Mallika Mittal, CRO at Mahindra Finance, shares the details about the popular products, geographies among the new to credit customers & company’s strategies to reach them:
Ravi Lalwani: What has been your organization’s performance in acquiring New To Credit (NTC) Customers in FY 2021-22? Which of your products are popular among NTC customers?
Mallika Mittal: Focused on the rural and semi-urban sectors, the company is a leading vehicle and tractor financier. In FY 2021-2022 the acquisition in the NTC segment was 38%. The NTC segment was historically difficult to assess because they have no formal credit history. Mahindra & Mahindra Finance Service Limited (MMFSL), has deep roots established in rural and semi-urban sectors and we are the leading vehicle and tractor financing NBFC in India. Products such as farm equipment financing, pickup vehicles (commercial), sub-one-ton carriers and passenger vehicles have a good concentration of NTC customers.
Which are the top 3 regions where you are acquiring the most NTC customers?
MMFSL has over 8.4 million customers with 1386 offices and reaches out to 380,000 villages and 7000 towns across the country. We have seen NTC concentrations from UP, MP and Bihar.
Through which channels are you attracting the maximum number of NTC customers?
MMFSL has a wide network of 1386 branches, the acquisition is mostly done through direct marketing teams, DSAs, and dealers. The organization firmly believes in harnessing the business potential of rural and semi-urban markets. These markets predominantly have high concentrations of NTC base.
Briefly describe the organization’s initiatives in terms of marketing, partnering, technology, analytics, etc, to tap NTC customers.
MMFSL has the strong support of the ‘Mahindra’ brand and leverages its ecosystem. The firm has diversified its product portfolio with new-age products such as digital finance and leasing with effective use of tech resources. Next-gen system integrations and API have been commissioned for scaling the partnerships thus enabling us to integrate with the fintech ecosystem. Bureau-based analytics are used to monitor the performances of NTC, ETC customers which in turn help us to draft new policies and programs to enhance the product offering. The use of demographic information backed with AI-based rule engines helps in the effective underwriting of the NTC segments.
