SKS Microfinance to introduce business intelligence unit for faster turnaround

Written by Kavitha Venkatraman | Hyderabad | Updated: Apr 9 2009, 04:00am hrs
SKS Microfinance Pvt Ltd, one of the fastest growing micro finance organisations in the country, is in the process of creating a business intelligence unit to ensure faster turnaround for the benefit of its customers.

The MFI, which has so far disbursed over Rs 6,000 crore and has an outstanding loan of Rs 2,500 crore, is also planning to offer home loan products to its customers.

According to Suresh Gurumani, chief executive officer and managing director of the company, information technology has been one of the key drivers for growth of the company.

IT initiatives taken so far have helped SKS eliminate manual labour to a great extent and have also improved efficiency levels within the organisation. What we are now looking at is backend information management. We are setting up a data warehouse where all information will be captured and consolidated. This initiative will help us to a great extent. For example, if bankers seek information on some portfolio or if there is any sector related query, with this data warehouse we will be able to generate information at the click of a button. Preparation of standard reports will also be a whole lot easier, he said

Besides, this will also help in understanding the risk management angle of various products. Using various advanced tools, the data warehouse will be able to analyse all the information available and give a clear picture on the implications of a risk profile.

For instance, when the company introduces a product, the data warehouse will be able to project a risk management angle of the product and also help in pulling out details on eligible customers, based on their credibility, he said. The idea behind this move is to reduce the time taken to make decisions. This business intelligence unit would be the first of its kind in the MFI segment. Trials are on and within the next 30 to 60 days, it should be ready, he added.

Gurumani also added that based on the feedback from customers, the company is also planning to introduce a housing loan product very soon. The pilot project is on in the state of Andhra Pradesh and within the next 60 days it should be rolled out.

The risk profile of a housing product is completely different because of the size and tenure of the loan. So, we are putting together all the key details, including the interest rate. Depending on the results of the pilot scheme, we will look at extending the scheme to other regions as well, he said, adding that the company is targeting a Rs 30-crore portfolio from the product during the pilot phase.

Customers who have demonstrated a good track record would be eligible for the product. Ideally, loan sizes will be in the range of Rs 50,000 to Rs 1,50,000.

IT initiatives taken so far have helped SKS eliminate manual labour to a great extent and have also improved efficiency

Trials for the business intelligence unit are on and within the next 30 to 60 days, it should be ready

The pilot project is on in Andhra Pradesh and within the next 60 days it should be rolled out