{"id":19872,"date":"2023-09-13T12:32:41","date_gmt":"2023-09-13T07:02:41","guid":{"rendered":"https:\/\/www.kanakkupillai.com\/new-learn?p=19872"},"modified":"2026-04-03T18:31:51","modified_gmt":"2026-04-03T13:01:51","slug":"automation-and-value-added-services-for-nbfc","status":"publish","type":"post","link":"https:\/\/www.kanakkupillai.com\/learn\/automation-and-value-added-services-for-nbfc\/","title":{"rendered":"Automation and Value-added Services for NBFC"},"content":{"rendered":"
The Non-Banking Financial Companies (NBFCs)<\/strong><\/a> have continued integrating automated and value-added services that have largely been interpreted into improved customer journeys.<\/span> The ability of automation to increase efficiency, minimise human errors, and reduce complexity in the delivery of services increases service quality.<\/span>\u00a0On the contrary, value-added services give NBFCs the means to turn the tables, and having advantages over competitors, it appeals to more customers by extra benefits and characteristics.<\/span><\/div>\n
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By seamlessly integrating automation and value-added services<\/strong>, NBFCs can offer swifter, tailor-made solutions, ensuring their relevance and competitiveness in the evolving financial realm. Let\u2019s delve deeper into the intricate dynamics of automation and value-added services for NBFCs.<\/span><\/p>\n

What Does Automation Mean?<\/b><\/h2>\n

Automation encompasses using technology to perform tasks requiring minimal or no human intervention. This encompasses diverse realms such as business process automation (BPA), IT automation, network automation, system integration automation, industrial robotics, and consumer applications like home automation.<\/span><\/p>\n

Automation involves harnessing technology to produce goods and services while minimising human involvement efficiently. Formerly manual tasks are now executed with heightened productivity, reliability, and speed due to automation techniques, technologies, and processes. Industries ranging from manufacturing, transportation, utilities, and defence to facilities management and, more recently, information technology have all embraced automation to varying degrees.<\/span><\/p>\n

How Does It Contribute to NBFC Advancement?<\/b><\/h3>\n

Automation-driven optimisation initiatives are pivotal in enhancing NBFCs\u2019 client relationships. Amidst stringent regulations that have escalated borrowing costs, automation helps NBFCs narrow their focus on specific markets and allocate resources wisely for tailored offerings. The goal is to adapt to evolving market dynamics while maintaining a competitive edge.<\/span><\/p>\n

Modern NBFCs embrace advanced technologies to establish collaborative ecosystems spanning lead generation, client onboarding, underwriting, credit\/loan disbursal, and collections. Process automation is ushering in an unprecedented level of operational agility. Machine learning (ML), Artificial intelligence (AI), and big data enable lenders to glean nuanced consumer insights and develop alternative credit assessment models.<\/span><\/p>\n

Automation in NBFCs is ushering in novel roles:<\/b><\/h3>\n

Personalised customer experiences have always been a priority for NBFCs<\/strong><\/a>. Automation elevates this commitment by debunking the \u2018one size fits all\u2019 approach to customer evaluation and credit policies. Employing technology, a tailored credit evaluation approach offers current and potential clients curated experiences. This inadvertently diversifies the customer base through astute market segmentation.<\/span><\/p>\n

Data monetisation is crucial for NBFC resilience against disruption. Analysed data sheds light on consumption patterns. When translated into intelligent tools, it acts as an aide to human decision-makers, expediting accurate decisions and system implementations, thereby boosting NBFC profitability.<\/span><\/p>\n

Addressing cyberattacks and identity theft concerns has been an ongoing challenge for NBFCs. Innovative technology assuages these concerns, building customer trust in automated processes over manual ones.<\/span><\/p>\n

In India, Aadhaar-based KYC spearheads digitisation by anchoring digital footprints with biometrics. Recent government initiatives like Jan Dhan Yojana, Aadhaar, and UPI have provided numerous NBFCs with a robust foundation. This empowers them to cater to nationwide demands, proving invaluable during the pandemic-induced constraints, staff shortages, and disrupted supply chains.<\/span><\/p>\n

Enhancing Value with Supplementary Services<\/b><\/h3>\n

Value-added services encompass supplementary features a company provides alongside its core products or services. While marketing and delivering a specific offering, businesses can enhance their propositions through various means, offering customers added benefits for their investment. By improving the original offering, companies can boost revenue, attract new customers, and broaden their reach. These services include recognising consumer needs and providing practical solutions to create value-additions.<\/span><\/p>\n

Value-added services are often extended to customers at no extra cost. Providing complimentary goods and support can elevate customer experience and satisfaction. Examples of resources that contribute additional value before and after purchase include:<\/span><\/p>\n