nbfc 2 - tejora.com · summary indian nbfc’s credit share ( between 2005 to 2015 ) 10% to 13%...

NBFC 2.0

Table of Contents

© 2016, Tejora Private Limited

Summary01Exploring the Silver Lining02NBFC 2.0 the Winners of Next Decade03Tejora’s Ways to Make it Happen04The 5 Pillars & Tejora Products05Digitizing Other Line of Business06Quick Facts07Key Technology Strengths08

Summary

Indian NBFC’s Credit Share ( Between 2005 to 2015 ) 10% to 13%

UP FROM

Surprise Domains contributing to Share Growth apart from traditional domains like Commercial Vehicle (CV)

@ 13% credit penetration, India is well behind other economies

We expect the growth in NBFC credit to further accelerate over the next 5 – 10 years Promise of acceleratedgrowth is predicted on NBFC sector transforming itself to serve latent credit needs of emerging India.

This Success attributed to sharp focus on product lines leading to:

• Better Cost Control• Bad debt Control

• Better Customer Service• Consequent faster growth at higher profitability compared to banks


THE GOOD

THE BAD

THE SILVER LINING

They are here to stay

Thailand & Malaysia 25% China33%

Mortgages is the new Kid in the block

Problem Statement : Both Consumption as well as commercial credit demand are characterized by lack of income proof documents owing to large scale self employment in the country.

The Hope : Lack of documents can now be compensated by huge amount of surrogate data available.In digital ecosystems, NBFC’s have to find a way to use the digital surrogate data to make better credit decisions.

Indian consumer & businesses are adopting digital at a rapid pace.

NBFC’s have to embrace digital to dramatically enhance internal productivity:

• SALES

• OPERATIONS

• PRICING

and to reimagine the end to end customer experience.

Exploring the Silver Lining


NBFC 2.0 the Winners of Next Decade


2005 to 2015

2015 to 2025NBFC 1.0: Traditional Source of Advantage

NBFC 2.0: New levers available• High touch model for credit, risk management, and collections• Mostly stand alone end to end business model• Sharp focus on a product-customer segment• Mostly physical model heavy on cash

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Explosion in surrogate data availability and data science to establish credit worthiness :

E-commerce platforms, retailers, social media, bill payments, statutory filings etc.

Partnerships can create compelling customer propositions with embedded lending :

OEMs |Retailers-market places | Payment Banks

Diversified model with synergy across product segments driven by customer data

capture and backed by analytics

Bionic model-with synergic combination of human and digital processes and

ininterface to customers

The technological and digital consumer trends require NBFCs to adjust to the new opportunities. Credit has to be data enabled, given the huge surrogate data captured in the digital age. NBFC’s should forge partnerships to create differentiated customer experience. Data analytics can create synergies between different product economics. And cash has to give way to electronic fund flow.

Tejora’s Ways to Make it Happen

Tejora enables NBFCs to strive for excellence in five pillars:

CUSTOMER EXPERIENCE SALES OPERATIONAL EXCELLENCE CREDIT & COLLECTIONS EFFECTIVE PRICING


The 5 Pillars & Tejora Products

• Property Finance Approval System

• Credit Bureau Check

• Verification Engine

DSA Management System

• Electronic Operations Process Manual

• Enterprise Portal Solution

Collections Framework


Opensource Technologies

PROPERTY FINANCE APPROVAL SYSTEM


Who Benefits : The Retail Assets Department

Product Highlights CUSTOMER EXPERIENCE

Tejora’s PFAS provides Loan Origination System for Property Loan, Balance Trans-fer and Loan Against Property.

Integrated with Credit Bureaus to get Credit Score and rule engine is developed that include Rules on basis of Credit Score, Demographic Values and customer data to derive Loan Eligibility and Eligible Amount.

SSystem Caters to Property Loan for Build-ers and individual Units. In case of Builders, APF (Approved Project for Finance) letter is generated, which can be used by Individ-uals while purchasing flats. This provide fa-cility that Individuals need not re-submit property documents.


Product Benefits CUSTOMER EXPERIENCE

PFAS as a product do not just offer a loan but the entire experience of search , choice , and ownership.

The illustThe illustration shows how the home loan journey get redesigned by some players from imagining a dream house , looking for available choices, legal & technical due dili-gence , buying , taking a mortgage , to com-pletion of interiors.


CREDIT BUREAU CHECK VERIFICATION ENGINE


Who Benefits : KYC / Loan (Pre) Approving Department


Product Highlights CUSTOMER EXPERIENCE

With increasing digitization of ecosys-tems , more & more data on borrowers is available electronically.

Tejora’s proprietary credit bureau mid-dleware and verification engine are leveraged towards credit analytics, e-KYC and monitoring .

One major source of data is e-com-merce market place & Tejora’s inter-facing expertise will give excess to massive data of over a million SME sellers which can be used to create straight through lending systems.

DSA MANAGEMENT FRAMEWORK


Who Benefits : The Sales Department

Payout Calculation Exceptions / Deviations

Arrears/ Wrong Booking

Change/ Confirmation Workflow (if required)

Verification with Digital Signature/ Signature Scanned Copy Upload (if required)

Payment Release Check with RAMCO and get PRF no, Invoice dates, Paid data

DSA Payout Statement

Forwarded to DSA

Slab Manager+ Incentive

DSA Group Handling


Product Highlights SALES & PRODUCTIVITY

Direct Selling Agent (DSA) Manage-ment System - NBFC has got chain of DSAs across multiple products like Car Loan, Home Loan, Personal Loan, Loan Against Property, CV/CE and Credit Card.

System enables Product Managers to define payout algorithm and calculates payout for each DSA, auto-generates Invoice and sends request to payment processing system


Product Benefits SALES & PRODUCTIVITY

Tejora’s DSA Management framework can enhance salesforce productivity by as much as 25%.

Mobility Solutions allows alerts for action to be pushed to them in time , provide product information at their finger tips, help on the spot closure

ELECTRONIC OPERATIONS PROCESS MANUAL


Who Benefits : The Retail Back Office Department


Product Highlights OPERATIONAL EXCELLENCE

Department and Role based system that gives complete flow and knowledge content to educate all employees of NBFC processes to ensure NBFC processes and compli-ance are followedAccess based system that personalize Processes to be displayed on basis of Business Role and DepartmentBusiness Analysis of each process with respective De-partment heads and business team.Separate Section for compliance regulations that must be followed for each process for

eg. For Cheque deposit above 50,000, KYC document is must. Any section that include some software, Education Video for System Tour Guide is provided. This is to edu-cate users of system screens and usage.

ENTERPRISE PORTAL SOLUTION

Who Benefits : The HR / Corporate Communication Department



Product Overview OPERATIONAL EXCELLENCE

EnterpriseGateway

Enhanced Multiway CommunicationTop-Down, Bottom-Up, Peer to Peer

Enterprise Collabration& Social Communication

Awards & RecognitionUnified frontend forMultiple Applications

AEP

Service Layer

CBS LMS HRMS Approval

Multiplatform SupportWeb+Android+iOS+Tab

Employee Self Services

Enterprise Chat+In chat Approval

Gateway to Knowledge(Industry update, Bank News, Collaterals & Circulars)


Product Highlights OPERATIONAL EXCELLENCE

As a solution, Tejora designed a complete One stop Shop which provides unified front end based on customer role, designation and applications that he is permitted to access

At the back end, complete Service Oriented Architecture is established to interact with multiple systemsRight from Attendance Marking to actual operations for eg, For teller, making entry to core on cash receipt is done through the same channelAlso, unified Notification engine was developed that provides notification across multiple systemAlong with Work related features, A complete suite of Social Widgets is provided. For eg.: Company News, emplemployee Birthdays, Facebook like Microblogging, Chat, Quizz, Polls, Policies, Awards, Calendar Management, Document Management, Project Management, RSS Feed integrationand discussion forumsArchitecture to cater to 42000 concurrency and optimized to handle multiple Batch Jobs at same timeOn top of that:- There’s a complete concept of Gamification where Loyalty Points are given to customer on basis of his social interactions, Work and his participation across multiple NBFC Driven programmes

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Product Benefits OPERATIONAL EXCELLENCE

Tejora’s Enterprise + Process-Knowledge Portal solution, includes an end to end digi-tized process.

This ensures improvement in service , re-duced costs and reduce operations risks.

The illustration exhibits the impact of rigor-ous process digitization at a Tejora client.

Fulfillment of first touch point

Paper truncation at first instance

System driven checks for operations risks

National Centralization

Proactive end to end visibility to customer

Single face of company across multiple channels

ENTERPRISE DEBT RECOVERYMANAGEMENT FRAMEWORK

Who Benefits : The Retail Assets - Collections Department



Product Highlights CREDIT & COLLECTIONS

Allocated Data

Fin One Fin AcleSource 1 Source 2 Source 3 Source 4 Source N

Tallyman Staging

Receipts + Application Legal

Billing

Collections Sales Settlement Automated Payment Processing

Host systems

Collections Framework

Allocations Engine


System Vision

System Vision

Gateway to Business Knowledge

Agency Management

Costs - 15-20%reduction in processing costs

Device agnostic, seemlessWeb & Mobile experiece

An Executor of BusinessTransactions

Facilitator of EnterpriseCollaboration 1

2

3

5

Device agnosti

c,

seemless Web

&

Mobile experie

ce

4

Productivity - 25%+ in

crease

across functions

Zero Licensing Fee



Product Benefits CREDIT & COLLECTIONS

Improved collection efficiency

Tangible benefits

Offering self-service and a multi-channel approach can improve efficiency in debt collection at Bank. The framework can be expected to bring in a major shift in the Debt Service Management strategy and improved collection efficiency.

Reduced credit loss: Debt collection performance improvement helps in credit loss savings. Basis existing client information, in case of automobile loans, the bank achieved 50% increase in debt collection, thus experiencing substantial reduction in credit loss. More reduc-tion can be achieved as the centralized allocation is linked to team performance.Improved manpower utilization: Optimized allocation aided better utilization of manpower. Automated and centralized allocation, in case of credit cards and personal loans, can be done by using 80% less manpower.Reduced turnaround time (TAT): The TAT for allocation can reduce from five to six days to three to four hours, thereby providing more time to collectors on field to resolve cases.Transparency: Since the allocation rules are agreed upon and deployed by a central team in line with business objectives, the system gives high transparency

Intangible benefitsCustomer delight: The use of soft touch channels for first time defaulters and cases with low outstanding amounts and allocating the same employees for customers availing multiple loans have reduced escalations and resulted in customer delight.Direct collections: The debt collection by bank employees (rather than the traditional model of collecting through trained agents) has increased by 78% in one of the asset products.

Across Departments Successfully Showcased expertise

Brokerage

Retail Management

Investment Banking

Cards &Payments

Consumer Lending

Human Resource

Governance Risk & Compliance

Legal

Retail Banking

SME Lending

Asset & Wealth Management

Corporate Banking

Consumer Lending

Supply Chain Finance

Digitizing the other line of business

Bespoke Solutions


TECHNOLOGY CONSULTING TOWARDS DIGITIZING ENTERPRISES

EXPERTS ON OPEN SOURCE TECHNOLOGIESSOLUTION

CONCEPTUALIZING TO EXECUTION

COST EFFECTIVE

BESPOKE SOLUTIONS

USER TRAININGS

SUPPOSUPPORT & MAINTENANCE

Years of Industry Experience

13 450+Major

Product Releases worldwide

8Average Years of Customer Stickiness

300+Engineer’s Strength

90%Employee Retention

Quick Facts



Key Technology Strengths

System is developed using Open Source Technology Stack

MySQL(Open Source SQL Database)

Vulnerability Assessed,Application Secure and Penetration Tested SystemHorizontal & Vertical

Scalable Architecture withLoad Testing done for

1500-2000 Concurrent Users

Separate Media Server for File delivery and storage

Active Directory Authenticated and HRM Integrated System Case Based Activity Trail

to track all the activities (Add/Edit/Updates) for entire Life Cycle

NO

SOFTWARE

LICENSE

COST


www.tejora.com [email protected]

Tejora Private Limited Unit # 10 - 13, 3rd Floor, 'A' Wing, Prism Towers, Mindspace, Goregaon West, Mumbai 400104, Maharashtra, India.

+91-22-40780780

India UAE AustraliaUSA

We are a Technology Company Adding value in industries like Banking, Financial Services, Retails, Communication & Technology

Core Offerings

14 years old, founded in 2003

Employee strength of 300

“Client-first” culture

Employee stickiness 85%

Customer stickiness Average 8 years

Cost-effective and nimble.

Innovation

Cost-effective solutions delivered faster.Innovate to Simplify.

Quality

Completeness and Correctness in every work-product.Fanatic Attention to Detail.

Best People

Attracting, developing & retaining the best talent.Be utmost sincere with a can-do attitude.

Accountability

Dedication & Responsibility.We deliver on all fronts.

Products> Property Finance Approval Systems> Chatbot

> Trading Portal> Enterprise Application Integration

Services> Bespoke Product Development• Product Development

• Product Re-Engineering

• Testing & Validation

Staff Augmentation

nbfc 2 - tejora.com · summary indian nbfc’s credit share ( between 2005 to 2015 ) 10% to 13%...

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