Implemented cash collection module across 15 states with 50% growth MOM

Background

Svatantra is a next-gen micro finance entity offering differential banking solutions. Svatantra constantly leverages technological innovation in order to bank the unbanked.

Their aim is to encourage entrepreneurship where traditional banking systems cannot penetrate. They achieve this through  holistic financial and non-financial offerings, with micro-credit being the main focus. Svatantra is one of the first micro finance institutions to receive the Non-Banking Financial Company – Micro finance Institution (NBFC-MFI) license from the Reserve Bank of India. Also, rated A+ (CRISIL) and graded M1 (ICRA) company.

Currently, Svatantra is present in 15 states with 450 active points.

Challenge

Svatantra services clients in the most rural parts of India. Their biggest challenge is timely cash collection and deposits. 

Their cash collection team had to collect EMIs from remote corners and deposit the cash in bank. They were either unable to complete the day’s collection due to geographic spread of customers or failed to deposit cash at bank within banking hours. Cash rotated on intra-day basis and sometimes up to 3 to 4 days during bank holidays and weekends; this led to increased cash handling risk and cash management issues.  

Solution

Basis Svatantra MFI’s collection types, PayNearby recommended 3 modules: 

  • Customer can deposit EMI directly for its respective Loan Account Number / Customer ID at the nearest PayNearby Network Partner
  • Since Svatantra, does group level lending, we enabled a convenient Group EMI collection module. Through this module, Group leaders can deposit EMIs of respective group members, based on a validation build on Group ID.
  • Svatantra’s  collection team of 1600+ agents can visit nearest PayNearby points to deposit bulk EMI amount beyond banking hours.

Results

Collaboration with PayNearby has given Svatantra deep in-roots to areas which were not serviced earlier. The collaboration has also led to high service deliverance rate in the cash collection vertical. Collection volume has increased by 50% MOM basis.