FROM GOLD TO GOLD +, THE STRATEGY HAS DELIVERED – V.P.NANDAKUMAR

Another significant development away from the risk angle is that as a company we continued to live up to our motto of “make life easy”.  We have now made gold loans even more convenient with the launch of our Online Gold Loan or OGL. A customer who has completed the initial formalities can now avail a gold loan 24X7, from anywhere in the world, in fact, even as he sits at home. The loan proceeds are instantaneously transferred to his bank account. In the coming days, we hope to extend this concept even further with a co-branded debit card that would allow the customer to withdraw the amount from an ATM anywhere. We may even consider having the credit afforded directly to the customer’s e-wallet account.

For a long time, Manappuram Finance Ltd. was known as a leading gold loan company. A couple of years ago, we took a strategic decision to diversify our portfolio and move into other areas of finance.  As a gold loan company, we catered largely to the layer just above the bottom of the pyramid (those who owned at least some gold). Our idea now was that we should expand both upwards and downwards, from gold to Gold +, so to say. With microfinance, we wanted to cater to those further down at the bottom of the pyramid. By venturing into affordable housing finance and commercial vehicle loans targeting the unorganised sector, we would go up the value pyramid.  These days, we are in the process of transition to a multi product financial services company. Of course, our focus will remain largely on the unbanked, financially excluded segments.

V.P. NandaKumar

(MD & CEO Mananppuram Finance Ltd)