis
Rural
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
India
understanding
Strategy overview
Implementing
strategy
Conclusion
Shriram Vehicle Finance

Sales
&
Experience
Customer
Increase in penetration into rural and urban centres. Flexible repayment Ability
Build partnerships with private financiers in the unorganized market to leverage their local
knowhow to enhance market share
Digitizatio
n Introduced Shriram Automalls a dedicated platform for trading of pre-owned trucks at a
fair value
Extensive IT training and development of product executives
Operational
Efficiency
Economies of scale - incremental cost of new products is low. Opex to AUM low at 1.8%
Introduction of top-up products like finance for tyres, working capital and engine
replacement
Credit
Collection
Substituted formal credit evaluation tools, such as IT returns and bank statements, with
personal understanding of the customers proposed business model
Relationship Based Recovery Model: Compulsory monthly visits, Managing large cash
collections
Case
approach
Industry analysis
Rural India
understanding
Issue
Digital
Scenario
Financial
Scenario
Mapping of
Customer
Segments
identification
Strategy overview
Implementing
strategy
Conclusion
Rural India Digital Scenario

The penetration of mobile phone in rural India has increased from 22 per cent to 38 per
cent in the last four years.
Mobile internet Users : Rural vs Urban

(Fig. in Millions)
Marketers
Initiatives like
cue
eWallet/mWallet and other

easier
payment
gateways,
designed
specifically for rural markets, will facilitate
penetration of mobile phones
400
350
In Tier 2, Tier 3 cities of India the

consumption of mobile video content is
much higher than those from urban India.
300
250
Vision 2020
200
Axis Title
The number of web users in India will see a

two-fold rise at 730 million by 2020 against
350 million
150
100
50
0
41061
41426
41548
Urban Rural
Axis Title
41609
41699
41791
Trend Till now
42156
42522
75 per cent of new Internet users in India

will
come
from
rural
areas.
An
overwhelming majority (75 per cent) of
new users will consume data in local
Source :
languages
ET
Case
approach
Industry analysis
Rural India
understanding
Issue
Digital
Scenario
Financial
Scenario
Mapping of
Customer
Segments
identification
Strategy overview
Implementing
strategy
Conclusion
Rural India Financial Scenario

Risks from Banks
side
Risks from
Borrowers side
Lending to the agriculture

sector is inherently risky in
view of the monsoon
condition and future prices,
which are beyond the
control of the farmer.
Going to the. bank branches

for opening an account/
applying for loans leads to
lost income for farmers i.e.
small farmers cant afford to
lose income for banking
Increasing
number
overdue and defaulter
Hence they turn to money

lenders
of
Wilful default and overdues are mounting in

number of states, including
some
co-operative
progressive
states
like
Maharashtra and Gujarat
By writing off agricultural

loans
and
providing
subsidies out of the state
exchequer, some of the
Need to expedite the loan

process
N.B. : As said by Mr.
AmulyaDhan Rout (CRISIL
officer)
Distribution of households by land category in rural india
42
33
13
10
3
Case
approach
Industry analysis
Rural India
understanding
Issue
Digital
Scenario
Financial
Scenario
Mapping of
Customer
Segments
identification
Strategy overview
Implementing
strategy
Conclusion
Mapping of customer segments in Rural

Regions
First time buyers
Farmers with small landholdings (<4 acres) (Tractor buyer)

First time buyer with prior relevant experience (taxi/truck/machine
driver/operators)
Self employed non professional (SENP)

Self employed customer with informal income sources (Home/Car
buyer)
Small & medium entrepreneurs

Small factory owner/contractor, trader/shop owner with working
capital needs
(SME/LAP customer)
Small fleet operator (taxi/truck/equipment buyer)
Limited banking / credit history

Customer with informal income sources and low eligibility for bank
loans
Customers with no established credit track record
Customers with limited banking transactions
Case
approach
Industry analysis
Rural India
understanding
Issue
Digital
Scenario
Financial
Scenario
Mapping of
Customer
Segments
identification
Strategy overview
Implementing
strategy
Conclusion
Mapping of customer segments in Rural

Regions
Case
approach
Industry analysis
Rural India
understanding
Issue
identification
Demand side
issues
Supply side
issues
Technology
based issues
Strategy
overview
Implementing
strategy
Conclusion
Demand Side Issues 6 As

Demand
Side
Awareness
Availability
Accessibility
Affordability
Though Kerala has highest rural literacy

of 83.28%, its female rural literacy ratio
is 51%.
Bihar and Jharkhand have the lowest
rural literacy of 39% and female rural
literacy of 19%
Pathanamthitta and Kottayam distrcits of
Kerala have highest rural literacy of 88%
with female rural literacy being 50%+.
The followings are the least literate
districts:
Alirajpur (MP , 25.4%)
Dakshin Bastar (Chattisgarh, 28.7%)
Bijapur (Chattisgarh, 30%)
Jhabua (MP, 30.7%)
Keypoints
Koraput (Odisha, 35%)
Orissa
Haryana
Gujarat
West Bengal
Punjab
Nagaland
Uttarakhand
Manipur
Tamil Nadu
Maharashtra
Chandigarh
Mizoram
Sikkim
Himachal Pradesh
Tripura
Kerala
0%
10%
20%
30%
Rural Literate %
Assurance
Appropriaten
ess
40%
50%
60%
70%
Rural Literate(Female) %
Source: Census, 2011 Top 16 Rural Literate State
80%
90%
Literacy is a major factor of awareness. Low

literacy in the rural area is a crucial issue for
Awareness.
Case
approach
Industry analysis
Rural India
understanding
Issue
identification
Demand side
issues
Supply side
issues
Technology
based issues

Demand
Side
Awareness
Availability
Accessibility
Region
South
Western
Northern
Eastern
NorthEastern
India
Strategy
overview
Implementing
strategy
Conclusion
Inclusix
Score
High (>
55)
Above
Average
Below
Average
Low (< 0)
Affordability
Source: CRISIL Inclusix, Vol-III, Jun,2015
Assurance
Appropriaten
ess
Branch
Credit
Deposit
Penetrati Penetrati Penetrati Inclusix
Score
on
on
on
69.7
54.1
49
43.1
88.7
37.3
32.8
35.1
83.1
60.5
59.1
44.8
76
48.2
44
40.2
41.2
52.4
35.8
45.7
45.9
60.3
39.7
50.1
Keypoint
s
North-Eastern and Eastern India has the
lowest financial inclusion, South India being
the highest.
Case
approach
Industry analysis
Rural India
understanding
Issue
identification
Demand side
issues
Supply side
issues
Technology
based issues
Strategy
overview
Implementing
strategy
Conclusion

Demand
Side
Awareness
Availability
Accessibilit
y
Affordability
Enquiry
Inaccessible medium for
loan enquiry.
Language barrier
Complexity of information
Inflexible timing
Loss of work and time
Application
Document heavy
Identity Proof and income
proof
Language barrier
Complexity of information
Inflexible timing
Physical Process
Loan
Disbursement
Cash collection from Head

Office or Branch Office
Risk of theft or misguided
Loss of work
Inflexible timing
Travel Expense
Assurance
Appropriaten
ess
Repayment
Keeping track of due time

Loss of work
Inflexible timing
Travel Expense
Case
approach
Industry analysis
Rural India
understanding
Issue
identification
Demand side
issues
Supply side
issues
Technology
based issues
Strategy
overview
Implementing
strategy
Conclusion

Demand
Side
Awareness
Availability
Accessibility
Affordability
Assurance
Appropriaten
ess
Income class (average annual per

capita)
< 10000
31.39%
10001-16000
25.14%
16001-27000
23.83%
27001 and above
19.63%
Total
100
Keypoints
90% of the rural population spends less
than Rs.1500 per capita per month
Case
approach
Industry analysis
Rural India
understanding
Issue
identification
Demand side
issues
Supply side
issues
Technology
based issues
Strategy
overview
Implementing
strategy
Conclusion

Demand
Side
Awareness
Assuran
ce
Mistrust
Availability
Lack of
Assuran
ce
Affordability
Assurance
Appropriateness:
Long
and
Comple
x
process
Unknow
n
Agents
Accessibility
Appropriaten
ess
No categorization of products,
Personal vehicle loans usually
overlapped with tractor loans and
utility Vehicle loans.
Chit
Fund
Scam
Interest rates are not fixed and

vary with each category &
customer specific segment which
creates uncertainty .
No tracking of customer data; it
causes problem in retention of
existing customers
No customer specific financial
solutions; one for all solutions will
not be helpful.
Case
approach
Industry analysis
Rural India
understanding
Issue
identification
Demand side
issues
Supply side
issues
Technology
based issues
Strategy
overview
Implementing
strategy
Conclusion
Supply Side Issues 6 As

Supply Side
Operational
Bottlenecks
Regulatory Issues
Lack of Data
Integrity
Complexity of
Products
Operational
Bottlenecks
The gross NPA percentage of retail focused NBFCs (excluding captive financiers) have increased to 4.3 per cent in
December 2015 as compared to 4.1 per cent in June 2015.
Regulatory Issues
NBFCs cannot offer interest rates higher than the ceiling rate prescribed by RBI from time to time. The present ceiling is
11%.
The NBFCs are allowed to accept public deposits for a minimum period of 12 months and maximum period of 60 months.
Lack of Data Integrity

The deposits with NBFCs are not insured; The repayment of deposits by NBFCs is not guaranteed by RBI
NBFCs having assets size of Rs. 500 cr. and above but not accepting public deposits are required to submit Quarterly
Return
Complexity of
Products
Past portfolio based terminal losses as key indicator for developing Early Warning Indicators (EWI)
External credit databases embedded in BI/sales interfaces
Case
approach
Industry analysis
Rural India
understanding
Issue
identification
Demand side
issues
Supply side
issues
Technology
based issues
Strategy
overview
Implementing
strategy
Conclusion
Supply Side Issues

Key recommendations of the Mor Committee to resolve the
supply side issues
Consolidation of NBFCs into 2 categories (i) Core
Investment Companies, and (ii) other NBFCs
Availability of benefits such as tax benefits, bank limits or
Complexit priority sector status to continue based on pro-rata asset
y
basis
Credit
Needs
Systematic addressing of wholesale funding constraints,

Access to refinance schemes
Clear framework for investors to participate in debt
market issuances of NBFC; Low capitalisation
requirements for foreign owned NBFCs
Risk
Measure
Mandatory adoption of core banking and disclosure of

stress test
NPA recognition and provisioning norms (including for
standard assets) to be specified based on level of each
asset class
Transition
to Banks
Mandatory adoption of core banking and disclosure of

stress test
Specific barriers preventing smooth transition of NBFCs
into Wholesale/ National bank to be removed
Regulatory
Government
Reforms:
Initiatives
by
Case
approach
Industry analysis
Rural India
understanding
Issue
identification
Demand side
issues
Supply side
issues
Technology
based issues
Strategy
overview
Implementing
strategy
Conclusion
Technology based issues-from consumer

survey
Case
approach
Industry analysis
Rural India
understanding
Strategy
overview
Implementing
strategy
Conclusion
Overview of Strategy
Case
approach
Industry analysis
Rural India
understanding
Strategy overview
Implementing
strategy
Conclusion
Implementation Strategy
Product
Product
Design
Design
45
Network
partners
Communic Technology
and
ation
Strategy Digitization
Case
approach
Industry analysis
Rural India
understanding
Strategy overview
Implementing
strategy
Implementation Strategy Product Design

Mobile App
Diversification
Surrogate data
syncing
User Friendly
Loyalty
Programs
Product
Design
Network
Partners
Communicatio
n
Technology &
Innovation
Conclusion
46
Biometric and face detection

based Login for Rural People
Benefits:
No need to remember
Password
Easy Access
No language barrier
Simple & Easy Access

Benefits:
User Friendly
Entire process by mobile
Low data usage
Tracking and payment

Benefits:
Track of due date
Mobile Payment
Instant Receipt
Case
approach
Industry analysis
Rural India
understanding
Strategy overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology &
Innovation
Conclusion

Mobile App
Diversificatio
n
Surrogate data
syncing
User Friendly
Focus on other low value-high volume loan schemes.
Gold Loan (Retail NBFC):

For marriages of daughter or special occasions
High under-penetrated market in rural area
Expected CAGR 40-45%
Health Care Loan:

For operations, transplants and other major treatments in hospitals.
This will also increase ethics and brand image.
Consumer Durables Financing:

Easy financing for high cost consumer durables.
47
Loyalty
Programs
Case
approach
Industry analysis
Rural India
understanding
Strategy overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology &
Innovation
Conclusion

Mobile App
Diversification
Surrogate
data syncing
JAM + UPI + Biometrics +

Social Media
J : Jandhan Yojna ensures each rural people having bank account

A: Aadhar has the persons Biometric stamp
M: This will ensure easy internet access by rural people.
UPI: Easy access and single link to bank account with better safety.
J
Jandhan
Yojnaand
ensures
Biometrics: Overcoming
language
barrier
remembering
password.
Social Media: Better credit
48
User Friendly
Loyalty
Programs
each rural people having

score predictability to avoid default
bank account
rate.
In future the UPI
will use Aadhaar biometric as the second factor authentication.
This is possible with even basic smartphones (sub-Rs 10000) now having
fingerprint scanners.
A
This means that in future someone can download the app of MMFSL lending, use
M
Aadhaar for KYC.
The application for loan can solely
UPI be done by Mobile App and the payment with
the virtual address of the MMFSL App.
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
India
understanding
Issue
identification

Mobile App
Diversification
Surrogate data
syncing
Demand
Side
Complex
password
based
Logi
n
Supply
Side
Fingerprint
based
Rural
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology &
49
IFSC Code,
Account No
Transacti
on
Income Proof Credit

Score
User Friendly
Loyalty
Programs
UPI, Virtual
address
Aadhar &
Mobile data
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology &
50

Mobile App
Diversification
Surrogate data
syncing
User Friendly
Loyalty
Programs
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
overview
Implementing
strategy
Network Partners
Partnership with M&M
Dealers
1 Identification of
the M&M dealers
in rural segment
Product
Design
Network
Partners
Communicatio
n
Technology &
51
where there is no
MMFSL branch
Use this data to

retain the
8 customers and
encourage repeat
transactions
Strategy
2Mapping of areas
Customers who
take loans from
MMFSL will get
0.25% discount
on interest
Track M&M
3
customer
transactions and
segment them
Design Products
4 as per historical
data and
customer specific
Awareness can be
6 created among
the region
through
promotions &
Melas
Customers should
5be communicated
about easy loans
available at
MMFSL
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology &
Network Partners
Partnerships can create compelling
customer propositions with
embedded lending
OEMs
Retailers, e-market places
Partners
Direct cash contribution
Most feasible form; Also Adds to
CSR brand
Favourable Results:
About 30% of M&M and Swaraj
tractors are currently financed by
Mahindra Finance, while on the
industry side, its share could be
around 15-16%.
Recent Partnerships:
MMFSL, a leading player in the rural
and semi-urban market, and Maruti
Udyog Ltd (MUL), launched their
alliance by organizing a series of
roadshows across the state of
Kerala.
Benefits for Partnership Network

Reach
Infrastructu
re
Trust
Targeted access to large groups; Understanding of

customer base
Monitor, evaluate pdt. adoption
Presence of physical infra. across locations to
enable sales, issue resolution, claim settlement
Established network partner with high credibility
Minimize fraud/corruption
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicati
on
Technology &
53
Communication
We have focussed upon two types of channels for improvising upon communication.
Mobile Channel
Through Dealers
http://
Mobile Channel:
Push Strategy:
www.wegusinfotech.com/Promotional-SMS-Service.html
https://www.twilio.com/sms/pricing/in
SMSs can be sent as reminders for timely repayment of loans, so as to lower the default ratio.
SMSs can also be sent informing about the newer product categories that have been
launched or will be launched in the near future, along with a few features, which serves as a
teaser for attracting the customers.
SMSs can be sent informing about the roll-out of some latest schemes by MMFSL for the
Promotional
SMS:
Transactional
SMS:
customers.
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicati
on
Technology &
54
Communication
Mobile Channel:
Pull Strategy:
Customers can give missed call to a toll-free number in order to register their complaints (if
any). The MMFSL officials would then revert back to them so as to know in detail about the
issue that they are facing and at the same time, they can suggest suitable solutions to them.
Customers can also send answers to some questions asked by the company, in the form of a
winning contest. The cost per SMS sent by the customer in India has been tabulated below
COST ANALYSIS
Through dealers, also reminders can be
sent for timely repayment of loans. But
that would be more time consuming.
Therefore, usage of mobile channels would
be more time saving and cost effective
medium, as compared to dealers.
Bulk Messaging (last slideDescription

Price/msg
twilio)
INDIA Outbound SMS - Aircel

INDIA Outbound SMS - Airtel
INDIA Outbound SMS - BSNL
INDIA Outbound SMS - Etisalat DB
Telecom
INDIA Outbound SMS - Idea Cellular
INDIA Outbound SMS - Loop Mobile
INDIA Outbound SMS - MTNL
INDIA Outbound SMS - MTS
INDIA Outbound SMS - Other
INDIA Outbound SMS - Ping Mobile
INDIA Outbound SMS - Reliance
INDIA Outbound SMS - S Tel
INDIA Outbound SMS - Tata
DoCoMo
INDIA Outbound SMS - Tata indicom
INDIA Outbound SMS - Uninor
INDIA Outbound SMS - Videocon
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicati
on
Technology &
55
Communication
No Language Barrier:
The mobile app designed for use by customers, in order to get a feel of the latest products,
services and schemes of MMFSL, can be made available in Odia.
This would help eliminate the existing language barrier and would definitely help in improving
convenience of access by the customers.
As a result, they would eventually take more interest in gathering knowledge about MMFSLs
products and services, as compared to their competitors products and services.
Mobile Van
Campaigns:
They can have mobile van campaigns, in which they can display their equipment and
hence convert the potential customers in leads. This would eventually help in increasing
customer reach as well as profitability.
Melas:
Similar in concept with Driver Melas, the tractor manufacturing division along with the
farm equipment manufacturing division can conduct Melas at specific regions all over
Odisha, every quarter, so as to be able to offer quick service at lower cost.
Customers who avail this loyalty programme of Mahindra would be entitled to goodies and
freebies like, dashboard mementos, room fresheners, branded bottles and T-shirts.
This would help in a way that there are high chances that theyll mention about the same to
people they know and therefore, through Word of Mouth Communication, the message can be
spread further.
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicati
on
Technology &
56
Communication
Melas
Identification of
1 places where
Melas will be
conducted
Preparation of
2
detailed schedule
ahead of the
Melas
schedule prior to
the Mela
8 Redeem reward
4Deciding on the
points and
receive loyalty
rewards.
Agenda of the
Mela
7Customers who
download the app

will receive a
promo code
3Circulation of the
Awareness can be
6 created among
them about the
proposed mobile
app
Customers would
5 come to the
specific
workshops to
avail the service
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicati
on
Technology &
57
Communication
Van Campaigns
3Awareness Drive
2Set up camps
On-spot
registration
Document
Verification and
real-time
5
scanning and
updation in
account in mobile
app
Route
Identification
9Then move to the

next location as
decided for van
campaigns
Identification of
8 interested
male/female
candidates
through
awareness drive
6
Loan
disbursement
7 within 5 days of
applying, from
nearest branch of
MMFSL
Application for
loan filled up by
customers
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicati
on
Technology &
58
Social Media Marketing

Facebook Remarketing:
User clicks on Facebook ad or boosted post.
User lands on MMFSLs landing page. A tracking cookie is implanted on
the browser.
Users usually bounce off the landing page or forget about the ad.
The tracking cookie ensures that the same ad is posted again and again
on any website the user visits.
This will definitely help in capturing the attention of the consumers and
will increase chances of converting them to regular customers.
Facebook Website Custom Audience:
Target Segment/ Focus Audience: Existing Customer Base. The idea
is to create Whatsapp groups of the existing customer base, which can
serve as a common platform for discussion between them (which is
lacking now)
Then, the link of the landing page of MMFSL can be shared in these
Whatsapp groups.
Facebook has come up with the concept of Website Custom
Audiences(WCA).
It helps in targeting ads to the people who have already visited the
website before.
If this WCA feature is enabled in Facebook, then it gives a tracking code
which can be placed in MMFSLs website.
And, each time a person visits the website while being logged in to FB,
this tracking code automatically tags them as their website audience
(without the people having to enter their details like name, e-mail id etc).
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology
Technology based solutions

We have primarily focussed on 5 levers, as shown below, basing upon which we have identified
the feasible solutions for each of the categories, one by one:
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology
Customer Experience
Customers these days, wish for getting omni-channel and seamless experience in all the
services they opt for.
Improving the quality of service provided to the existing customer base as well as acquiring
new customers should be one of the prime focus for MMFSL now.
In the following slides, two technology enabled solutions aimed at improving the customer
experience have been discussed i.e.,
Biometrics
Digitization
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology
61
Biometrics
Biometrics can be incorporated into citizen identity documents.
Customers can be made to use biometrics while logging in to their accounts.
This will help in cross-verifying the credentials of the person. So, this helps in enhancing
security of a wide range of transaction types by preventing people to present duplicate
identity documents.
Biometrics are the most unique and the most difficult to be decoded. They are not subject to
counterfeiting and forgery, unlike hard bound documents like birth certificates etc.
Biometrics is currently being viewed as the most convenient option because it helps in
overcoming problems associated with illiteracy, language barriers and the lack of
How
it works?
government
issued credentials.
1
Capture
finger
prints
when
customer enrols
initially or when
accessing
accounts, funds
etc.
System checks
for duplicates to
reduce
confusion
and
eliminate fraud.
Access is granted only

if
the
scanned
biometric matches the
information stored in
the individuals secure
identity file.
System automatically
flags
suspicious
activity
and
generates
management
reports.
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Biometrics
Usage of biometrics for microfinance comes with several benefits. These benefits have been
enlisted below:
Theres significant increase in base of potential new customers.
It opens new doors for affordable implementation of microfinance initiatives.
It helps in further accentuating the security and authenticity of financial
transactions
It improves the operational simplicity to a great extent.
It serves as a much needed solution for customers facing problems of literacy and
language barriers.
The customers find it as a more convenient option than to carry cards or tokens.
Challenges
Rural
to remember
passwords
any and
further.
Therefore, workers
it helps in
Most of
the customers
customers dont
underhave
consideration
would
be farmers
construction
the process
hassle-free.
whose making
fingers would
be damaged
and worn.
Extended Solution
A fingerprint-based authentication solution, which is sophisticated enough to image
and authenticate these difficult fingerprints, has to be kept in place in order to avoid
discrepancies
in the
process.
The
various
types
of
biometrics implementation are:
Strategy overview
Biometrics Single Node
Face Recognition
Implementing
Cost
Fingerprint
strategy
Face
Low
Palm
Scanning
or
Hand
Geometry
Product
Recognition
Iris/retina scanning
Design
Finger Print
Low
Thermal Image
Network
Partners
Voice Print
Signature
Low
On
the
basis
of
one
parameter
i.e.,
Single
Node
Communicatio
Signature Recognition
Cost, which would include hardwareRecognition
cost, we
n
62
Technology
filter out the remaining options to arrive at the

following 3 alternatives.
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology
63
Biometrics
Comparison of SWOT Analysis of different types of
biometrics:
Biometri Strength
Weakness
cs
Opportuniti Threats
es
Easy
Awkward lighting in General
Face
Recognitio Fast
the image can affect
One among the authentication
n
Least Expensive attempts
Its also subject to
Methods
spoofing attempts
Reliability: Changes
in
lighting
and
photo angles may
affect the reliability
of data.
Validity of matching
Finger Print Inexpensive
Latent prints, cuts and Law
Higher
level
of dirt can dismantle the Enforcement
accuracy (Masking
security
image of the finger Corporate
the finger to avoid
Uniqueness
print.
Databases
the
mismatch;
Ease of Capture
Long
Ability to force a
standing
false mismatch)
reputation
Signature Inexpensive
Can be affected by Industrial
Data Accuracy and
physical
condition
Reliability
(Variable
ARecognitio
further leap in incorporating biometrics
could
be voice or
identification with speech
recognition.
emotional
state
traitthat
data;
nA new authentication method using
voice biometrics
can be implemented
canVulnerable
identify a
to replay attacks)
customer while he or she is conversing with a customer service representative
over the
phone.
The new system helps in cutting off the cumbersome process of verifying a customers
identity through ID numbers and personal details; this reduces friction for customers and
allows representatives to provide necessary help faster.
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology
64
Biometrics Implementation- Critical Success

Factors
CSFs
Issues
Possible Solutions Importance
Technology Factors
Ability to provide a Biometrics

that High
flexible but robust
promote flexibility to
solution
accommodate
Capability
for
sufficient
tolerance
gaining
a
levels
and
future
competitive
enhancements.
(A
advantage
roadmap
can
be
Integrating with the
prepared for evolving
existing
Legacy
biometric solution for
systems
future needs)
Availability
of Adopt a collaborative
support
IT
approach through an
infrastructure
accepted model in
preserving
existing
privacy and improving
security measures.
Evaluate the risks in
applications
using
thorough testing.
Develop
an
operational
model
that
integrates
biometrics
with
legacy systems.
Develop
tools
for
evaluating
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
overview
Implementing
strategy

Factors
CSFs
Issues
Possible Solutions
Importance
Monetary Factors
Management and
Leadership
Factors
Strategy
Product
Design
Network
Partners
Communicatio
n
Technology
65
Measuring
the Produce
Financial Moderate
cost effectiveness
Recommendations
and
in relation to its
Requirements including a
tangible/intangible
comprehensive assessment of
benefits.
the project, with a cost/benefit
Ability to provide
analysis.
long
term Evaluate Interoperability and
sustainability.
Process Efficiency
The
long
term
sustainability
of
the
biometric
solution.
Unsatisfactory
level
of
performance
for
FIs with certain
biometrics.
Other FIs may not
implement similar
solutions,
hence
the efforts will be
isolated
and
deprived of being
the market leader.
To encourage and be a role Moderate

model for challenges needing a
top-down lead.
Discourage the silo mentally
culture within the organization
and promote innovations and
constructive approach to new
security solutions.
Promote
comprehensive
strategies to embrace new
technological solutions which
will
address
security
requirements.
Maintain
a
transparently
manageable process so that
the users are not kept in the
dark
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology
66

Factors
CSFs
Issues
Possible Solutions Importance
Legal and Ethical Factors
Legal
issues Establish control to High
concerning
the
ensure
that
the
protection of user
solution is adhered to
privacy and rights.
and
theres
Reluctance of users
compliance to all laid
to accept biometrics
down
laws
and
as a trust worthy
regulations.
and reliable solution. Ensuring the safety of
information
and
security standards.
Promote
new
authentication
techniques that will
not displace , but only
complement
traditional
techniques.
Promote positive and
secure culture and
awareness
programmes
to
welcome biometrics
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology
67
Digitization
The vision statement of Payment and Settlement Systems Vision Document, 2018 is as given
below:
Building best of class payment and settlement systems for a less-cash India through
responsive regulation, robust infrastructure, effective supervision and customer centricity
The estimated annual growth in the value of bank-card payments in emerging markets from
2015 through 2025 is estimated to be almost double the rate in mature markets (11% versus
6%).
India and China are expected to lead the boom with annual growth in noncash payment
values of 17% and 11%, respectively.
Therefore, digitization in the value chain can serve as a potential solution in this type of
scenario, where-in a digital first, digital everywhere mindset, led by senior leadership
and focused on the always-connected consumer is expected to work with tremendous results.
For digitization to take off at an exponential pace, there has to be a successful digital strategy
in place. The ingredients of this strategy could be:
Ultimate focus on digital channels.
Understanding that digitization can both enhance as well as replace delivery models.
Technology focussed on finding, serving and engaging customers.
Improving Customer Experiences.
Partnerships will provide the context or application for frictionless transactions.
Strategy must generate productivity, profitability and efficiency.
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Digitization
Benefits of having a digital strategy in place:
An integrated Digital Strategy can extract significant value via:
Innovation as Service Differentiator
Transformation to Online Offerings
Partnering with the Digital Ecosystem

Evolution to Online and Digital Channels
Improved Decision Making & Analytics
Operating Efficiency in Front & Back Office

A cross functional Digital Team has to be in place
Rural India
And lastly, there has to be an action plan for each of the strategic initiatives being
understanding
undertaken.
Benefits of
Issue
Online Dashboard:
Alerts:
Alerts
can
be
sent
dashboard
identification
Omni-channel
on
a
real-time
basis,
Demand side
and seamless
whenever
the
balance
in
the
Supply side
Common Platform: It can
customer
Coverage:
Real
account of a customer falls serve as a common platform

Technology
experience
time reporting of below the threshold value.
based
for accessing and giving Increase in
details
of
areas
Strategy overview
productivity
suggestions for modification Increase in
covered
by
the
Implementing
of
newer
and
more
efficiency
salespeople.
strategy
Increase in
innovative
product
designs
Project
Progress
brand value
Product
Complaints/Grievances
Reports:
Real
time
Increase in
Design
Tracker:
Real
time
profitability
generation of project
Network
Improvement in
reporting
of
complaints
Partners
progress reports and
QOS.
Communicatio process
issued by customers, along Improved
flow
n
with specifically mentioning
Product
diagrams
on
weekly,
Technology
Innovation
the details of the problem
68
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology
69
Digitization
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology
70
Digitization
The implementation of digitization in the value chain has 4 major implications:
Reduce
Eliminate
Raise
Create
Reduce
Eliminate
Fraud
Geographical
Barriers
Disaggregation
Raise
Create
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
India
understanding
Issue
identification
Digitization
Reduce
Eliminate
Raise
Create
Reduce
Delays
Rural
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology
71
Eliminate
Fraud
Complexity
Geographical
Barriers
Physical Presence
Disaggregatio
n
Inaccessibility
Costly Propositions
Need for Cash
Documentation
Raise
Create
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
India
understanding
Issue
identification
Digitization
Reduce
Eliminate
Raise
Create
Raise
Reduce
Eliminate
Create
Rural
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology
72
Fraud
Delays
Complexity
Geographical
Barriers
Physical Presence
Disaggregatio
n
Costly Propositions
Inaccessibility
Need for Cash

Documentation
Transparency
Reach
Convenience
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
India
understanding
Issue
identification
Digitization
Reduce
Eliminate
Raise
Create
Reduce
Eliminate
Raise
Rural
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology
73
Create
Acceptance Infrastructure
Fraud
Delays
Complexity
Geographical
Barriers
Physical Presence
Disaggregation
Costly Propositions
Inaccessibility
Need for Cash

Documentation
Transparency
Reach
Convenience
Rich data insights

Credit Profiles
Interoperability
Interconnected Services
Real-time systems
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology
74
Sales
For any business, the sales team is ultimately responsible to draw in more customers.
A large part of new business comes from Direct Selling Agents and at the same time, a
large number of NBFCs are investing in hiring the right kind of sales talent to be able to find
their own customers.
"The NBFC plans to hire young graduates from business schools and reputed colleges to deal
with customers as the firm is focusing on increasing direct acquisition to complement the
business contributed by DSAs", Vimal Bhandari, managing director and chief executive
officer at IndoStar Capital, said.
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology
75
Sales force automation

A cloud-based field force automation solution can be kept in place. Use of this would help
increase worker productivity to nearly 100% and would also help in eliminating fraud.
It would serve as an end-to-end mobility solution using voice, GPRS and SMS for the sales
and collection processes of the company
For each step in the work-flow, starting from lead capture, follow-up, document collection
to feasibility reporting, the field agent can enter the information in the relevant form on his
basic feature phone.
Each form can be filled either through text inputs or voice inputs, allowing agents to select
their most convenient form of interacting with a mobile.
If the agent chooses the voice input option, the system will engage him in an interactive
dialogue in his native language to complete the desired transaction (this can be useful for
MMFSL since they are employing local people for last mile service delivery)
The agent can also easily transmit statutory customer documentation by merely taking a
picture with his phone. The back-end module immediately collates these text and voice in one
powerful web application, giving business managers unprecedented visibility to field
operations.
Using this application, managers approve service requests in matter of minutes and
communicate these decisions to the field agents, so they not only have visibility into
real time operations, but can confidently analyse their business knowing that the underlying
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology
76
Sales
Operational Excellence
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology
Operational excellence
4 levers used for Operational Excellence in an NBFC :
.
Ensure operations are in sync with the

frontline to achieve high levels of customer
retention
Front line staff should be centered on customer
interaction, not on low value administrative work
To increase productivity, all star banks
differentiate service by client segment
Offering a streamlined product portfolio, that is

regularly reviewed & trimmed, to focus on core
competency
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology
78
Credit and Collection

Credit and Collection
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology
UPI based Loan Repayment

What is UPI?
UPI is a payment system that
allows money transfer between
any two bank accounts by
using a smartphone.
UPI allows a customer to pay
directly from a bank account to
different merchants, both
online and offline, without the
hassle of typing credit card
details, IFSC code, or net
banking/wallet passwords.
Why not Wallet?

To enjoy the benefits of mobile
banking using bank apps, users
are required to know IFSC code,
bank account number and a lot
of other details.
Its Easy!
Its as easy as
downloading
an
.
app
Currently 19 banks
in India have the
UPI app
In Short: Cheap,
Secure, Reliable
mobile first, inter
operable/ open
source,
instantaneous
settlement, both pull
and Its
push.hassle
free!
Its safe!
It is safe as the customers
only share a virtual
address and provide no
other sensitive information
WHY
UPI?
Its
Exhaustive!
This creates a lot of friction .Also,

UPI will offer a facility to
All kinds of transactions
since people are wary about
identify a bank customer
e.g. Merchant
sharing personal banking details,
with an email-like virtual
payments, remittances,
bank apps havent been very
address. A customer can
bill payments etc can
popular. UPI will bypass all this by
have multiple virtual
be processed via UPI
making transactions easy without
addresses for multiple
http://indianexpress.com/article/technology/tech-news-technology/upi-vs-mobilethe need for personal details.
accounts in various banks
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology
80
UPI based Loan Repayment
Link
Create
1. UPI linked during

Application
Proces
s
Each month, a request will be
generated from MMFSL for the
2. Request from MMFSL for repayment on
repayment at customers Virtual
each Due date
address directed at UPI. Once
customer authenticates, the
payment will be automatically
3. Customer Authenticates
Benefit
made.
s
Better Security: UPI brings in the
concept of virtual payment address.
4. Payment Made
This means that there is no transfer of
bank credentials.
5. Receipt sent to Customer
In future the UPI will use Aadhar
Mobile
biometric as the second factor
Repayment
authentication.
Process Flow
With UPI both the payment and
Credit Scoring The three pronged strategy :
First Access conducts

credit assessment
based
on various
parameters
Mobile phone
records:
Phone calls
Texts
Bill pay
Airtime top-up
Mobile money
Data Collection Type:

Demographic
Geographic
Financial
Regulatory
compliance
Predictive
power
Ability to reach
a diverse and
widespread
audience
Integration with
traditional
sources of data
Ethics
Beliefs
Intelligen
ce
Personalit
y
Character
Business
skills
Case
approach
Industry analysis
Indian
Financial
Services
NBFC Market
Analysis
Growth
Drivers
Company
Analysis
Competitor
Analysis
Rural
India
understanding
Issue
identification
Demand side
Supply side
Technology
based
Strategy
overview
Implementing
strategy
Product
Design
Network
Partners
Communicatio
n
Technology
82
Effective Pricing
For accentuating the benefits availed by the existing customer base, primarily comprising of
repeat customers, the company can appropriately incorporate Effective Pricing
mechanism, into the system.
For instance, a rating or score can be assigned to the current set of customers, depending
upon their tendency towards going for the companys products and services. The assignment
of scores would mostly vary according to the following parameters i.e., number of repeat
purchases, number of times the customer has defaulted to repay the loan, number of leads
generated by the customer, by serving as opinion leaders etc.
Basing upon this score, the customer who has a higher score shall enjoy the benefits of the
effective pricing mechanism. So, it tends to become a more customer-centric approach,
with primary focus on benefits based on customization.
APPENDIX
Mapping of customer segments
Case Approach
Industry Analysis
Indian Financial
Services
NBFC Industry Analysis
Company Analysis
Competitor Analysis
Customer Segment
Mapping
Rural India
Issue Identification
Strategic Overview
Implementing
Strategy

MWR Collated v2

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

MWR Collated v2

Uploaded by

Copyright:

Available Formats

Financial Services Sector: Strategy

for the rural paradigm

Team: Captains of the Flying Ship

Porters 5 forces Analysis

Primary: Discussion and surveys

Roll Out Plan

Porters 5 forces Analysis

Bargaining Power of Suppliers

Low bargaining power of suppliers as the

Indian NBFC Market Context

Indian NBFC Market Context

Indian NBFC Market Context

Fraction of Financing for New Investments

Financing Needs vs Financial Institutions

Source: The MSME Banking Knowledge Guide, IFC Advisory

Source: Enterprise Surveys (The

Microfinance companies (registered

Odisha NBFC Market Context

Add the excel sheet

Factors contributing to growth in NBFC Sector

There is a huge latent credit demand in Indian economy.

Factors favouring growth of

Growth in various sectors

Source: CRISIL Retail Finance Housing

Source: CRISIL Research, Cars & UV

New Government of India

Smart cities and urbanization

advertise its products.

Credit growth across NBFCs in India

Penetration of MMFSL in India (No.

Book Value per Share

FY-14 FY-15 FY-16

Mahindra Insurance Brokers Limited

Mahindra Insurance Brokers Limited

Mahindra Rural Housing Finance

(Source: KPMGs Report on

Decoding House for All by 2022)

Shortage in rural areas: 4 Crore units

Details from Primary Research at MMFSL, (HO),

Interview with MMFSL Officials

Mr. Vivek Bajpayee, ASM, MMFSL Head Office, Bhubaneswar.

Mahindra Samriddhi Awards: Dealers cross-check productivity of farmers and farm

Details from Primary Research at MMFSL, (HO),

Details from Primary Research at MMFSL, (HO),

Details from Primary Research at MMFSL, (HO),

Comments from industry experts

Details from Primary Research at MMFSL, (HO),

Skill Development (Manpower)

Penetration Is Less (In Tractors Other Than Mahindra And Swaraj)

Details from Primary Research at MMFSL, (HO),

End Users: 90% Farmers, 5% Contractors (Secured Income)

Sarangi Motors (Sundergarh) (100 Vehicles /Month)

Details from Primary Research at MMFSL, (HO),

Market share in Odisha:

Details from Primary Research at MMFSL, (HO),

A comparative study of all MMFSL and its

Financing for tractors Comprehensive

EPS is very high

across 1,900 Talukas and 2,900 Locations

customer acquisition, portfolio servicing

direct & connector sourcing;

with almost 45% targeted from Tier 3 towns

Details from Primary Research at Magma