Page 43 - Banking Finance October 017

ARTICLE

HOW BANKING

INDUSTRY IS USING

AUTOMATION FOR

COLLECTING &

RECOVERING LOANS

A s Indian economy grows at a very fast rate, one they have not been deploying technology because of rising

project expenditure.
sector that is seeing tremendous growth is
banking sector. We see a huge surge in demand
for finance from small scale and large scale Manual Process of Collection Agencies
enterprises alike. Banks, credit card companies Banks / Finance companies share a spreadsheet containing
and other financial institutions give loans and advances to the list of collectibles to their collection agencies periodically.
individuals and small Businesses. There is a huge collection The team leader of these agencies then invests great deal
and recovery process that is generally outsourced by most of time and effort to segregate the data amongst agents
of the banks. This is a big Industry. depending on their capabilities.

Although most of the banks have automated Core Banking The complete cycle of recovery is done by collection
functions. Their collection process grossly remains manual, agencies, everything from making calls, on-field collection
maybe because it is outsourced to collection agencies and of payment and managing data. The data so collected is
shared back with the bank. The efforts of the agents is not
About the author recorded or is very unsystematic, therefore can be difficult
to analyses.
Limesh Parekh
The main disadvantage of above manual process is that it is
CEO of Enjay IT Solutions explains
extremely labor intensive and prone to errors. Also this kind
"We have automated more than few col-
lection agencies in Mumbai and other of process does not allow the collection agency to grow more
parts of India where there are more than than couple of hundred people because manual supervision
700+ collection agents. With new RBI and reporting has limitations. Cost is also very high because
guidelines all the calls done by banks or their agents need a supervisor or Team Leader is required for small teams of
to be recorded. Our solution has built in recording solu- 8-12 people.
tion. Plus the readymade reports save a lot of time."
Automating the Process of Collection
This is truly a Digital Transformation for Collection Pro-
cess of banks, Credit Card companies and other Non-Bank- Agencies
ing financial institutions. Now this entire process is getting automated using the next

42 | 2017 | OCTOBER | BANKING FINANCE

Sashi Publications Pvt Ltd Call 8443808873/ 8232083010