A path-breaking ingress into the education sector, institution of three new branches, a speedy digitization of the loan process and creation of fifty competent jobs – that’s what MS Fincap, the upcoming NBFC in Rajasthan was able to achieve in the five month long restraint business period due to COVID 19. Now, these numbers might seem small, but they appear big enough if we keep in sight the fact that this company is barely three years old and operates in the most uncertain industry right now that is the finance market.
Winston Churchill once said, “Never let a good crisis go to waste.” Unfortunately, few have been able to take advantage of the sluggard economy in context of the pandemic. “It took a while to move beyond denial and accept that businesses across the globe have been hit but at the same time we were collected enough to fathom that this is the time that every visionary entrepreneur eyes to be able to write the sequel of their business story.”, said Mukund and Shridhar Modi, Directors, MS Fincap.
Amidst the global distressed economic phase, MSFC has kept its hopes high with strategic partnership and expansion strategies in action. With a loan book of 115 crores, the company plans to reach 250 crores by 2022 i.e. 117% growth. This mustn’t seem too optimistic considering that NBFCs provided approximately 20% of all credit in India till March 2018 with their total asset size being over 25 lakh crores.
The quintessential part of MSFC’s future story is its venture into the education sector via a 15% stake in Financepeer, a fintech powered impact solution company that facilitates school fee payments in installments. With true purpose as the guiding light, MSFC has invested into the country’s education system, the price of which has risen in direct proportion to its quality. In an effort to save the common man from facing the brunt of these dynamics, MSFC in partnership with Finacepeer provides no-cost easy finance for education fees, keeping their core business of lending intact and leveraging the wide-spread reach of their partner. Financepeer already has nine lakh parents and 2000+ schools onboard for its innovative payment system.
At the heart of their unbridled growth approach is their young tech-savvy team that has metamorphosed the operations into a 100% transparent and automated process. There is a bigger picture to this than enhancing customer service. The 3rd gen entrepreneurs have withheld the values of family legacy business ensuring that the purpose to serve the underserved is carried with the view to help them come out of the unorganized finance debt-trap. Abandoning exploitation of their lack of knowledge, the company has utilised this time to create a completely transparent process that is cost-effective and induces trust in the semi-urban and rural borrowers i.e the unbanked cohort.
Often technology is wrongly associated with complexity, whereas the aim of it is to bring in simplicity. On the very same notion, MS fincap has tried its best to induce simplistic tech advancements comprising the launch of a customer App with super friendly interface and a separate application for on-ground sales team that digitizes the login process saving manual repetitive labour and not to mention – paper. The crux of digitisation is to bring in economies of scale which is otherwise limited by mobility and self-presence. But that has to be done without undermining the target audience’s familiarity with the tech portals. Hence, MSFC has worked on the most used social platform in India- WhatsApp and introduced a WhatsApp chatbot for filling in the loan application that is not only easy but time and place friendly.
The non – banking financial industry is growing rapidly by serving retail and MSME segments which are the backbone of India’s growth story. There are around 55-60 million MSMEs in India, contributing to about 30% of India’s GDP. NBFCs play a huge role in the growth of this sector that is seldom served by banks who find it expensive or unviable to serve these segments.
This sector had a credit demand of about INR 45 lakh crore in 2018 out of which 40 per cent was served by informal credit. As a result, there’s a big opportunity in the coming years for NBFCs to capture this unserved population. Counting on the same, MS Fincap is set to put to sea 7 additional branches by March 2021 to tap the unaccessed rural market in Rajasthan. One cannot obviously ignore competition and that’s where MSFCs USP comes into play. Always walking an extra mile to work hand in hand with the customer to work towards the upliftment of the rural society.
Clearly, the role of NBFC has become more pivotal in providing the last mile finance to the underserved & MSFC has taken on the mantle themselves. Leaving no stone unturned, MSFC invests and highly values its customer relationships. Small gestures like delivering sweet boxes to each and every customer (1000+) every Diwali has been the company culture ever since. Believing in the philosophy that little droplets of water make a mighty ocean, the company is brainstorming on micro as well as macro levels for best possible growth outcomes.
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