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However, there is another set of data on a year-on-year basis, the growth
comprising their mobile banking usage rate is yet to reflect the potential of
through web and app, social media the overall segment. Considering these
interactions and comments – in other factors, NBFCs will now have to diversify
words, their digital persona - which their portfolio, preferably offering
largely remains untapped. products that appeal to the existing
customer base.
Financial institutions now We are already seeing this transformation
realize that relying solely in progress. NBFCs who previously
on regular KYC data in CRM specialized in gold loans are now looking
systems, such as income, age to tap into the vehicle and home loan
and geography, is not enough. segments and vice versa. This is an
Analyzing digital footprints important transformation that the NBFCs
of customers using new in India are going through and in the
age analytics tools, artificial long run this diversification will help to
intelligence and machine increase year-on-year disbursements,
learning techniques can also Assets Under Management (AUM),
reveal a lot about the behavior income, return on assets, and decrease
and consumption patterns of concentration risk.
banking customers. Traditional CRM is static
Traditionally, financial institutions have
used demographic information stored
Dynamic customer base with in the CRM tools to segment customers.
dynamic needs Experts say that in an ideal scenario, with
an annual GDP growth rate of 7-8 %,
Non-Banking Financial Companies the standard of living of people doubles
(NBFCs) play an important role in the every 12-14 years.
mass retail semi-urban and rural sectors. However, how many times does the CRM
Traditionally, these sectors have been of system get updated with this data and
less interest to the banks. Until a year what is the cost of frequently updating
back, NBFCs were content operating in it? Are there other ways to understand
niche markets like vehicle finance or the ever-changing preference of
gold loans. However, now the market customers and meet the burgeoning
dynamics have changed. aspirations of the masses?
The new-age small finance banks, Segmentation basis from
equipped with the experience of being KYC to BYOP
micro-finance institutions, know the Financial institutions now realize that
semi-urban and rural markets extremely relying solely on regular KYC data in
well. Although NBFCs have shown growth CRM systems, such as income, age
14 INSIGHTZ - VOLUME 03, 2018
