Microfinance institutions (MFIs) in India have been instrumental in empowering people from remote and rural areas with microloans.
According to a survey from KPMG⁽¹⁾, machine learning (ML) and alternate data capabilities will disrupt the microfinance sector by serving as major differentiators in sourcing and improving asset quality. It also stated that the future landscape of microfinance will be driven by digital.
Today, MFIs use multiple tools like CRM, loan origination systems, and connected enterprise architecture to scale their business and manage field operations. However, most of them are looking for ways to improve market penetration, expand customer coverage, and orchestrate debt collections. Typically, agents visits are not optimized enough or lack the bandwidth to meet individual customers regularly as they are more focused on group meetings; hence may lag in meeting the aforementioned business outcomes.
Location-powered field sales software like Dista Sales helps MFIs expand market penetration by improving territory management. Let’s learn more about it.
1. Redefine Territory Management
Along with collecting debts, MFIs are also focused on increasing customer coverage. However, if the territory management of targeted areas is done manually or without considering the location component, it can result in poor customer engagement. With big territories, the agent travels longer distances to meet customers far away from each other.
The AI/ML system in Dista Sales creates small territory clusters, and all centers in the clusters are mapped to a single field agent. With smaller territory clusters, the agent meets more customers, travels fewer kilometers, and knocks more doors in a day. The agent can conduct center meetings for a few days a month and focus more on engaging with individual loan customers with frequent visits.
2. AI/ML-powered Simulations
Our field force management software uses data including the number of branches and centers, number of routes, field agents needed, travel time, number of days in the field, and more. The system runs multiple simulations focusing on the above business constraints to optimize the orchestration of field agents.
It considers variables like branch to center, agent to center, center to meeting date and runs simulations to recommend the best plan that uses fewer agents in the field, reduces their travel time, and takes fewer days to meet more customers.
3. Dynamic Route Optimization
The Dista system creates beat route plans that consider group loan customers and helps agents plan their day and conduct meetings. Moreover, it interlaces individual loan customers, P2P customers, delinquent customers, and general meet-and-greet customers in the original beat plan to create a new schedule.
The system dynamically recommends which customers to meet based on how the field agent’s day plan progresses. This helps MFIs improve market penetration and tap more customers in a specific area.
Final Thoughts
MFIs heavily rely on smart beat plans to improve daily customer meetings and debt collection. However, they are also looking for opportunities to enhance market penetration. Using a location-driven field force management platform, helps agents optimize field operations and meet individual loan customers more frequently. This results in stronger customer engagement and helps them with better upsell/cross-sell opportunities.
Location-first field force management software like Dista Sales has been instrumental in helping leading microfinance firms expand customer coverage and boost market penetration. Get in touch with us to see how our platform can help you with your market goals.
Source: KPMG
