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Key Success Factors of Nbfcs NBFCS: 1. Technology Utilization

Key success factors for NBFCs include utilizing technology to increase efficiency and develop new products, building a strong brand image, and retaining customers. It is also important for NBFCs to continuously develop new products to meet customer needs, have skilled employees in areas like sales, credit evaluation, and collections, and establish clear goals and performance expectations for employees. Specializing in niche segments allows NBFCs to earn high yields and profits.

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196 views3 pages

Key Success Factors of Nbfcs NBFCS: 1. Technology Utilization

Key success factors for NBFCs include utilizing technology to increase efficiency and develop new products, building a strong brand image, and retaining customers. It is also important for NBFCs to continuously develop new products to meet customer needs, have skilled employees in areas like sales, credit evaluation, and collections, and establish clear goals and performance expectations for employees. Specializing in niche segments allows NBFCs to earn high yields and profits.

Uploaded by

devrajkinjal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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18.

Key Success Factors of NBFCs


NBFCs
1. Technology Utilization
Gain a competitive advantage in technology. The company that utilizes technology to open
up new markets serve customers, increase efficiency and new product and service
development has the better chance of besting competition. Use virtual production to automate

NBFC

most facets of loan production or partner with processing outsourcers. NBFC with
streamlined processes can maintain lower production costs which, combined with servicing
revenue, will generate greater overall profits on lower retail pricing.
2. Brand Image
Getting both your employees and customers to recognize and buy into your brand is a key
success factor. You must implement and communicate what your brand promises and
delivers to clients based on their challenges, needs and feelings when it comes to take loan,
loans against share, Financing of specialized equipment needs. At the same time, you need to
encourage management to understand the importance of establishing your brand through
identifying and educating your target market as to the importance of buying financial services
from your company rather than from a competitor.
3. Customers Retention
In any industry, a company is successful if it can retain its key customers. A proactive and
aggressive company does not become complacent after getting the big contract; it works to
keep it. Develop new ideas based on the needs of your larger clients to keep them interested
in doing business with your company. If your company cannot retain its top clients from year
to year, staying successful will become increasingly difficult.

4. Product Development

A Study on Non Banking Financial Companies in India

Whether you sell a tangible product or a service, if you do not keep up with the changes in
your marketplace as dictated by your customers, you cannot survive. Being first to market
and staying ahead of the competition is always ideal in trying to maintain your market share,
but it is not always achievable. At minimum, you need to make sure you are keeping up with
the demands of your industry and are consistently recognized as a company that stays on top
of product changes.
5. Sales and customer support

Understanding of products offered by the NBFC.

Knowledge of RBI rules and guidelines applicable to NBFC.

Ability to convince to buy from NBFC.

Good communication & motivation skills.

6. Credit appraisal and evaluation


Ability to decide what percentage loan to offer to the customer based on the customers
ability to repay the loan.
Ability to check the standing of guarantors provided by the customer.

7. Collections and recovery

Ability to keep track of collections being receivable from customers.

Ability to segregate customers into various categories based on their level of default
and take appropriate actions for collections.

8. Product design

Ability to track the market and study what auto loan products are being offered by
competitors.

Ability to design loan products addressing needs of customers according to their


profile and the product being purchased.

Ability to build in maximum profitability in designed loan products.

9. Others

Establish clear goal alignment from executive, business unit or regional, down to
individual branch employees.
A Study on Non Banking Financial Companies in India

Provide managers with the tools to offer consistent and meaningful feedback making
it possible for employees to meet and exceed performance expectations.

Instil a pay-for-performance culture leading to higher levels of employee engagement


leading to greater employee retention and higher productivity.

Identify and develop key retail banking, financial advisory and any other specific
skills or competencies needed to achieve company objectives.

Ability to manage the credit quality through strong local knowledge, close access to
customers and a strong focus on recovery and collection efforts.

Ability to penetrate into the niche segments and specialisation enables NBFCs to
command high yields that translates into high profitability.

A Study on Non Banking Financial Companies in India

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