NBFC’s (Non-banking Financial Companies) are financial institutions other than commercial banks which offer vehicle financing, personal loans, working capital loans, consumer loans, housing loans, loans against shares, investments, distribution of financial products, etc.
Major challenges faced by NBFCs are:
- Faster rollout of EMI collection points
- Controlling infrastructure & man power cost involved in brick-and-mortar branches
- Maintaining transparency in collection of EMI by field executives
- Real time capture of EMI collection details
- Reducing on field payment collection cycle time to control operational expenditure
- Generation of accurate reports
Manual process of payment collection is time consuming and high on expenses. Field executives need to be trained and staff count is large to reach remote customer base. Manual entry of payments data along with customer feedback, complaints, payment schedule and other communication is prone to error and cause load on infrastructure available in terms of network load and delayed reconciliations.
EMI Management System:
Dusane Infotech provides a handheld EMI management system for NBFCs. The handheld terminal provides a means by which agents can enter EMI collection details online and data is updated on central servers instantly. It also sends alerts to customers confirming that their payments had been received, from the central server.
EMI collection management system is available in both online & offline forms.
Online: The POS terminal is connected to central server over GSM/GPRS network. The field executive can fetch customer details like name, address, loan allocation date and installment due on to the handheld device from central server. On collection of EMI field executive updates the payment details using same handheld device which gets uploaded on central server without any latency. Customers get SMS acknowledgement on their mobile confirming payment done. Daily Monthly reports give details of day to day transactions, also snapshot of efficiency of operations.
Offline: In offline mode as there is no connectivity available with central server customer data like name, address, loan allocation date and installment due are fetched in advance and stored on POS terminal local storage memory. On collection field executive generates & prints two receipts with in-built printer: One is handed to the customer and another is maintained by executive for reconciliation purpose later on.
At the end of the day, data is transferred to the PC at branch office. After updating of report, SMS regarding the details of payment is sent to the customer’s mobile phone.
EMI Management System Advantages:
Dusane’s EMI management system reduces overall collection cycle time and thus reduces operational expenses. Transparency in payment system improves customer trust.
Replacing manual reconciliation and data entry with automated processes improves productivity and considerably reduces manpower requirement reducing overheads further bringing down working capital requirement.
MIS reports provide by EMI management system give complete overview of NBFC operations to senior management in single view. Reports also give incentives field executives are eligible for. It makes decision making faster Instead of spending time in operational nitty-gritty’s, more time can be sent on strategic activities. Value Added Services like recharge vouchers; Utility bill collections etc. can also be enabled.