Agency:

ESAF Small Finance Bank is an Indian financial institution providing banking services and small loans in urban, semi urban, rural and rural unbanked areas

Context:

ESFB wished to re-engineer their micro-banking vertical to bring in more efficiency and improve operations. In this aspect FinValue undertook a business process assessment and re-engineering project for the vertical.

Objective:

The objective of the project was to map the existing micro-banking loan process and recommend process-related changes to improve portfolio quality, increase process efficiency and improve customer experience. The project involved tool development to observe and record “as-is” processes at branch locations, analyses of responses to identify deviations from the SOP, and creation “as-is” process maps.

Stakeholder interviews with process custodians and Banking Correspondent partners who were responsible to implement SOP were held to develop “could-be” process maps that would ensure that the process risks are addressed and integrate changes that would make processes futuristic, in line with the bank’s digital transformation agenda.

Outcome:

Based on insights from the process mapping exercise, the team also made recommendations to expand the product basket for microbanking customers, integrate technology in group management, streamline technology used for loan origination and management, and use data analytics to make credit processes more robust