Empowering Women, Enriching Lives: Muthoot Microfin
MUTHOOT MICROFIN LIMITED is one of the leading micro-finance institutions focused on providing micro-loans to women customers with a focus on rural regions of India.
Muthoot Microfin is one of the leading and fastest growing microfinance institutions in India. The microfinance operations of the company are designed to promote entrepreneurship among women and inclusive growth. Muthoot Microfin is passionate about empowering people from the bottom of the pyramid to realize their dreams. The organisation possesses an unwavering commitment to the cause of women empowerment and financial inclusion. Muthoot Microfin has 1.7 million active borrowers, who are served through our 600+ branches across 17 states and union territories in India, with a talent pool of above 7700 employees. Muthoot Microfin is a part of the Muthoot Pappachan Group, one of the leading business conglomerates in India.
MUTHOOT MICROFIN LIMITED is a part of the Muthoot Pappachan Group, which is one of the leading business conglomerates in South India, with presence across financial services, automotive, hospitality, real estate, healthcare, information technology, precious metals and alternate energy sectors. It believes that the relationship with the Muthoot Pappachan Group provides a strong brand recall and continues to derive significant marketing and operational benefits from the relationship.
Annual Turnover (2018-2019): Rs. 7,50,42,30,396/-
Recent Financial achievements:
1. Mergers & Acquisitions:
3. Joint Ventures:
4. Technology transfer:
5. Private Equity/Venture funds investment: Raised ₹1 billion private equity investment from Creation Investments India LLC
What is your brand proposition
To be the most successful microfinance company providing need based financial services to the needy and the unserved, and to contribute to the society and serve all stakeholders alike.
To be among the top 3 microfinance companies in India by 2020, managing the best portfolio with presence in all possible corners of the country.
What is the brand image that the company wants to portray to its target group?
The company’s wide range of lending products are aimed at catering to the life cycle needs of rural households. We provide loans for income generating purposes to women entrepreneurs living in rural areas. Our loan products comprise of (i) group loans for livelihood solutions such as income generating loans and dairy loans, as well as individual loans such as sewing machine loans; (ii) life betterment solutions including emergency loans, mobile phones loans, solar lantern loans, solar fan and education loans; and (iii) health and hygiene loans such as water purifier loans and induction stove loans. The company has adopted a joint liability group model which caters exclusively to women in lower income households and is premised on the fact that if such individuals are given access to credit, they will be able to identify new opportunities and supplement and grow their existing income. The history of the Muthoot Pappachan Group in working with customers in the bottom of the economic pyramid, helps the organisation better address needs of women in rural households and design lending products to cater to their requirements.
The organisation believes that all aspects of the brand image should resonate with the target audience, letting them know how their quality of life could benefit from connecting with business. The brand image and tangible benefits that differentiates the company from other competitors. Apart from attracting ideal clients, the brand image company put forward also gives its employees direction and motivation to embrace company’s values and priorities as their own.
What according to you are the five competitive brands in the country and in Asia in your category?
Microfinance is a still an emerging and growing sector in developing countries.
CreditAccess Grameen, Satin Creditcare Network, Spandana and Asirvad are some of the competitors in the country. Grameen Bank of Bangladesh, Rakyat Bank of Indonesia, Amanah Ikhtiar Malaysia, TYM (Tinh Thoung Microfinance) of Vietnam and ASA Philippines are major players in Asian market.
According to you what is the consumer perception of your brand?
Muthoot Microfin is a part of the Muthoot Pappachan Group, which is one of the leading business conglomerates in India, with presence across financial services, automotive, hospitality, real estate, healthcare, information technology, precious metals and alternate energy sectors. We believe that our relationship with the Muthoot Pappachan Group provides us with a strong brand recall and we continue to derive significant marketing and operational benefits from our relationship.
The Muthoot Pappachan Group, with a reputation that has been shaped over decades with high quality practices, total customer satisfaction and steady growth in the field of business, is a legacy built on God-given values of trust, truth, transparency and tradition and has become one of the top business houses today.
On the above grounds and the trust, the brand has built over decades of doing business with common man, Muthoot Microfin enjoys enormous goodwill. Customers have faith in the company’s vision and mission, this has reflected in the growing client acquisition and business of company.
6. In the past 12 months what branding and marketing activities has been undertaken by your company to enhance the visibility, recall and acceptability of the brand?
Muthoot Microfin is a part of the Muthoot Pappachan Group, which is one of the leading business conglomerates in South India, with presence across financial services, automotive, hospitality, real estate, healthcare, information technology, precious metals and alternate energy sectors. The company’s relationship with the Muthoot Pappachan Group provides with a strong brand recall and the organisation continue to derive significant marketing and operational benefits from the relationship. There are significant synergies between the financial services business of the Group, and micro-finance business.
Major campaigns: Blue Soch campaign with Vidya Balan | Muthoot Blue League of Dreams – gave wings to the passion for Cricket in the gullies of India | Regular BTL activities |
What innovative measures the brand has taken to reach consumer digitally?
Muthoot Microfin has developed an entirely indigenous software system which is expected to largely enhance the internal process, service delivery and customer experience pertaining to the company’s microfinance operations.
The new software, named SERENEPRO offers comprehensive solution for Microfinance LOS (Loan Origination System) and LMS (Loan Management System). This is a novel, easy, accurate, affordable and sustainable end-to-end online microfinance software which is developed entirely in-house.
This innovation has enabled the organisation to minimize risk exposure in addition to increasing operational efficiency. Proven scoring techniques evaluate and project the creditworthiness of potential new customers. And the system is designed for flexible management of credit rules, credit policies, and scoring models. SERENEPRO is a solid alternative to traditional loan origination software. It offers a customer-centric approach and the ultimate loan processing capabilities.
The organisation has empowered Loan Officers with digital tabs. The officers visit the clients’ home & enters the client info through the tab – with the help of Telerios (associated app of the software) for instant credit check. Once the credit check is successful, RO takes photos of required documents. As the next step, credit team visit the household for verification and geo-tags the location. In the final round, application forms (filled) are downloaded from tab and applicant only needs to sign to start processing. Loan is disbursed to customer’s bank account. This digital solution has cut down the timeline of loan disbursal to 3 days (inclusive GRT) from 7 days earlier.
The Brand Strength
Muthoot Microfin’s position amongst the leading NBFC-MFIs in the microfinance sector enhances its reputation and credibility with borrowers, lenders and other stakeholders. The company derives numerous benefits from its leadership position, including ability to secure capital at competitive costs, recruit and retain skilled employees, retain existing borrowers, add new borrowers, expand into new regions and grow portfolio of new products which are being introduced from time to time.
The company has built its distribution platform with an emphasis on under-served rural markets with growth potential, in order to ensure ease of access to village level borrowers and rural households. The company’s branch and center network in rural markets results in significant competitive advantages, particularly by giving the capability to offer a variety of financial products in areas where financial services penetration is limited. Branch and center network also assists in managing disbursement and collection in an efficient manner and provides local knowledge and know-how, which is critical to the success of operations.
Muthoot Microfin is a customer focused company passionate about empowering people from the bottom of the pyramid to realize their dreams. MML financial products are aimed at catering to the life-cycle needs of rural households and has established standards and systems that work smoothly and transparently for clients and the company as well. Our brand identity possesses an unwavering commitment to the cause of women empowerment and financial inclusion.
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