Arohan Annual Report FY 20-21

Advanced and Scalable Technology-enabled Infrastructure Technology at Arohan has been the cornerstone for enabling the Company’s quest for scale and growth in its Vision, serving 5 million households in the financially excluded and underserved segment of the socio-economic pyramid in India. Since 2016, when the Company first started building its IT foundation, till today, the focus has invariably been on the path of ‘Cashless at the front’ and ‘Paperless at the back’. In its business of catering to the credit needs of over 2.21 million customers, Arohan’s IT system currently captures more than 350 different data points per customer and facilitates over 2 mn transactions every single day in the Company’s steady Loan Management System. Therefore, the use of Technology to advance and scale Arohan’s infrastructure, strengthen its financing initiatives, and derive greater operational, cost and management efficiencies across the business functions is of strategic importance to the Management. Arohan’s adoption and implementation of Information Technology is guided by the IT Strategy Committee of the Board, which chaired by an Independent Director. Arohan believes that its use of technology has been innovative. This is evidenced by the inclusion intheSKOCHOrder-of-Merit for ‘ITTransformation, Mobility and CRM’ in 2017, and the SKOCH Order- of-Merit for qualifying among the Top Ranking Banking and Finance projects in India for ‘IT Strategic Transformation’ in 2018. Arohan also received an award for being a Digitally Advanced NBFC at the India NBFC Summit and Awards in 2019. Recently the Company has received a semi- finalist recognition at the SKOCH Order-of-Merit Awards 2021 for meraArohan, an end-to-end in- house lending solution. Over the years, Arohan has implemented various technology-based tools and platforms: 1. Gravity: ‘Gravity’ is an Android and web-based application for Loan Origination that helps to record operational transactions conducted in the Field on a real- time basis. 2. Profile: ‘Profile’ is a Core Banking System from FIS (a Global Fortune 500 company) to manage the overall lending business, increase customer handling numbers and strengthen the Company’s back-end systems. During the COVID-19 pandemic, the Company’s Core Banking System helped to manage various government responses, including the extension of payment moratorium, interest subvention and compound interest relief for all eligible customers. Arohan is the only MFI in India using ‘Profile’ as a loan management solution. 3. Prismatic: Arohan also runs data analytics on internal customer data and external data provided by CRIF High Mark, a Reserve Bank of India- approved Credit Bureau in India, for its operations. Arohan uses CRIF High Mark’s “Prismatic” data analytics for its area selection process when expanding into new geographies. 4. Perdix: Since 2017, Arohan has used “Perdix”, a centralized digital audit platform, for its internal audit, and are the first MFI in Eastern India to use the audit software. “Perdix” provides access to audit schedules, input screens and the entire audit database through a web-based platform including auditable data such as cash management process, fixed assets and loan documents. 5. Diligent: In 2019, Arohan implemented “Diligent”, a comprehensive corporate governance software which manages all its board related activities in a paperless, transparent and timely manner. This has led to reduced usage of and dependence on physical Management Discussion & Analysis 61