How Technology is transitioning NBFC | csl finance

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4/3/23, 428 PM How Technology is transitioning
NBFC CSL Finance Ltd Aug 10, 2021 2 min
read How Technology is transitioning NBFC
Finance, that has rightly been termed as driving
force of business is short in supply for many
people- startups, small firms and individuals as
they are not able to satisfy tough conditions set
by the banks. Moreover, most public sector banks
and some private banks have been gripped with
bad loans for the last few years and it has
presented a tremendous opportunity for NBFCs to
step in with its offerings and aim for growth and
business success. The companies after fulfilling
NBFC incorporation procedure have witnessed a
robust growth rate as they come to the rescue of
such people and companies, especially in small
towns and remote areas, and given them a
lifeline NBFCs are now more focused on developing
innovative products and catering to low-income,
urban customers in unorganised sectors. In such a
scenario, NBFCs are adopting business and
operational models powered by technologies that
seamlessly facilitate the design, launch,
implementation and execution of tailored products
and services. RISE OF ONLINE NBFCs With a high
growth rate every year, there are many ways in
which the internet has affected the financial
services sector including the NBFCs in India. To
differentiate their services and gain advantage
over the rising competition, the Non-Banking
Financial Companies (NBFC) are trying to provide
their services online to the customers. This is
one of the factors for which Indias NBFC sector
is experiencing rapidly.
https//www.cslfinance.in/post/how-technology-is-t
ransitioning-nbfc
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4/3/23, 428 PM
How Technology is transitioning NBFC
RISE OF ONLINE NBFCs Investing in new
technologies and strategic partnerships with
incumbent financial institutions and FinTechs
allows NBFCs to lower their costs when it comes
to increasing their customer base, lowering
customer acquisition costs, servicing existing
customers or de-risking the portfolio while
trying to overcome the increasing formal credit
penetration in a growing economy. NBFCs are
undergoing a great technological innovation and
revolution to disrupt how financial services
have been made available to individuals,
businesses and entrepreneurs. By taking the help
of Software-as-a -service (SaaS) startups, NBFCs
are adopting newer technology into their
systems, especially in the light of the
governments push for digitisation

• ADVANTAGES OF ONLINE NBFCs
• The new-age NBFCs are using technology like never
  before and harnessing partnership eco- systems
  across the value chain of lead generation,
  customer onboarding, credit or loan disbursement
  and collection while facilitating the design,
  launch, implementation and execution of
  services.
• The key advantages of online NBFCs are
• Branchless operations to increase reach in market
  and reduction in operating cost
• Dealer based solution helps in expansion of
  business
• Automated End to End loan management
• Analytics to find cross selling and up selling
  opportunities
• Agility to quickly accommodate customers
  requirements and customization
• Conclusion
• Technology boosted NBFC business models that aim
  to lower dependency on manual tasks and is built
  on the Robotic process automation, helps in
  broader inclusion, prowess in credit quality,
  cost-effectiveness and quick turnaround time as
  compared to the traditional lending models of
  banks.

https//www.cslfinance.in/post/how-technology-is-t
ransitioning-nbfc