Arohan Financial Services Limited has partnered with Document Infrastructure Platform – Leegality – to digitally transform JLG loan paperwork processes for its customers. Arohan – a leading NBFC-MFI with operations in financially under-penetrated Low-Income States of India – views this partnership as a natural continuation in its mission for ‘Cashless at the front and Paperless at the back.’ By using Leegality’s customised solution, Arohan Financial Services Limited has seen a savings of 300+ man-hours PER DAY across 700 plus branches through the Zero Paper JLG Loan process.
Microfinance in India is adapting quickly to technological shifts in the financial sector. Increased connectivity and technological innovations can boost growth, expand opportunities, and improve service delivery. Microfinance has the potential to be a key driver of financial inclusion and development in rural and Tier 3/4 urban areas in India. Microfinance operations, however, pose logistical and operational challenges due to their nature – in particular, the disbursement and processing of paperwork. Technology can help reduce these challenges – and make microfinance easier to manage.
A high reliance on physical paperwork resulted in several challenges for Arohan Financial Services, such as:
· Printing all loan application forms, KYC documents, and identification documents for verification.
· Maintaining records according to RBI mandates
· Transportation and courier costs
· Manpower for physical verification
Investing in these aspects was costly and time-consuming for the company. The company was seeking a solution that could reduce its paperwork and provide an easy-to-use platform for employees and customers to effortlessly adapt. Leegality designed a customized solution to accommodate both remote and branch-led (assisted) execution of JLG loan paperwork by Arohan. Leegality’s Secure Virtual Signature, in conjunction with Leegality’s Face Capture, ensures 100% compliance and security in every transaction.
Leegality eliminates the need for Arohan’s loan officers to carry stacks of documents – they just need their tablets to process paperwork! Customers can either sign in person or remotely. Signed documents are stored directly on Arohan’s Document Management System, thereby preventing transport and storage issues. Arohan has digitized the entire customer lifecycle and the post-sales support touchpoints to enhance its offerings. As a company that has a clear focus on being ‘Cashless at the Front and Paperless at the Back,’ it aims to serve its customers better with fully digital paperwork and, in the process, also reduce operational costs for both customers and the company. Client origination is paperless, and all of the disbursements are now into the bank accounts of the client. Such digitization initiatives help the company attain better portfolio management, improved service, and reduced time as compared to the manual offering.
Founder and CEO of Leegality – Shivam Singla said “Challenges like COVID19 imposed physical movement restrictions, increasing the demand for tech solutions for business continuity. We are now seeing MFIs enthusiastically jump into digitization of critical business processes. In our experience, Arohan has been one of the leaders in this shift – being very flexible, agile and fast with tech adoption. The best part about working with them is that they see everything from the perspective of how their end customer and field officer will use it. This is a thoughtful perspective on digital transformation.”
Arvind Murarka, Senior VP and Head-IT, Arohan Financial Services said, “As a result of the pandemic, we have been facing various on-ground challenges in the field pertaining to collections. Today, with the intervention from Leegality, our field agents can now spend more time enabling collections while also sourcing new customers.”