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Nucleus streamlines Religare Finvest with mCollect

Kavi Arora, Chief Executive Officer, Religare Finvest Limited

Kavi Arora, Chief Executive Officer, Religare Finvest Limited

About Religare Finvest

Religare Finvest Limited (RFL), a subsidiary of Religare Enterprise Limited (REL) is a small and medium enterprise (SME) financing focused NBFC. With a wide network of branches and ISO certification 9001:2008, RFL is committed to providing debt capital to power the growth of the SME’s which constitute as the backbone of India’s economy. The diversified suite of lending solutions includes:

  • SME Mortgage loan
  • SME working capital

The company also runs a retail capital markets financing business which includes loan against marketable securities. RFL understands that each financial need is unique and offers customized solutions to empower the customer to prosper. With the belief that the customer’s success is their success, its presence in 25 branches across all major cities plays a vital role in nurturing the customers business while growing to a book size of over INR 11,308 crores.

Business Needs at RFL:

RFL manages debt management and collection through an in-house system for a growing portfolio of around INR 11,308 crores with a net NPA ratio of 0.76 (as on March 31, 2013). To aid this process RFL has a call center team which supports the recoveries function. There is also a large field collection team comprising of field/sales personnel and collection managers which is spread across more than 50 locations.

Debt collection has been identified as a critical business process where a friendlier and easier approach could result in improved customer satisfaction and loyalty. The choice of an IT product partner was critical for Religare Finvest, along with the operational efficiencies to ensure a smooth and efficient collections operation.

Since 2009, Nucleus Software’s FinnOne has been the backbone empowering Religare Finvest lending operations. Nucleus Software adopted Religare Finvest objective of streamlining debt collection operation as its own goal.

Key Challenges

Using a collaborative approach Nucleus Software worked closely with Religare Finvest to identify the key challenges which has to be addressed. The key challenges identified post studies were:

  1. Delays in Data Updation and Validation: With teams working out of various geographies, paper trail tracking came up as an issue that in turn made data validation a major hurdle. In the past collating validation field such as PAN card number, instrument/reference number, data types/pattern validation and other was a difficult task. There were instances where reconciliation issues rose when a single cheque from a customer with multiple loan was submitted.
  2. Risk of float money in the system: A key challenge was the risk of float money in collector’s hands. The unpredictable time taken by collection agencies to physically deposit cash was a key issue to solve.
  3. Operational Challenges: RFL faced operational in efficiency due to the manual and paper based collection system. Receipt books based on manual inputs resulted in errors like wrong agreement number, ineligible data, carbon copy impression quality etc. There was a perpetual risk of loss of manual receipts books which are controlled financial documents. The impact of such a loss can result in operational hassles.

Basis the analysis, a mobility based solution was recommended as best fit given the challenges. Nucleus Software’s FinnOne mCollect, the mobility collections solution offers several key features that has been designed to integrate with any base system. The application is compatible on Android, Blackberry, Symbian and Windows platform and capable of working on devices like mobiles and tablets.

Solution Offered:

For RFL, Nucleus Software implemented its out of the box version of its FinnOne mCollection solution which has proven successful in delivering significant operational and cost benefits to the banking industry. The solution is targeted at field collectors (For receipt recording, contact recording), Collection agencies (For receipt tracking and processing) and Bank Officials (Float money tracking, receipt recon, Foreclosure simulation). The mobile application interacts with Base Central Collection System on a real time basis using GPRS/Wi-Fiand is also capable of running offline application processes.

Implementing mCollect:

Religare Finvest’s successful implementation of Nucleus Software’s FinnOne mCollect has created a fast, efficient and a paperless system; empowering the collection agents to access the much needed information instantaneously and achieving end customer satisfaction. With FinnOne mCollect from Nucleus Software, Religare Finvest Ltd benefited on multiple fronts with an efficient and holistic Loan Servicing and Collection software:

 

  1. Deployment Compatibility: Nucleus Software highlighted that the product, FinnOne mCollect, will be best supported on the environment on which it had been thoroughly tested. Religare Finvest strongly considered the recommendation and provided the desired Web Server environment in the form of Apache Tomcat Version 7.0 t o the N ucleus Software mobile development team to deploy the application.

 

  1. Handset Compatibility: Nucleus Software suggested an investment in newer handsets with which the application was compatible to increase the efficiency quotient. RFL went ahead with the suggestion which resulted in leveraging the product functionality in an environment that was ideal.

 

  1. Product Customization: RFL’s requested customizations were not only implemented, but were also parameterized and included as parts of Nucleus Software’s core FinnOneTM mCollect product.

 

mCollect: Values Delivered

 

Apart from value-adds like higher security features and multiple OS support with FinnOne mCollect from Nucleus Software, Religare Finvest Ltd benefited on multiple fronts with an efficient and holistic Loan Servicing and Collection software.

 

  1. 1. Operational Efficiency & Monetary: In the last 6 months, mCollect has seen over 90% penetration across the Religare Finvest Ltd field collectors team with over 25,000 payments collected on this mobility solution. In monetary terms, per receipt cost came down to just 30% of prior expenses. This product has enabled a virtually paperless operation therefore eliminating the need for managing receipt books. Nucleus Software recognized that correct, instantaneous receipts could ensure accurate status of customer outstanding, transaction records and streamline collection operations for RFL.

 

  1. 2. Real time payment updation-Reduced Errors &Faster Follow Ups: In the last 6 months, mCollect has seen over 90% penetration across the Religare Finvest Ltd field collectors team with over 25,000 payments collected on this mobility solution. In monetary terms, the per receipt cost came down to just 30% of prior expenses. This product has enabled a virtually paperless operation therefore eliminating the need for managing receipt books. Nucleus Software recognized that correct, instantaneous receipts could ensure accurate status of customer outstanding, transaction records and streamline collection operations for RFL. With FinnOne mCollect, RFL has minimized human errors as the captured information is editable. Users now have access to an instant MIS to track the cash collected and follow up schedule. Chances of collection have increased significantly as queries raised by customers can be addressed instantly in contrast to earlier situations where such un-resolved queries were leading to non-collection till the queries get resolved.

 

  1. 3. Enhanced collection efficiency- Overall TAT improvement by 1-2 days: Advanced technology adoption has enhanced collectors’ confidence and the organization’s brand value. The collectors reported a ‘Positive and enthusiastic experience’ after using the FinnOne mCollect application. A TAT of 5-7 days in delivering SOA / FC reduced to Zero due to the online features, with more improvement expected in future.

 

  1. 4. 85% reduction in Float money in the system: Risks due to losing manual receipts have been mitigated. There is no longer any need of filing FIRs, newspaper publication and other compliance related activities for lost receipt books. By increasing control on float money, the risks involved have reduced dramatically.

 

  1. 5. Customer Satisfaction increase with instant Issuance of receipts: With all customer queries solved at their doorsteps, this solution ensures higher customer satisfaction. Instant SMS/Email and Religare Finvest personalized payment receipts brought about and built a trust. With such personalized services being offered, some customers have become more inquisitive to know the latest information on their loans. Customers now do not hesitate to pay in cash, because (s)he gets instant SMS and email coming from RFL directly.

 

  1. 6. Employee empowerment through hand held device: Streamlined operations, hassle free collections and easy to use technology solutions have greatly empowered the RFL collection team.

 

Advantages

 

Partnering with Nucleus Software has, offered RFL a significant edge in serving its end customers. Nucleus Software comes with a set of differentiated advantages which makes it a preferred partner in this industry, across geographies:

 

  • Deep understanding of collection function of the financial organisation, which goes in product creation, solution implementation and post implementation support.
  • Seamless integration with the base FinnOne Collections Module
  • Unmatched features like floating money MIS, online SOA & FC (reading directly from FinnOne LMS
  • Off the shelf solution, amazingly fast implementation
  • A dedicated Mobile product and support team
  • Mobile product roadmap with strategy to keep the product enriched in terms of functionality,
  • technology and compatibility of various mobile OS versions and models

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About Bhawna Satsangi

Bhawna Satsangi is Sub-editor at Techplus Media New Delhi bureau, She has over 9 years of work experience. Her interests include Writing, Reading, Playing Basketball and Watching Movies.

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