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Poonawalla Fincorp Embraces AI to Modernize Debt Management

  • Writer: Ramakant Ranade
    Ramakant Ranade
  • 2 days ago
  • 3 min read

Poonawalla Fincorp Limited (PFL), a prominent non-banking financial company (NBFC) under the Cyrus Poonawalla Group, is charting new territory in digital finance by adopting a powerful AI-driven debt management system. This strategic move supports PFL’s ongoing emphasis on Consumer and MSME lending, while enhancing its commitment to efficiency and strong governance practices.


Unveiled on a recent Monday, the AI-enabled platform is engineered to streamline collection activities throughout the borrower lifecycle. At its heart lies a sophisticated AI engine that processes multichannel customer interaction data—from digital texts and calls to field visits. The technology applies over 100 unique micro-strategies, specifically aligned to customers’ preferences and behavioral patterns.


Poonawalla Fincorp


By integrating this system, PFL has drastically cut down manual workloads and delays. Routine tasks that once took up to five days are now handled automatically, resulting in faster service and better borrower satisfaction.


Speedier Engagement After Payment Defaults


A key capability of the platform lies in its automation of channel assignment following customer delinquencies. Previously taking up to four days, this step now requires less than three hours, allowing the company to engage defaulters more quickly and effectively.

This AI integration not only enhances speed but also boosts precision. By analyzing a broader and deeper pool of transactional and behavioral data, the models deliver risk assessments that are up to three times more accurate than legacy systems.


“Our shift to AI is all about informed, data-centric decision-making that boosts performance,” said Arvind Kapil, Managing Director and CEO of PFL. He further emphasized that the focus is on accuracy and adaptability in today’s dynamic financial landscape. “The combination of predictive analytics and governance controls allows us to reshape how we manage collections,” he added.


AI Ensures Governance and Real-Time Oversight

PFL has gone a step further by using Generative AI in its compliance processes. This technology enables automated auditing of call center operations, ensuring that all interactions meet regulatory and internal standards. The dual benefit? Enhanced adherence to compliance and immediate performance feedback, both of which support continuous process optimization.


The implementation of this AI-powered system over the past six months has yielded clear operational gains. These efforts are aligned with PFL’s broader ambition to embed AI throughout its ecosystem, including lending, compliance, and human resources.



AI Collaboration with IIT Bombay Yields Underwriting Breakthrough

In March, PFL extended its AI capabilities through a partnership with the Indian Institute of Technology (IIT) Bombay. The goal was to create a credit underwriting tool that would automate decision-making and elevate the efficiency of retail lending.

The result is a robust AI system that utilizes machine learning algorithms trained on large data sets to assess borrower creditworthiness. Since its implementation, PFL has observed a 40% improvement in productivity among its credit team—an achievement that highlights the technology’s transformative impact.



Automation for Audit Trails and Recruitment

Further AI adoption came in February when PFL joined forces with ServiceNow to overhaul internal audit procedures. These smart tools automate audit trail management, enhancing transparency and improving compliance workflows.


The company has also integrated AI into human resources. These tools help identify potential hiring risks, refine applicant evaluations, and support data-backed hiring decisions—contributing to a more objective, accurate, and compliant recruitment process.


Operational Reach and Business Metrics

Poonawalla Fincorp operates in 18 states and two Union Territories, offering a broad range of lending products including personal loans, used car loans, and business financing. With a workforce of around 3,590 employees, the company continues to strengthen its pan-India presence.


As of March 31, the firm’s assets under management (AUM) reached ₹35,631 crore. In Q4FY25, it reported a sharp 81.2% decline in net profit to ₹62.3 crore due to one-time expenses and provisioning. Nevertheless, revenue from operations rose 27% year-over-year, totaling ₹1,166.27 crore—highlighting strong revenue momentum despite transitional pressures.



Toward a Tech-Led Financial Future

PFL’s deep integration of AI signals its broader ambition: to evolve from a traditional NBFC into a modern, scalable fintech leader. By investing in automation, predictive analytics, and smart decision-making systems, the company is building a foundation for long-term resilience and customer-centricity.

As artificial intelligence reshapes financial services globally, Poonawalla Fincorp is demonstrating how Indian NBFCs can lead with innovation, integrity, and digital mastery. CEO Arvind Kapil’s forward-thinking leadership is helping establish the company as a benchmark for tech-first financial institutions.

With a future shaped by data intelligence and digital agility, Poonawalla Fincorp sends a clear message: the next era of lending is smarter, faster, and more accountable.


 
 
 

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