Global financial systems are reeling under the onslaught of covid pandemic and the most affected seems to the small-scale businesses, which have been severely impacted by the crisis resulting from lockdowns and financial constraints. Loan moratoriums need to be extended, job losses have crossed over 4 million mark and liquidity seems to be resting with only a prospering few while its lack in other major areas is denting the financial landscape. Of their own volition, banks and NBFCs have tightened the lending norms and are reluctant for credit expansions given the elevated risks.
The initial shock that covid created seems to be waning now. Everyone appears to be able to cope with the infection per se and there is awareness that vaccine for masses maybe a far cry. So, businesses are getting back on track and the credit flow in the system is showing a semblance of near normal albeit selectively with the government providing support for liquidity and offering some schemes under Atmanirbhar Bharat. This can be the beginning of a new era where financial enterprises are rapidly altering their business models.
The financial paradigms are shifting to deep reliance on technology to serve more clients at a faster pace and to impart more effectiveness to the conventional banking dominated by human judgement, touch and feel. The lenders today, including the fintechs, are relying on transaction and interaction data trails and online verifications as they look to bolstering their credit models and underlying processes. The landscape now includes self-learning technologies, machine intelligence, big data, agile technologies and all of these are today part of the WFH model.
Manish Jaiswal, MD and CEO of Magma Housing Finance, is among the business heads in the financial services realm, who are articulating newer strategies and his forte is the affordable housing space and micro, small and medium enterprises. He is steering Magma Housing Finance to become an organization with fintech capabilities but with a difference, that is, strong on ground presence and rich collection infrastructure. He mentions that the company is focussed on evolving newer and well segmented business models and thus balancing the traditional models with technological supplant. He, however, concedes: “Most credit models today are under brutal testing and paving the way for altered lending landscape”
CUSTOMER LEVEL DATA RICHNESS
While the combination of data and technologies is helping evolve smarter products with agility, the customer and underlying data intelligence around is assuming proprietary proportions, believes Manish Jaiswal. He mentions that as data richness enhances, the service deliveries will enhance from ‘months to minutes’. He says Magma Housing Finance is a tech-NBFC and believes that organizations that connect emotionally with the customers while deploying technology to serve them will gravitate customers exponentially. He reiterates that the importance of customer connections is unwavering and the top most priority.
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