Arohan Financial Services introduces a digital lending app, ApnaArohan, aimed at existing customers with strong repayment histories, projecting a significant increase in their loan portfolio and enhanced operational efficiency.
KOLKATA – Arohan Financial Services, a non-banking financial company and microfinance institution (NBFC-MFI), has launched a new digital lending application, 'ApnaArohan'. The app targets the company's existing customer base with a proven track record of consistent loan repayments. The initiative aims to provide these customers with a banking experience akin to 'privilege banking', according to an official statement.
In addition to improving customer experience, the launch of ApnaArohan is strategically aimed at enhancing the company's 'collection efficiency ratio'. The app enables customers to make repayments and conduct other transactions digitally, reducing the need for in-person interactions with loan officers – a crucial adaptation in the wake of the COVID-19 pandemic's impact on business operations.
Arohan Managing Director Manoj Kumar Nambiar emphasized the 'first-mover advantage' the AI-powered app provides to the microfinance company. He anticipates that ApnaArohan will contribute to an increase in the company's outstanding portfolio from Rs 4,500 crore as of June 2022 to approximately Rs 5,100 crore by the end of the current fiscal year. Nambiar also noted that the app will facilitate the complete digitalization of the MFI's disbursement and collection processes.
The COVID-19 pandemic had previously impacted Arohan's collection efficiency ratio, causing it to dip from pre-COVID levels of around 99% to between 60-70%. However, the company official stated that the ratio has since stabilized at around 95%.
Arohan Financial Services, backed by the Aavishkaar Group, is also developing a credit scoring model, which is currently in beta testing. The MFI has been operating on a core banking platform since 2017.
Furthermore, the company plans to raise Rs 1,800 crore from the market. Key investors in Arohan include the Michael and Susan Dell Foundation, Aavishkaar Goodwell Fund II, and Tano Capital.
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