Ambition:
Our startup was eager to break into the large enterprise market, and what better opportunity than partnering with one of India’s largest Non-Banking Financial Companies (NBFCs). The NBFC had recently revamped their loan origination system (LOS), automating pre-qualification, application processing, underwriting, and credit decision processes to reduce their delinquency ratio. However, in discussions with senior leaders, it became clear they were keen to optimize the post-disbursal phase, where previous efforts with leading Tele-Calling Service providers had fallen short. I immediately realized that to secure this prestigious client, we needed to position ourselves as a solution provider rather than just another vendor, bridging the gap between top tele-calling vendors and the NBFC’s advanced digital processes.
Action:
Assessment and Baseline Definition:
I led a thorough examination of the NBFC’s collection process, focusing on cost structures and CPAR (Cost Per Account Resolved) metrics. This analysis highlighted that resolving cases through call centers cost ₹52 per case, while field interventions escalated costs to ₹250 per case resolved.
- Goal Identified: Reduce reliance on costly field interventions by managing cases more effectively at an early stage and minimizing the progression of cases into delinquency buckets.
Strategic Goal Setting and Alignment:
Collaborating closely with the NBFC officials, we defined success criteria aimed at a 30% reduction in CPAR costs and preventing 12-15% of cases from entering delinquency. Additionally, I set a personal goal of leveraging the lender officials’ extensive experience to refine efficiencies and processes, ensuring collaborative success.
Team Mobilization and Resource Optimization:
I directed coordination efforts with internal teams—product, innovation, quality, and solutions—to harness and enhance existing capabilities. We developed a comprehensive blueprint integrating AI, automation, and the cost-effective use of a gig workforce. This dynamic approach allowed us to address staffing challenges without replicating traditional cost structures.
Operational Empowerment and Decision Support:
To enhance operational efficiency, we implemented an AI-driven quality auditing system evaluating 20% of total calls. Utilizing interaction analytics, this system assessed customer intent, identified gaps in agent performance, and verified the capture of critical information. The actionable insights provided lender officials with the tools to make informed decisions, optimize strategies, and improve overall process effectiveness.
Ambition Realized:
Our superior understanding of customer needs and alignment with the NBFC’s success metrics enabled us to position our startup as a compelling solution provider. We outpaced established partners by demonstrating the value and effectiveness of our solution, leading to a paid Proof of Concept project. The success of this project culminated in securing a 3.8 Cr. Annual Recurring Revenue contract.
For the NBFC, our approach led to an 8% reduction in the overall count of cases entering bucket-1, resulting in annual cost savings of over ₹20.00 Cr.