Microfinance industry recorded a growth of 51 percent year-on-year in the second quarter of 2018-19 with total Gross Loan Portfolio (GLP) standing at INR 1,46,741 crore. Microfinance institutions, banks, regulators, government agencies, grassroots organizations: all participate in delivering credit to the poorest sections of India.
The existing structure that delivers micro-credit is fraught with multiple inefficiencies. It is complex and has a multi-layered delivery structure that is expensive and lacks transparency. In addition, information flow is unidirectional and static, documentation is largely manual and processes are taxing. Each lender has their own parallel delivery structure into the same markets or customers leading to further redundancies. Thanks to these operational inefficiencies, MFIs spend over 70% of their operations costs on collections. All this makes it difficult or unfeasible to serve India’s masses with reliable banking opportunities.
Solution
The New Street Technologies’ platform aims to disrupt the last mile delivery of financial services through a customer-centric, digital platform. In addition to radically improving the delivery of existing financial services, New Street Technologies has the potential to provide banks with access to new market segments. The company’s flagship platform – MIFIX brings together, banks, business correspondents and cash outlets to efficiently originate and manage credit through easy integration with existing systems and processes.
Impact
Since inception, the New Street Technologies platform has enabled loans worth INR 15.6 crore to more than 5,200 borrowers.
Sajeev Viswanathan, Chairman & CEO
