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Muthoot Finance bets big on digital

The average value collected per day through digital transactions stood at Rs 20 crore.

Muthoot Finance bets big on digital
Collectively, the company has managed to transfer 40% of its gold loan transactions to online.

Kerala-based gold loan major Muthoot Finance has said that it is betting big on the digital front, and the company has managed to clock over 9.5 million digital transactions in volume and Rs 8,000 crore in terms of value so far. The digital transactions include the company’s gold loan disbursals and repayments, which have been facilitated through the integrated iMuthoot App.

The iMuthoot application has witnessed more than 1 million downloads as of November-end 2022 and the average number of digital transactions stood at 30,000 in November 2022. The average value collected per day through digital transactions stood at Rs 20 crore. Collectively, the company has managed to transfer 40% of its gold loan transactions to online.

Also Read: Muthoot Finance Rating: Buy | Better times ahead for the company

KR Bijimon, executive director & COO, Muthoot Finance, said, “We have set up a strategic IT division named Emsyne, which engages in developing and deploying new trends in digital technology. We have seen the pandemic forcing us to make rapid strides in technology, and we had anticipated the disruption that digitisation would bring in our consumer preferences, and also the banking sector in particular. As such, the company has managed to transfer 40% of its gold loan transactions to online and we will continue to further strengthen our digital strategy.”

Also Read: Muthoot Finance launches its latest ‘Put your Gold to Work’ campaign

The company expects to attain more operational flexibility under the revised scale-based regulatory framework of the Reserve Bank of India (RBI). In the recent list announced by the RBI, Muthoot Finance was included among 16 upper-layer NBFCs by under a scale-based regulatory framework for NBFCs to elevate its status in line with several other public sector NBFCs. Through this classification, the company has become the only Kerala-based NBFC to enter the upper-layer classification by the RBI.

Muthoot Finance deputy MD George M George said, “The inclusion in the upper-layer list by the RBI is expected to be a huge value recognition for the company and our stakeholders. We consider that this acknowledgement will enable us to positively contribute to the economic growth of the nation. We are expecting the classification to bring operational flexibility. We are further optimistic to leverage the massive opportunity in the gold loan industry.”

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First published on: 17-12-2022 at 03:15:00 am