IFFCO Kisan Finance was established in December 2017 and promoted by the Indian Farmers Fertiliser Cooperative Limited (IFFCO). It is dedicated to advancing financial inclusion in rural India. Under the leadership of CEO Anjaneya Prasad Prabhala, the company today has served over 1 lakh customers across 9 states, offering a range of agricultural loans and financial services. The NBFC has a dedicated team of 1400 employees.
Leveraging IFFCO’s 50+ years of experience, IKF has made significant strides in customer engagement, digital channels, and operational efficiency, ensuring sustainable growth while upholding ethical and transparent business practices.
FRONT OFFICE UPSHIFTS
Upshift No. 1 – Enhancing Existing Customer Business: IFFCO Kisan Finance has shifted its focus from primarily acquiring new customers to leveraging the potential of existing customers. By staying in continuous contact with these customers and conducting upfront credit assessments for limits, the company has significantly boosted its business from current clients.
Through scheduled interactions and tailored offers on their field force application, the company has increased its existing customer business from 2% to 10% of the total. Anjaneya Prasad Prabhala, CEO of IFFCO Kisan Finance sees opportunity emanate from assets financed by the company and by other financiers for requirement of new assets. This strategic shift has led to a more well-rounded approach to customer engagement.
Upshift No. 2 – Digital Channel Sourcing: As online searches for products such as tractors have surged, IFFCO Kisan Finance has tapped into this digital opportunity by partnering with aggregator platforms. Around 8 million customers research products through these platforms each month before making a purchase decision. The company now collaborates with these platforms to allow customers to generate loan offer letters on the website itself. Over time, this has led to consistent growth in business from digital channels, which now account for 5% of the company’s total business.
BACK OFFICE UPSHIFTS
Upshift No. 1 – Digital Field Investigation: In the past 2 years, IFFCO Kisan Finance has significantly digitized its risk management processes. The organization shifted field investigations (FI) from paper-based forms to a fully digital format. These digital forms now include a predesigned questionnaire covering demographics, income, and transaction clarity, all of which are scored by the field officer. “The FI also has a start time and end time tagged with the geo coordinates of the customer,” said Anjaneya. Additionally, tele-verifications conducted by credit officers are now system-initiated, recorded, and scored using similar methods, further streamlining the risk mitigation process.
Upshift No. 2 – Credit Risk Framework Overhaul: The organization also overhauled its credit risk measurement and governance framework. This new system has improved the organization’s ability to analyze and identify potential problem areas. By using tools like static pool analysis and establishing triggers and thresholds at the portfolio level, the company has achieved 50% reduction in early delinquencies.
BRAND UPSHIFTS
Brand Upshift No. 1 – Rebranding with IFFCO Name: In the last 2 years, one of the most significant branding changes at IFFCO Kisan Finance has been the incorporation of the IFFCO name into its company branding. The shift from ‘Kisan Finance’ to ‘IFFCO Kisan Finance’ has allowed the company to leverage the trust and credibility associated with the IFFCO brand.
“With over 40 million farmers as members, IFFCO has grown to be the largest cooperative in the world. Its name added to us will put us in the consideration set for all the farmer members and their networks,” said Anjaneya. This branding evolution has strengthened the company’s market presence and enhanced its outreach to farmers.
Brand Upshift No. 2 – Social Media Outreach: Another key initiative has been the company’s efforts to strengthen its social media presence. The company has been actively building its social media outreach to foster potential partnerships, engage with customers, and generate leads. This strategy has allowed the company to connect with a broader audience, amplifying its brand’s digital footprint and engagement levels.
HR UPSHIFTS
HR Upshift No. 1 – Field Force Tracking & Management: One of the most significant HR initiatives undertaken by IFFCO Kisan Finance in the past 2 years has been the implementation of an app-based field force tracking and performance management system. With 80% of the workforce being frontline employees and a limited branch presence, it became essential to ensure organized induction, training, and performance reviews remotely.
The app tracks field activities such as visit coverage, intensity, and schedule adherence, providing supervisors with a clear view of lead indicators and business output. Even performance improvement plans are managed through this system, with tasks assigned and tracked for completion. Says Anjaneya: “Productivity of the field force has been consistently growing because of this.”
HR Upshift No. 2 – Structured Training & Onboarding Process: In addition to performance tracking, the company has created a structured training and onboarding process for new employees. Before new recruits begin handling business responsibilities, they undergo thorough training on all applications and shadow an experienced employee.
This ensures that they are fully prepared for their roles. Regular check-ins have also been established at various supervisory levels to facilitate two-way communication. This approach has helped to improve overall employee readiness and efficiency, contributing to the organization’s growth and operational success.
DIVERSIFICATION INITIATIVES
Initiative No. 1 – Expanding Loan Products: Over the last couple of years, IFFCO Kisan Finance has taken a crucial step toward diversifying its lending portfolio, which was previously heavily focused on tractor lending. To mitigate concentration risks, the organization has introduced new business lines, including used commercial vehicle lending and MSME lending. These initiatives have begun yielding results, with 20% of the fresh business now coming from these newly added products.
Initiative No. 2 – Exploring Supply Chain Financing: The company has also launched pilots for supply chain financing, further broadening its product suite. This venture into supply chain financing is part of the company’s efforts to explore high-potential areas in the market, positioning itself as a versatile lender.
Initiative No. 3 – Leveraging Partnerships & Digital Channels: Another key diversification strategy has been the expansion of business sources through partnerships and digital channels. The company has capitalized on IFFCO’s extensive network of over 30,000 touchpoints to drive direct customer sourcing. Says Anjaneya: “We have been working on leveraging these touchpoints to increase our business reach.”
LEGAL/COMPLIANCE UPSHIFTS
Upshift No. 1 – Strengthening Litigation Management Frameworks: In the recent 2 years, IFFCO Kisan Finance has significantly enhanced its litigation management process to address sticky debt more effectively. The organization has built specialized frameworks tailored to various customer segments, taking into account factors such as the most effective litigation tool in specific geographies, communication content, and delivery modes.
Upshift No. 2 – Litigation Management Software Integration: To further strengthen its litigation efforts, the company has been working on integrating its loan management system with dedicated litigation management software. This integration will enable better orchestration and tracking of litigation frameworks, resulting in improved efficiency. Says Anjaneya: “We hope to see resolution in sticky debt improve by over 50% in the near term.”
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