5 Key Customer Experience Challenges That Nbfcs Need To Solve

The NBFC (Non-Banking Financial Company) sector has emerged as a driver of inclusive growth in the Indian economy, playing a crucial role in providing credit to the underserved segment.

- Chaitanya Chokkareddy

What sets them apart from the multitude of players within the financial sector is their ground-level understanding of customer profiles and their ability to customize the product as per their credit needs.

In the last decade, the BFSI segment witnessed large-scale technology adoption in order to make the process agile, eliminate customer pain points, and provide a seamless lending experience. The findings of a recent survey published by FICCI and PWC underscore the importance of technology in improving the customer journey. According to this survey, 83% of Indian financial organizations say Al helps enhance their customer service.

Some of the key challenges faced by organizations in the sector are outlined below:

1) Simplifying operational complexity
As NBFCs perform a wide range of functions like offering loans and advances, credit review, interest accrual and foreclosures, keeping a tab on these various financial operations could be difficult. Lenders working without an agile and well-defined process may face heightened operating risk.

An efficient CRM system can potentially revolutionize and reduce many difficulties associated with manual procedures.

As per a PwC survey, the operations and finance functions have seen increased RPA adoption and demonstrated a remarkably high ROI.

A major NBFC recorded a 25-30% reduction in turnaround time for their loan application process through digital channels after it leveraged Robotic Process Automation to reduce administrative effort and the bulk of paperwork.