Spandana Sphoorty on why digital is the way forward
The company's MD & CEO, Shalabh Saxena shared insights into the company's strategic shift towards digital collections and its ambitious plans.
Shalabh Saxena, MD & CEO of Spandana Sphoorty Financial believes the way forward for the company involves a significant shift from traditional physical collections to a digital-first approach.
“We insist on physical collection so that the customer comes to the centre meeting. Our experience has been that if you give that option to the customer, they stop coming. So, there is some discipline that needs to be installed. But yes, the way forward will be digital collections. At this point, we are all physical,” he said.
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He further added that digital alternatives are available for customers unable to be present at the designated time, such as those who have relocated or are in a different location, although such instances are relatively uncommon.
However, all disbursements were entirely digital, and directly credited to the bank account, eliminating any involvement of cash.
Saxena outlined the company's proactive approach to risk management, stating that the company tracks customer leverage meticulously before extending lending and this ensures a robust risk management system, safeguarding both the customers and the financial health of the institution.
Saxena said there is a downward trend in cost of borrowing benefiting both the institution and our borrowers. "This helps to provide affordable financial solutions to a broader segment of the population," he said.
Spandana Sphoorty Financial is a mid-cap company (with a market capitalisation of ₹7,253.75 crore) operating within the NBFC sector.
For the entire interview, watch the accompanying video
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