Poonawalla Fincorp adopts AI for enhanced debt management

Poonawalla Fincorp Limited, a key player in the non-banking financial sector, on Monday announced the adoption of an advanced AI-powered debt management platform. This initiative is aimed at transforming its debt management processes by integrating predictive models and machine learning to sharpen risk assessments by 2-3 times compared to traditional models.

"Our adoption of AI in debt management is not just about automation—it’s about smarter, data-driven decisions that improve outcomes. By combining predictive insights with governance controls, we are redefining collection strategies to be more effective, adaptive, and responsive to customer engagement," stated Arvind Kapil, Managing Director and CEO of Poonawalla Fincorp. Over the last six months, the alignment of technology with collection objectives has notably enhanced efficiency.

The platform features a GenAI-enabled automated call audit mechanism, which monitors interactions between collection agents and customers, ensuring adherence to governance standards and enhancing accountability. This mechanism reflects PFL's commitment to maintaining robust governance standards.

Furthermore, the integration of various technologies into the collection processes has led to significant improvements. The new system reduces manual effort in managing collection communications by 4-5 days, enabling more efficient operations. An advanced engine analyses customer interactions autonomously, offering multi-layered, multi-channel interventions to optimise outcomes and ensure compliance.

The implementation of a human-less, automated channel allocation process has been another significant advancement. This improvement has cut down the time required for customer engagement post-delinquency from 3-4 days to under 3 hours, facilitating faster responses and enhancing the overall customer experience.

The platform enables Poonawalla Fincorp to deploy over 100 micro-strategies that align with customer profiles, preferred communication channels, and optimal engagement timings. Such strategic innovations emphasise PFL's focus on simplifying lending processes while creating enhanced customer experiences and satisfaction.

Through its risk-first approach, Poonawalla Fincorp aims to maintain its position in the sector by continuously innovating its offerings and processes. The strategic use of technology not only simplifies lending but also promises to deliver customer delight, which remains a top priority.

The company's ongoing efforts to harness AI and machine learning highlight its dedication to remaining at the forefront of innovation in debt management. The move also underscores a broader industry trend towards leveraging AI for improved operational efficiency and enhanced governance standards, setting a precedent for competitors in the market.

Meanwhile, shares of Poonawalla Fincorp were last seen trading 1.52 per cent lower at Rs 375.50.