Vector Finance also bagged the prestigious SCOCH award for financial inclusion:
Vector Finance, founded in November 2018 and led by Founder and Chairman Rahul Johri, has rapidly grown since commencing operations in January 2019. The company secured its NBFC license in July 2019 and now serves over 2 lakh customers across 174 branches in 6 states. Over the past year, Vector Finance has driven significant digital transformation, leveraging technology to enhance service delivery for its MFI borrowers. With a strategic focus on customer onboarding, digital payments, and cash management, the company is poised for substantial growth. Key leadership hires and impactful HR initiatives further support its expansion and employee satisfaction.
Tech Boosts Digital Collections
Over the past 12 months, Vector Finance has embarked on a significant journey to incorporate technology into its operations, with the goal of improving service delivery and expanding its customer base of microfinance borrowers. Rahul highlights the 3 key areas to drive tech transformation: “We have rolled out tech initiatives in 3 specific areas: customer onboarding, digital payments from borrowers, and cash management solutions for cash collection from branches.” Today, more than 25% of the company’s collections occur digitally, which is more than double the industry average.
Prestigious Recognition
In addition to its technological advancements, Vector Finance has been recognized for its contributions to financial inclusion. The company was awarded the prestigious SKOCH India Award (Gold category) for its work with financially excluded women borrowers. This achievement is particularly notable, given the rigorous process of selecting awardees for the SKOCH awards. “We were the proud recipients of the SKOCH India award (Gold category, Financial Inclusion), which is an endorsement of the work being done by us for financially excluded women borrowers,” beams Rahul.
New Sources of Funding
In the last 3 years, Vector Finance has successfully tapped into new sources of debt and equity to support its expansion. The company’s strong performance over the past 6 years has attracted significant funding from global senior bankers, CXOs, and investors. Interestingly, all equity support for Vector Finance has come from family and friends, highlighting the personal trust and confidence in the organization’s mission.
“Given our performance track record of the last 6 years, we are fortunate to receive significant funding support on debt and equity,” said Rahul. This financial backing has allowed the company to expand its operations, partnering with several prominent entities under the business correspondent model.
CXO Appointments
To prepare for its next phase of growth, Vector Finance has made significant changes to its leadership team. With loan assets under management (AUM) expected to grow from Rs4.52 billion in September 2024 to over Rs10 billion in the next 18-24 months, the company has hired several key executives to drive its future strategy.
Rahul noted: “Key hires have been effected to build the leadership team – Chief Business Officer (CBO), Head – Strategic Initiatives, and Head – Quality Control are new positions.” These senior resources, including heads of institutional finance, IT, and HR, are critical to the company’s plans for scaling operations and ensuring high-quality service delivery.
Attrition Falls 40%
Vector Finance has also introduced several employee-friendly initiatives over the past 2 years, aimed at enhancing job satisfaction and reducing attrition. Key HR initiatives include creating an annual training calendar specific to each job family, extending health insurance coverage to include employees’ parents, and offering cash incentives for life events like marriage and the birth of a child.
“The employees appreciate these initiatives, and annual attrition has reduced by 40%,” Rahul remarked, emphasizing the positive impact of these efforts. By focusing on employee welfare and development, Vector Finance has been able to retain talent and build a more motivated workforce.
Key financials for the last 3 years:
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