SEMM Case Study

India’s vast demographics, along with its needs for financial inclusion, created an excellent opportunity for Fullerton India to offer financing to under-served customers for their consumption and income-generating needs. Recognizing this opportunity to serve the growing under-served segment located in affluent non-metro, semi-urban and rural locations, Fullerton India’s branches are strategically located to serve these communities.

In building a sustainable franchise, we focus on five key strategic levers: Focus on expanding secured portfolio; Leverage on branch network to increase coverage of semi urban and rural India; Discipline cost and process management enhancing productivity and customer experience; Strong risk culture based on a clearly articulated risk appetite and supported by analytics, modelling and stress testing; and Stable, diversified and conservative funding strategies.

Hands-on approach propels SEMM business model in India

Feedback from the frontline revealed that self-employed customers want fast, simple and fuss-free loan application process. FICC innovates; adopting a sustainable business model to serve this segment. Instead of waiting for customers to come to us, we proactively visit the customers at their homes or place of business. According to Mr Shantanu Mitra, CEO of FICC, "The proactive interactions with customers by our frontline officers have enabled us to build strong relationships. This also gives us the opportunity to fulfil the broader needs of our customers".

Innovative use of technology

Digitization, simplification and standardization have improved the overall customer experience. Our systems at all our branches and processing hubs are fully integrated. The loan application process is automated; through a workflow system supported by a rule engine and online bureau connectivity. Fraud risk management runs on neural network-based system integrated with other key market participants. Bio-metric transaction devices are used extensively in collection which increases efficiency and provides transparency in dealing with customers.

Steady growth and a profitable business

Stringent performance indicators are set for each business unit. By the end of 2012, our 5000 staff located in 371 branches has served more than 1 million customers. We have also increased our profitability multi-fold over the past 24 months.


FICC’s customer assets and profit before tax in 2012-13 has increased by 25% and 300% respectively over the previous year.