Jul 20
Transformational Touch
Transformational Touch
LEADING think-tank and research platform – the Economist Impact – from the prestigious Economist Group has featured a case study demonstrating how the digital transformation of L&T Financial Services (LTFS) is enhancing the lives of its customers.
 
The study, released by the publication on 20 May 2022, narrates how LTFS uses digital technology to empower its loan officers to serve customers, especially farmers and women micro-entrepreneurs scattered across rural India.
 
“Our role as a lender is to provide access to funds and democratise credit. Digitisation is helping underserved communities access organised credit, rather than having them depend on the unorganised sector for improving livelihoods. Access to formal credit is crucial to stimulate growth in rural communities,” the Economist Impact report quotes LTFS’ MD & CEO, Mr Dinanath Dubhashi.
 
The report says that around 86% of India’s 10 crore farmers till only (or less than) two hectares land and they face bigger hurdles than commercial farmers to secure loans. They are often at the mercy of the unorganised loan sharks.
 
To fill this gap, in stepped LTFS, becoming a game-changer. LTFS streamlined its IT infrastructure, credit engines, analytics, communication and data storage; used Google Cloud Professional Services to overhaul legacy systems and develop a digital loan application that automatically populates customer data, resulting in faster loan approvals.
 
The initiative freed loan officers from their desks so they can broaden the client base through hybrid work. Google Workspace enabled its loan officers to collaborate even during the lockdowns. A bespoke app enabled loans for rural customers to be processed while in the field, saving applicants the trouble of trudging to application centres.
 
In the three years since adopting this in-the- field loan approval technology, LTFS’ customer acquisition has increased by 35-40%. Loans can now be approved in less than a minute and disbursed within 24 to 48 hours.
 
This transfer of money to farmers and rural women entrepreneurs is helping underserved communities become part of the mainstream through technology. Read the full report at https://econ.st/3N07crL

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