Non-banking financial companies (NBFCs) have played a key role in empowering the MSME sector with suitable finance options. Artificial intelligence, location intelligence, and machine learning have been a catalyst in driving the growth of NBFCs and microfinance institutions (MFIs) and helping them improve customer satisfaction. By leveraging location intelligence, NBFCs can visualize geospatial data and derive crucial insights that help in multiple areas like market discovery, customer onboarding, debt collection, loan disbursement, and more.
As per a Boston Consulting Group (BCG) survey of more than 500 executives, 41% of financial services leaders use location intelligence for authentication and function optimization. This article lists some of the top location intelligence use cases for NBFCs and MFIs.
How location Intelligence Empowers NBFCs
Let’s take a look at areas where location intelligence can help NBFC and MFI companies improve their operational efficiency.
1. Sales Performance Tracking
A location intelligence-powered SaaS software helps field sales agents meet the customer where they are and help increase the lead conversion rate by optimizing bank agent productivity. A dedicated app for the field reps enables them to complete their tasks like digitized proof of visit, signature, KYC, photos of documents, collecting cash data, and more efficiently.
An AI-powered sales productivity platform like Dista Sales offers managers a live cockpit view of field operations. They can track team performance from a single-view dashboard, ensure field agents reach the customer first, and perform effective dynamic meetings. A transparent real-time visibility into field sales operations helps managers improve agent productivity.
2. Debt Collections
Debt collection management software is widely leveraged for the seamless orchestration and monitoring of field collection agents. It helps NBFCs and microfinance companies facilitate end-to-end debt collection processes efficiently. A dedicated app for collection officers acts as a mobile office, enabling them to finish their tasks like document collection, digital signature, and more.
The smart system offers contextual nudges to field officers for better collections coverage. Meanwhile, managers get a cockpit view of entire collections operations and team performance. A debt collections management software performs key functions like beat planning, auto case allocation, smart recommendations for successful collections visits, and more.
3. Address Cleansing and Verification
Location intelligence plays a crucial role in the address cleansing and verification process. A common challenge NBFCs and MFIs face is having many inconsistent addresses in the current database. There are several instances where customers, field executives, or 3PL agencies enter addresses in a different format.
A powerful spatial analytics software performs address cleansing and unifies them. With accurate addresses, stakeholders can facilitate service requests like document delivery and debt collection or simply maintain data in your CRM.
4. Risk Profiling
With spatial analytics software like Dista Insight, businesses can identify high-risk negative areas where customers are prone to default on loans. It performs risk profiling on previously acquired data from past collections and industry and government bureaus. The system adds data points around delinquency, missed EMIs, and more to help leaders make informed decisions regarding lending.
It also enables manual and auto grid creation to define and operate serviceable and negative areas. This helps in the credit evaluation of areas and improves real-time lead qualification. The software also allows decision-makers to slice and dice data by different categories like the type of product, loan officer, delinquency bucket, customer type, payment mode, and more to gather deeper insights.
5. Doorstep Services
NBFCs and MFIs can leverage location intelligence software to enhance customer satisfaction by offering seamless doorstep services. The system can define territory grids based on different parameters to improve customer coverage. Moreover, it assigns leads to field executives based on hierarchy and multiple business rules like proximity, priority, skill set, and more.
Offering doorstep banking services like opening accounts, collecting onboarding documents, KYC, and more helps increase customer stickiness and reach a more extensive customer base.
It is important for NBFCs and MFIs to have the right software and channels to identify delinquent clients and improve collections. With automation and location intelligence, companies can make debt collection seamless and efficient. A robust debt collection software like Dista Collect can automate your collection process and improve collection rate. Get in touch with us to know more.