NBFC is moving swiftly on its five-year digital transformation plan at every level of operation and management
SUBHAMOY CHAKRABORTY
MAGMA FINCORP
So far Magma's focus has been to improve operational efficiencies towards digital transformation at various layers. Through the digital journey, the overall experience of the customer has improved while the employee has a better experience as well. The next goal is to explore newer opportunities of revenue generations.
Magma Fincorp embarked upon its digital transformation journey five years back with the pace of change accelerating every passing year. Magma, a non-deposit taking Non-Banking Finance Company (NBFC), registered with the Reserve Bank of India (RBI) as an asset finance company, decided to start the first phase of digital transformation with field executives as a major chunk of Magma employee base belongs to that category and the maximum impact to business could come from that segment. There are about 3,500 field executives who are, at present, deployed by Magma primarily to source business as well as collect the EMIs from the customers.
“Before digital transformation, the entire business sourcing process was getting managed via pen and paper and had huge dependency on the back-office team. Loan application forms were submitted at the back office where operations officers would enter the details looking at the handwritten form into the core system which often led to errors,” explains Subhamoy Chakraborti, VP-IT, Magma Fincorp.
Once these cycles get over, the customer is intimated about the loan approval. At the end of the day, the customer is getting impacted as the turnaround time for taking a decision was too long. Magma worked over three years to completely change the way business was done. “As part of our digital journey, all the 3,500-plus field officers were provided android tablets with custom-build android apps for sourcing business and collecting EMIs. The devices were protected by best of the breed Mobile Device Management solutions to ensure data security. Mobile operation centre was set up for handholding and managing the devices remotely via MDM,” explains Chakraborti.
Magma finally moved to the complete digital format of business sourcing, booking more than 98 per cent of loans from the android app. The next big candidate for digital transformation was the operations department. They were riddled with too many manual steps, resulting in a lot of wait time and turnaround time. Magma invested in a robust document management system and integrated scanning system. This helped the organisation in streamlining all the customer documents centrally for better management, lower TAT and easy access for any purpose later.
“Further process improvement and digitalisation was done when the field executives could start taking photos of KYC documents from the field itself, thus reducing the turnaround time further. The documents were clicked by tablets which moved seamlessly to the backend document management system,” says Chakraborty.
Since Magma's business depends heavily on the dealers/ DSAs, Magma decided to enable them further by sharing a portal. The channel portal was built to enable various business channels to get ready updates about the business getting done and reports about their pay-outs. This helped improve the relationship with the major channel.
When digital transformation pace picked up, it became necessary to manage these multiple projects as well as operationalising them. Towards that, a Cloud-based Service Desk solution from a leading partner was implemented. This is getting used for incidence reporting, service request management, IT asset management and procurement process. This resulted in a much better customer satisfaction from the end users. The confidence of being able to track an incident or a procurement with pre-defined SLA changed the way support was given by IT to the entire user community. This was expanded further to HR and administration departments to track incidents and requests in a cohesive way.
While all these massive exercises were undertaken, special focus was given to improve the user experience of internal as well as end customers. Separate initiatives were taken up to refurbish the dated user interfaces to make them look cutting edge.
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