Improving Loan Recoveries and Resolutions for a Private Sector Bank in India

CHALLENGE

SatSure’s client is one of the largest private sector banks in India. Our client is well known in the industry for adopting new technologies to enhance their customer service and experience. While every bank has extensive corporate and retail credit service offerings, rural lending, which is also a part of priority sector lending (PSL), was a focus for the client. They wanted to increase their portfolio in the rural areas for various agricultural and allied activities related to loan services and improve access to formal financial services for the farmers who generally have difficulty accessing them. 

The bank had to make many customisations in the rural business and create unique customer-centric initiatives to enable this. However, in rural lending, every bank faces challenges around resource allocations, controlling costs with heavy dependency on field officers, and limitations on digitising information and processes. 

Before adopting SatSure Sage, the client additionally faced problems like information leakage, data consolidation, non-uniformity in feedback quality, and delays in collections.

WHY SATSURE?

Our client wanted to engage an external vendor who would work with them to understand their problems, department structures, processes, and Key Performance Indicators (KPIs), and comes with the expertise of satellite remote sensing, agriculture, has flexible delivery models like software integrations and native mobile applications, has exposure to problems faced on the field, and understands the loan lifecycle management process.  SatSure, being a deeptech firm, focuses on making satellite earth observation data accessible through its bespoke big data platform, driven by AI and ML and decision intelligence  framework. 

CREATING A DECISION MAKING FRAMEWORK

The very first step for SatSure was to implement SatSure Sage’s requirements capturing framework. Every bank has unique product offerings, strategy, team style, and department and organisational goals. While SatSure Sage is a complete offering, we always put an element of customisation to our products and services to fit the customer’s unique requirements. In this case, while the client had the necessary processes in place, they were extremely limited on alternate data and information access, field officers being the only source of information and lack of digitisation of data and processes.

The decision-making framework linked the crop’s performance in the current season, its historical risk, and incorporating other ancillary parameters which can affect crop production in a season. The decision-making framework helped the client build a business strategy that focused on reaching the right location, at the right time, with the right plan by creating customised, cost-effective plans for different types of repayment profiles.

RESULTS

Today, SatSure is handling close to 95% of the rural lending portfolio for the client. SatSure Sage has allowed the client to build a more robust review mechanism backed by real-time information & data consolidation.

SatSure delivers the insights through its mobile application for the field staff, dashboards to executives, and managers while also integrating with the client’s in-house application, which speaks about SatSure Sage’s reliability and secure systems.

In the first six months of implementation, the client saw an average 100% improvement in resolution percentage.