Dog like life

While many of us working in IT Organizations do understand the BFSI business, we do not understand the pressure that the whole system is under.

In this world where we sell ice cream in Ladakh as special ice cream that can keep you warm, the core product of the company in the BFSI environment is Money itself, the company has to be responsible and proactive while providing and while getting back the money, which most often does not happen.

How does a loan get processed?

Many of you would understand the flow, the sales representative either working under a Team leader of the DSA or the Direct selling agent of the company would approach prospective customers either after making hopeless phone calls disturbing the average mobile user at the oddest of the places including the important meeting with the boss, when you are entering the loo for a quick relief , out with the family on the a holiday, roaming in the US of A or just about wherever you are. This is the first irritation point for each prospective customer.

By receiving numerous phone calls the customer is under the opinion that he is being offered loans for various purposes from multiple banks/Non-financial institutions, how does it in the end affect sales & credit for the bank/NBFI?

High level of bargaining power for the customer
True credit potential unknown
Multiple loans being held by the same individual
Committing fraud becoming increasingly easy

How does the company tackle this? How do they provide the loan? Why do they have to sell credit? – All these are questions that arise in the mind of every person who receives the call, he/she needs money at some point of time and then accepts the offer.

Then there is sales pressure and fraud that affects the whole system. The credit appraiser is responsible for credit and the solvency of the loan, how often does the sales presure act on him ? Yes, day in and day out he has to sign deviations from the norm, otherwise he is put in a difficult position by the sales managers who report into business heads .

Now sales achives their target of say 100 loans for an area, the next month it increases by another 50%, where do the sales guys get the people who need to borrow ?

Then comes the life of the collection agents, false promises, frauds and sales rule the roost. Lesser said better it is about collections.

In the end it is a dog like life