by July 4, 2012 0 comments

The financial services company streamlines its entire business process by deploying 2,000 business handheld device for 648 branches across India with instant, centralized updates, thereby enabling loan disbursement in two hours

Mahindra and Mahindra Financial Services is a non-banking finance company having a vast network of branches across India. They provide personalized finance for a range of utility vehicles, tractors and cars, focusing on the rural and semi-urban sector. Earlier, the collection force of MMFSL used to use manual receipt books on files to gather data. It was difficult for them to get information on daily collection and identify the performance of executives. Plus, there were chances of losing or misplacing the book full of customer data. The chances of misuse were also prevalent which resulted in misappropriation of collections. The customers could not get back any confirmation on the deposit of cash in his account.

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Employees have to follow a huge manual process of preparing conveyance reimbursement vouchers & getting it approved. The receipt book given to one employee was used by other employees too thus making process of performance measurement difficult. Customer walking to a connected branch during power cut was once again issued manual receipts. The management had to rely upon the collection figure reported by EOD reports without any validations.

The lost last-mile information was not delivering results. That’s when the company decided to change things. The longer they waited, the more consumers and business was being lost. They devised a solution called MFConnect-3000 to fix the last-mile problem. Instead of increasing the number of branches, they decided to transform on-field executives into mini-branches to bridge the last mile gap.

Processing of loans is mostly slow and time taking and when one is dealing across rural India, one has to deal with a set of problems such as lack of infrastructure, resource, connectivity and the slow capturing of data and delayed transfer rate. All of this had a negative effect on the business. Also, the business team had to rely on data entry team for business proposals to go online. Data consolidation was an erroneous task.

The Implementation

The Me-Alam implementation involves deployment of portable handheld devices integrated with camera, biometric fingerprint reader, thermal printer, voice recording, GPRS, and LAN connectivity. The vision behind the project is to empower MMFSL business team with mobile technology to accomplish business processing tasks with minimum dependency, duplicity and lead time. They have developed on Open Source environment which connects their customers and management together seamlessly.

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This open source solution enabled the business team to capitalize the rural potential via mobility, using cloud computing in a network environment. The deployment enabled MMFSL to meet financial inclusion, collect adequate customer data (biometric, voice and photograph) to handle operational risk and compliance. Its back to back connectivity with document management system delivered a paperless business model. “On the fly” data processing resulted in employee engagement with timely incentives. Solar charging support adds on uninterrupted services to customers, keeping business alive even in worst power conditions. The company has architected 2k Business Handheld Devices for 648+ branches across India .

Can you explain the process whereby you disburse loan in 2 hours that used to take 2-days earlier?
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Our goal was to improve rural customer convenience & maintain the application performance and systems availability at rural locations online in a secure redundancy environment. We wanted to capture the actual information from remote customer place where the exact transactions take place. Hence the concept of handheld device to support our executives was developed. Since our customer base is mostly farmers and transporters, they have very little exposure to technology. So we were very sure that we will have a device, which would serve them all the demands they would want to get at customer door step. Then the idea of MF-Me-Alam came in to support both off line and on-line business and take care of rural customer queries related to last mile information.MMFSL required a software system which is efficient, scalable, and available anytime, anywhere, to take care of all processes including inquiry management & loan processing. As the business expanded, the need for loan application was felt to reduce the turnaround time taken from inquiry generation till the loan disbursement. So we built the loan disbursement application called EMLAP.

The solution has increased revenue by 41%! What are the other benefits of
this implementation?

Innovation is the key mantra of MMFSL and effective usage of technology is the key differentiator for us. Mahindra Finance is perhaps the only organization in NBFC segment which has automated its entire manual collection process. Mf-ME-Alam offers capabilities to take Mahindra Finance live branch to customer doorstep to provide services at lighting fast speed & eliminates manual processes. The implementation has empowered our executives in several ways. The solution offers customer service at door step and disburse loan in 2 hours. It eliminates duplication of data capturing efforts at back office. Expectation from both customer / user has increased post-implementation. Plus there is customer delight and employee satisfaction.

They have developed Enquiry Management Loan Application Processing (EMLAP) on on open source architecture. The app captures data directly into the system at various sources thus avoiding duplication of work. The enterprise solution is integrated with messaging, MMFSL WEB, DMS, email, photo gallery, fingerprint de-dupe, entity data de-dupe, CIBIL, existing legacy applications, multilingual correspondence printing, Google Maps, etc. This is accessible to dealers, customer & all entities related to the business and keeps them updated on the status of any deal that is flown into it. Also, EMLAP is integrated with all Indian languages making it possible to communicate with his customer in his own regional language.

The hardware they used include customized Linux based handheld device, Sun server m5000, Windows Server for web hosting. The software used include C, C++ , J2ME , Android and SQLite Database, and Oracle weblogic

The End Result

With this implementation, business entry is happening on field on the handheld device which is integrated with application. This has done away with the manual system of data entry. Business executives don’t need to go back to office and re-punch the entire worksheet. Data collected on the field are immediately uploaded thus making decision faster and disbursing loan within 2 hrs.

Financial Impact

Prior to implementation of EMLAP, Mahindra finance legacy application was on 2-tier application (client & server architecture); it had its limitation of scalability. It was unable to match up the pace of business company was marching towards. EMLAP is scalable to ‘N’ times. Previous system was supporting a maximum of 18-25K business, post implementation the system is capable of doing 50K-60K business without any bottleneck hence increasing the top line of the company. It has played a vital role in improving company’s top line. The revenue has increased by 41% as of December 2011.

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