Conversational Voice Bot: In FY 2024, Arohan introduced generative AI-driven conversational voice bots, targeted at a select group of customers. These innovative voice calls by “Arohi”, the Company’s first Bot Employee, serve to gauge customers’ intentions regarding repayment or settlement of their overdue accounts. By following up on recorded PromiseTo-Pay (PTP) dates, Arohan has ensured more targeted recovery efforts in a shorter timeframe. This proactive approach has yielded significant results, with approximately INR 5 Cr recovered through this initiative. Notably, 75% of this recovery has been attributed to customers who were either not paying or have made only negligible payments previously. This underscores the effectiveness of leveraging advanced technology to engage with customers and drive positive outcomes in debt recovery efforts. Dista, AI-based Field-Force Management Software: Arohan replaced the earlier ‘SpotWays’ app with ‘Dista’ app to help ease the daily operations of its Recovery Executives, maintain trails and reach the difficult customers conveniently. Thus, aiding recovery efforts in a big way by expanding coverage of the identified customer pool. The app captures disposition codes that were appropriately acted upon. In addition, the effective monitoring features of the app, used by the supervisors have helped improve overall efficiency significantly. Use of Collection Agency: In FY 2024, Arohan collaborated with three Collection Agencies to take care of a certain portion of the portfolio, allowing the internal team to focus more effectively on less delinquent and contactable customer pool. The contribution from three such collection agencies has been approximately INR 16 Lakh in FY 2024. MFI ALLIANCES BUSINESS & OPERATIONS Arohan stands out among NBFC-MFIs for its unique approach in extending loans to smaller MFIs for the development of microfinance portfolios, ranging from INR 1 Cr to INR 25 Cr in term loans. Additionally, it pioneers exclusive Sourcing & Collection (“S&C”) arrangements with other microfinance institutions, facilitating portfolio growth. In this arrangement, Arohan partners set up dedicated branches to extend microfinance loans and manage repayments. The loans are written on Arohan’s books, while the partners are granted a share in interest collections—a mutually beneficial setup fostering growth without capital outlay. Through this vertical, Arohan collaborates with MFI partners across its operational areas, extending credit to customers in remote areas and supporting grassroots institutions with financial, technological, and operational expertise. Arohan’s leadership in this space not only ensures continued access to credit for underserved communities but also empowers local institutions through tailored consultations and training initiatives, fostering a sustainable ecosystem. Arohan adopts an innovative Inorganic business model, leveraging non-qualifying space from its Term Loan product while enriching its qualifying book through Sourcing & Collection relationships. Direct Assignment agreements further enhance geographical diversification and bolster Arohan’s quality loan book. In FY 2024, Arohan has expanded its footprint through three direct assignment deals with microfinance partners, enhancing liquidity for sellers and extending its reach into new markets. This strategic approach underscores Arohan’s commitment to fostering financial inclusion while maintaining a robust growth trajectory. COMMITMENT TO CUSTOMER CENTRICITY At Arohan, prioritizing the evolving needs and behaviors of our customers is ingrained in our ethos. The Company continuously analyses customer trends and adapts processes and services accordingly, reflecting our unwavering commitment to Customer Centricity. Safeguarding and advocating for the interests of our customers is not just a priority but a cornerstone of our strategy for sustainable growth. Arohan’s dedication to customer-centric practices has been validated through its achievement of the Gold Standard of Client Protection Principle (CPP) certification. Arohan has excelled by meeting an impressive 99.1% of the indicators set forth by CERISE & SPTF. As per the awarding committee, “the GOLD level is the highest level of achievement and signifies that the certified institution meets the most rigorous standards of client protection found in the Universal Standards for Social Performance Management.” Empowering Customers through Actionable Insights Arohan leverages cloud technology to extract invaluable insights into customer satisfaction through its Customer Insights function. Serving as a centralized hub for addressing all customer queries and concerns, this function plays a pivotal role in ensuring swift and effective resolution. Powered by a cloud-based Customer Relationship Management (CRM) system, Arohan efficiently routes and resolves queries within defined timelines, bolstering customer satisfaction. As the custodian of Arohan’s Customer Grievance Redressal mechanism, the function operates in strict adherence to guidelines set forth by the Micro Finance Industry Network (MFIN), the Self-Regulator Organisation, and the Reserve Bank of India. With a relentless focus on enhancing Customer 41 | Annual Report 2023-24
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