Financial services platform Muthoot Fincorp One is expected to contribute roughly 10 per cent to Muthoot Pappachan Group’s revenue in the next three years, according to platform CEO Chandan Khaitan.
Launched three months ago, the all-in-one digital financial platform currently accounts for 1.5-2 per cent of the revenue on the back of roughly 20,000 transactions per day. Nearly two lakh customers of the NBFC have so far downloaded the application of which 60 per cent are active users, Khaitan told businessline.
Set up as an SBU (strategic business unit) of Muthoot Fincorp, the platform is aiming for 10 lakh app downloads and a rate of 80,000 transactions daily by the end of FY24, he added.
Muthoot Fincorp is the flagship company of Muthoot Pappachan Group (Muthoot Blue). The NBFC has an overall customer base of around one crore customers and a physical reach to 55 lakh customers, through which it services nearly one lakh customers daily through its branches.
Leveraging on tech
The ‘phygital’ approach undertaken through the launch of the app will leverage the use of technology and data science to serve customers better by meeting their requirements, increase stickiness and bring in new customers, Khaitan said.
He added that it will also help increase the customer universe through additional features such as ‘gold loan from home’, forex transactions, end-to-end digital gold and MSME loans, facility to digitally invest in the company’s NCDs (non-convertible debentures) and UPI-led payments.
Currently launched in English, the company has plans to introduce the One platform in several regional languages to create a multilingual platform which offers lending,remittances, investment and protection. This includes two-wheeler loans, insurance, money transfers and housing loans.
It is also looking at third party tie-ups to add new product segments such as pre-approved personal loans and gold loan-related products such as top-up loans, embedded MSME finance, investment in sovereign gold bonds, and eventually investment in mutual funds.
“This will increase the recency, frequency and stickiness of customers on the platform. We are building a complete customer loyalty programme on the platform. So whatever they do, in every touch point, we will be able to reward them on every action, which will also allow us to increase the lifetime connection with customers,” Khaitan said.