In the present economic system of India, Non-Banking Financial Companies have a significant role in providing accessible and affordable financial services. Because of the consistent neglect by the banks of non-salaried Professionals, individuals, traders, transporters and stockbrokers, and the ongoing stress in the public-sector banks due to mounting debt, NBFCs have a lucrative opportunity to expand their presence in the Indian financial sector, more specifically the underserved. The latent credit demand of an emerging India will allow NBFCs to fill the gap, especially where traditional banks have been wary to serve.
With over 60000 satisfied customers across districts in Gujarat and Rajasthan, Light Microfinance aims to become the leading Microfinance products and services provider in India. Light is managed by a passionate, high integrity dynamic team of professionals with a keen focus on tech-enabled delivery of extremely relevant products in a cost-effective and risk-managed manner.
An Ingenious Leader of Light Microfinance
With an unparalleled passion towards building strong dependable teams through right empowerment and enablement of people, Rakesh Kumar, CEO is one of the founders of Light Microfinance. He brings with him invaluable field experience of setting up microfinance operations from the ground up and scaling it to multiple states. He has extensive knowledge of building, coordinating and leading teams, installing systems and setting complete work processes and procedures in large successful organizations.
Rakesh received his Master’s degree in Rural Management from Institute of Rural Management, Anand (IRMA). Before joining Light Microfinance, Rakesh worked with SKS Microfinance (now known as BFIL). He played a key part in its rapid growth by launching and expanding operations in seven states across North India creating a customer base of over 150,000 and a robust portfolio of over INR 100 crores ($25MM). Prior to SKS, Rakesh was engaged in market development for an educational institute and publication house.
Distinctive Services for Nourishing Financial Needs
Light Microfinance aims to become the most valued financial service provider to the rural and semi-urban population. The company currently focuses on broad-basing its micro-credit business through Joint Liability Group (JLG) model while developing capabilities to bring more products and services to its customers.
Light has started an operation with the most basic microfinance product i.e. microcredit. The company’s loans are targeted towards income generation activities and can range from Rs. 5,000 to Rs. 60,000 as per customer requirement. The product can be one year or two years long and is repaid in equal monthly installments.
Light Microfinance believes in building customer centric processes and empower its women borrowers through financial literacy inputs delivered as part of the easy and transparent loan application process. With the aim of giving excellent customer experience, the Company continues to invest in technology for further enabling its rigorously trained manpower.
Rough Sea made a Skilled Sailor
Every organization goes through ups and downs when it is trying to establish itself. Light Microfinance was born out of the conviction that microfinance needs to change and as a starting point, the credit transaction must be reinvented to empower and enable the customer. It is this passion and commitment to innovate, driven by fierce integrity and an aptitude to persevere against the stiffest odds is what has allowed Light Microfinance to come out stronger from two industry shaking macroeconomic crises.
In these times of crises, the leadership team stood its ground and made the intent clear to the team through continuous communication and worked hard with the team to chip away the risks created in the ecosystem. Light Microfinance was one of the first MFIs to build an in-house GPS enabled end-to-end mobile app in 2014. At the same time, they maintain a keen focus on innovations that are driven by effective capital utilization.
Converting Challenges into Opportunities
The Indian consumer is increasingly adopting digital technology as a way of daily life. To stay relevant in such environment, NBFCs need to rethink their strategy to enhance their product portfolio. Additionally, they need to leverage the vast digital customer data for better customer services. With the launch of the Digital India Programme, NBFCs must find ways to serve the millennial customers through digital means.
With the launch of government-backed schemes such as the Pradhan Mantri Jan-Dhan Yojana, there has been a substantial increase in the number of bank accounts. The government and regulatory bodies have taken decisive steps to increase the number of a bank account by granting in principal licenses to many players to establish banks over the coming time. The introduction of specialized players and systems will truly transform the banking value chain in its entirety, presenting a strategic opportunity for NBFCs to ensure sustainable growth over a long term. The reach of Light Microfinance, along with their strong understanding of the market can help the company to position themselves as a better alternative to the traditional ways of banking.
Looking Into the Future
The underserved segment presents a huge opportunity and good returns for committed players who focused on quality delivery backed by right innovation. Light Microfinance wants to become the most preferred financial services provider to the underserved segment and has always focused on bringing more value to its customers.
The organization is already working towards adding few such aspects to its business model to further enhance the household income and a standard of living of its customers through new credit options, healthcare, employment, and skilling initiatives.
Source :-The 10 Most Admired Non Banking Financial Companies In 2018
Light Microfinance: Empowering Rural & Semi-Urban Entrepreneurs through Innovative Financial Services
