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Case Study

Automating Debt collection for Microfinance Industry

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Client

Our client is an authorized Business Correspondent to multiple Banks and Non-Banking Financial Companies (NBFC’s) in India. They are engaged in providing micro-loans under the SHG /JLG model, credit-linked insurance, individual and group-based savings accounts on behalf of their banking partners.They provide financial products and services in a reliable, cost-effective, and transparent manner.

  • :   Fintech, Microfinance
  • :   Mobile App, Web Application
Challenges

Challenges

  • Financial Data Management Struggles

    The existing collection app encountered difficulties in storing, sorting, and securing vast amounts of customer data and financial data in real-time.

  • Collection Operational Challenges

    Organizing a large customer base and planning tasks efficiently proved daunting, leading to potential oversight of customers and operational inefficiencies.

  • Hierarchy Based Role-Based Access Issues

    Resource allocation becames a precarious task for our client, as improper distribution resulted in missed deadlines, increased project costs and project inefficiency.

  • Cash Management Risks

    Manual cash handling processes increased the risk of errors, theft, and inefficiencies in financial management, hindering overall operational effectivenes.

Solution

Dashboard with Real-time user data

  • Calendar and Menu
  • The dashboard displays a calendar and a menu with details of the RO and sections for updating member details, checking loan utilization, viewing deposit logs, and logging out.

  • Collection Overview
  • The dashboard provided insights into regular collection and overdraft (OD) collection, with detailed cards for scheduled tasks, demand, collected amounts, and savings.

  • Navigation Panel
  • A navigation panel at the bottom of the dashboard offered functions such as Navigate to Home,Money Deposit, Hotspot, E-receipt, and Statement of Account.

Real-time user data
Regular Collection

Regular Collection

  • Tabs
  • Regular collection and OD collection tabs were available for easy navigation.

  • Search and Filter
  • Users can search for members and filter results based on various criteria.

  • Center and Group Details
  • Details of centers and groups within each center are accessible, allowing ROs to manage attendance and collect payments efficiently.

Member Details Page

  • Attendance and Details
  • ROs can mark attendance and view member details, including account ID, EMI amount, OD amount, and total demand.

  • Digital Payment Options
  • Options for cashless payments via QR code or payment link are available, along with auto-populated customer details.

  • Partial Payment
  • ROs can handle partial payments and provide reasons for unpaid amounts, with options for future payment arrangements.

Member Details
Collection Summary

Collection Summary

  • Summary Details
  • A summary page displays key metrics such as attendance, demand, collected amounts, and savings, providing a comprehensive overview of collections.

  • Final Submission
  • Upon final submission, the submitted group is marked for tracking and follow-up, enhancing accountability and workflow management.

Overdraft(OD) Collection

  • OD Management
  • The OD collection section allows ROs to monitor live OD details of customers and centers mapped to them, facilitating timely interventions.

  • Filtering and Search
  • Users can filter and search for specific OD data, streamlining the management of overdue accounts.

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Deposit feature

Deposit feature

  • Cash Handling
  • The deposit section enables ROs to record cash collections, deposit details, and capture images of receipts for verification.

  • Deposit Options
  • Various deposit options are available, including deposit through BC points, direct bank deposits, handing over cash to branch managers, and locating nearby deposition points for convenience.

Collection Reports

  • PTP Reports
  • This report track promises made for payment and can be used to predict recovery chances. These reports also help in prioritizing follow-ups as well as identifying trends in compliance with promises made for payment.

  • Overdue tracker reports
  • OD reports helps to keep a track and prioritize collections by showing where accounts are overdue and trends in overdue accounts

  • Closing Cash Reports
  • This report summarizes the total cash received during specific periods which are yet to be checked and verified the loan facilitating financial institution.

Collection Reports

Performance and Credit Report

  • Collection Executive Performance Reports
  • CE performance reports can help in evaluating collection executive's performance and efficiency with addition to recovery rates.

  • Debt Coverage Ratio (DCR) Reports
  • The DCR ratio assesses a company's ability to repay debts with operating cash flow, indicating its financial health and risk profile for lenders and investors.

Key Benefits


Comprehensive collection dashboard

A central dashboard provided a calendar, menu, collection overview, and navigation panel for easy access to features like member details, loan utilization, deposit logs, and statements.

Digitized Collection

Discrete tabs for regular and overdraft (OD) collections offered search and filter functionality, allowing for efficient navigation, member management, and attendance tracking.

Member Details and debt payment

The member details page allowed collection agents (ROs) to mark attendance, view details like account ID and loan amounts, process cashless payments via QR code or payment link, and manage partial payments.

Collection Summary and Tracking

A dedicated summary page displayed key metrics and facilitated final submission for tracking and follow-up, enhancing accountability and workflow management.

Managed Overdue payment

The OD collection section provided live views of customer and center OD details (overdue amounts), facilitating timely interventions by ROs. Users could filter and search for specific OD data.

Effortless Debt Recovery Process at Your Fingertips.

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