In today’s fast-paced world, technology has become an essential part of almost every industry, including the financial sector. Non-Banking Financial Companies (NBFCs) are no exception. They have embraced technology to enhance their services, streamline processes, and provide better experiences to their customers. Let’s explore how NBFCs are leveraging technology to shape the future of finance.
Tech-Powered Customer Experience
The days of lengthy paperwork and in-person visits to financial institutions are long gone. NBFCs are revolutionizing the customer experience through digital platforms. They’ve streamlined loan application processes by introducing online forms and document submissions.
This means you can apply for a loan or credit from the comfort of your home. With user-friendly interfaces and instant verification tools, NBFCs are making financial transactions smoother than ever. Take, for example, L&T’s PLANET app, which manages loans conveniently and offers personalized lending services and customer support.
Credit Scoring and Risk Assessment
In the past, obtaining credit was a cumbersome process, often requiring extensive paperwork and time-consuming verification. According to Abhay Bhutada, Poonawalla Fincorp’s MD, NBFCs can streamline credit evaluations using Artificial Intelligence (AI) and Machine Learning (ML) models.
These models incorporate diverse alternative data sources like tax invoices, device data, and transactions. This empowers them to assess creditworthiness, gain insights into delinquency risk, and proactively manage at-risk accounts.
Mobile Apps for Financial Management
NBFCs are not just about lending; they also empower customers to manage their finances effectively. Many NBFCs now offer mobile apps that provide insights into spending habits, budgeting tools, and investment options.
These apps serve as personal financial advisors, helping users make sound financial decisions in real time. From tracking expenses to setting financial goals, these apps are transforming how people perceive and manage their money.
Cybersecurity Measures
The soaring integration of technology necessitates an equal commitment to cybersecurity. Recognizing this, NBFCs are diligently investing in state-of-the-art cybersecurity measures to safeguard sensitive customer data and financial information.
As the volume of online transactions surges, ensuring the security of digital platforms is paramount, ensuring that customers can engage with these platforms without compromising their personal information.
Efficient Backend Operations
The tech-driven evolution isn’t limited to customer-facing aspects. As articulated by Abhay Bhutada, NBFCs need to invest in advanced backend infrastructure technology to scale at a PAN-India level.
Automation of tasks, utilization of cloud-based data storage, and adoption of digital documentation are mitigating manual errors and operational inefficiencies. This translates to faster processing times and improved accuracy in financial transactions.
Customer Relationship Management (CRM) Systems
The amalgamation of technology is also shaping how NBFCs manage their relationships with customers. Advanced Customer Relationship Management (CRM) systems provide an integrated approach to managing customer data, interactions, and services.
This not only aids in understanding customers better but also enables NBFCs to anticipate their needs, tailor financial solutions, and enhance overall customer satisfaction.
Future Prospects
The journey of NBFCs integrating technology into their operations has just begun. With the rapid advancements in artificial intelligence, blockchain, and other emerging technologies, the possibilities are limitless. As these technologies mature, NBFCs can further streamline processes, offer innovative products, and create even more inclusive financial solutions.
Conclusion
In a world where technology reigns supreme, NBFCs are not lagging behind. They are embracing technology to reimagine financial services. From enhancing customer experiences to utilizing data analytics for credit assessment, the tech-driven transformation is reshaping the NBFC landscape. As these companies continue to integrate technology, we can expect a future of enhanced, accessible, efficient, and secure financial services.
