Poonawalla Fincorp Leverages AI to Revolutionize Debt Management and Governance.pdf

This PowerPoint presentation outlines Poonawalla Fincorp’s transformation journey through the implementation of an AI-powered debt management system. The company’s focus on optimizing collections, improving customer engagement, and enhancing governance standards is central to its strategy. Additionally, the presentation discusses key AI initiatives in credit underwriting, internal audits, and human resources, alongside the company’s partnerships with IIT Bombay and ServiceNow. Ultimately, Poonawalla Fincorp’s commitment to digital innovation, operational efficiency, and sustainable growth is set to redefine the future of financial services in India.

1. Poonawalla Fincorp Leverages AI to
Revolutionize Debt Management
and Governance

2. Introduction
Poonawalla Fincorp Limited (PFL), a part of the Cyrus Poonawalla Group, has
embarked on a major digital transformation by integrating an advanced
AI-powered debt management platform. This strategic initiative aims to
streamline operations, enhance customer experience, and promote efficient
governance. The move aligns with the company’s focus on Consumer and
MSME lending while embracing automation for operational efficiency.

3. The AI Platform for Optimizing Debt Collection
The AI-powered platform has been designed to optimize the collections
process across the entire customer lifecycle. The system utilizes autonomous
AI engines that analyze customer interaction data from multiple channels,
including digital messages, tele-calling conversations, and field visits. By doing
so, it enables over 100 micro-strategies that are tailored specifically to
individual customer behaviors and preferences. This innovation significantly
reduces manual efforts, cuts delays, and improves customer responsiveness.

4. Faster Channel Allocation After Payment Delinquency
A key feature of this AI platform is its ability to automate the channel
allocation process after a payment default, a task that traditionally took 3-4
days. With the new technology, this process is completed in less than three
hours, allowing the company to engage with delinquent customers in a more
timely and targeted manner. The AI models also offer superior accuracy,
providing two to three times better risk assessments than traditional systems,
thanks to their incorporation of behavioral and transactional data.

5. Generative AI for Governance and Compliance
In addition to improving collections, Poonawalla Fincorp has incorporated
Generative AI into its call auditing processes. This ensures that call center
agents comply with governance standards, thereby enhancing compliance and
providing real-time feedback for continuous process improvement. These
advancements contribute to measurable improvements in operational
efficiency, aligning with the company’s broader AI adoption strategy.

6. Partnerships for AI Innovation in Credit Underwriting
In March, Poonawalla Fincorp advanced its AI capabilities by collaborating with
the Indian Institute of Technology (IIT) Bombay to develop a cutting-edge
credit underwriting solution. This collaboration has already yielded positive
results, with a reported 40% improvement in productivity among credit
managers in the retail lending division. The AI-driven platform helps automate
credit evaluations by leveraging machine learning models trained on large
datasets, allowing for precise credit assessments with minimal human
intervention.

7. AI Integration in Internal Audit, HR, and Governance Functions
The company has also partnered with ServiceNow to enhance its internal
audit and governance functions through AI. By automating large portions of
audit trail management, Poonawalla Fincorp has increased transparency and
compliance. Additionally, AI is being used in human resources to improve
candidate assessments, mitigate hiring risks, and ensure data-driven
recruitment, thus ensuring a fair and efficient hiring process with greater
accuracy and less bias.

8. Future Outlook
Poonawalla Fincorp’s proactive adoption of AI signals its ambition to evolve
into a fully tech-driven, scalable financial institution. By leveraging data
science, machine learning, and automation, the company aims to enhance
customer experience, improve operational resilience, and drive long-term
growth. The company is positioning itself as a leader in the digital
transformation of the financial services industry, blending growth with
governance, and innovation with financial prudence.