Small financial banks: Embrace digital technology to stay ahead of the curve

One of the biggest challenges for small financial banks (SFBs) from a technical point of view is the lack of an automation process and the corresponding need for manual intervention. Therefore, using an integrated engagement platform is crucial for such businesses. Such a solution breaks down organizational silos, allowing for a centralized view of customer profiles and more solid communication across all channels. It also helps collect EMIs and installment payments from microbanks and personal borrowers more easily.

This is why Ujjivan Small Finance Bank decided to digitally onboard clients and partnered with MoEngage for this purpose. But the transition hasn’t been easy, as most of its customers came from unserved and underserved segments, and some lived in remote areas. So the bank partnered with some names in the telecoms space, whose outlets could be used by customers to repay their loans, with this being reflected in their accounts in real time.

Sriram Srinivasan, Head of Digital Banking, Ujjivan Bank, explains: “Prior to implementing the customer retention solution, most of our customer communication was done manually. After implementing MoEngage, the bank was able to eliminate additional staff dedicated to business operations, optimizing response time and driving revenue growth.”

In addition to improving operational efficiencies and resource utilization, the bank’s marketing teams were able to reduce their reliance on database teams because customer and campaign data was readily available on MoEngage. “The teams also found that using push notifications as a communication channel was economical, which contributed to an efficient ROI and contribution to the bottom line,” he says.

Ujjivan Small Finance Bank has attracted approximately 2,00,000 unique customers to digital payments, collecting more than Rs. 123 billion in EMIs in just five months and increasing the conversion rate from digital channels from 2% to a whopping 18%. The martech stack and engagement solutions have also helped the bank stay ahead of the competition.

Yash Reddy, Chief Business Officer, MoEngage, says: “Due to the seamless product and use case customization on the Ujjivan Small Finance Bank side, there were no major implementation issues. In fact, the infosec team’s concerns were addressed immediately to avoid hiccups in the integration processes. End-to-end support from the customer service teams made the integration seamless.”

  • Bank onboard approximately 2,00,000 unique customers for digital payments
  • Conversion rate from such channels increased from 2% to 18%
  • The solutions have also helped to stay ahead of the competition

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