Service Management Project

Group 3Eshwar K R 15019

Sumanth M M 15056

Indrashish Guin 15087

Shivakanth Sharma 15112

Tejasri MLS 15156

Vinay Kumar 15183

Agenda:

• About MFI

• Introduction of Ujjivan

• Nature of services & services offered

• Strategic Vision

• Growth rate

• Service Blueprint

• Demand Forecasting & Capacity Management

• HR policies

Microfinance Institutions

• Loan given without security• Loans to those people who live below the poverty line• Members of SHGs may benefit from micro finance• Maximum limit of loan under micro finance ₨25,000/-• Terms and conditions offered to poor people are decided by NGOs• Microfinance is different from Microcredit

Ujjivan Financial Services• Started in 2005• Has its branches in 24 states, 423 branches and over 6500 employees• started a concrete water reservoir at a school in Kolkata• fully managed cloud service• In September 2015 the profit before tax was 737.31 million• 16th place in the category ‘Top 50 firms above thousand employees’• 2nd place in the Financial Services category for Best Companies to work for.• One of the Best Companies in Leadership Development.

Customer Segment

Service Package

• Supporting Facility- Office space, furniture, stationery, lockers, IT infrastructure, Document Management System.

• Facilitating goods- Legal documents, monetary products.• Information- Internet enabled hand held field tablets, official website, SMS and voice enabled

reminder to customers, In-bound and out-bound call centre for customer redressal.• Explicit services- Collateral free loans for customers, successful business, hassle free loans

disbursement and credit- sum deposit facility.• Implicit services- Loans at lesser interest rate than pawn brokers

Nature of Services

• Mass Service due to low customisation and high labour intense.• Method of service delivery- Grameen method• Formation of small groups of people to provide morally necessary group guarantees.• Group based lending is one of the most innovative approaches of lending small amounts of money

to a large section of society• Opportunity for women to access loans for starting a small scale or medium size enterprises

Services offered by Ujjivan

• The business is primarily based on the joint liability group lending model for providing collateral free, small ticket-size loans to economically active women.

• The company also offers individual loans to micro & small enterprises (MSEs).

• In terms of loan products, Ujjivan offers a diverse range to cater to the specific requirements of the customers.

• Its products can be classified under two broad categories i.e., 1. Group loans2. Individual loans.

• Depending on the end use, these products can be further sub-divided into • Agricultural, • Education, • Home improvement, • Home purchase• Livestock loans.

• In addition to loan products, it also provides non-credit offerings comprising life insurance products, in partnership with insurance providers such as Bajaj Allianz Life Insurance Company, Kotak Mahindra Old Mutual Life Insurance and HDFC Standard Life Insurance Company.

• Core Banking and all other systems will run on most secure and robust servers like Oracle Sun Super Cluster, CISCO Blade Servers and CISCO Routers and Switches.

Customer Retention Percentage

Currently total number of customers are 1.21 million. Approximately there is a growth of 12% in their customer base.

Strategic service vision

• Target customers: People with lower income mainly in semi urban and villages unserved by

higher financial institutions and banks.

• Operating structure: The regional office of Ujjivan is where a customer can apply for the loan.

The highly populated cities are allocated with more funds for the sanction of loan by Ujjivan.

• Service delivery system: Granting loan without having a guarantee.

• Service concept: To provide full range of financial services to economically active poor to build

better lives.

Emergency Loan• Medical emergency requirements of customers.

• Disbursed within 24 hours of request.Service package :

Explicit service -Range of Rs 2000 to Rs 5000.

Information - Bill receipts which the customer claim for the loan.

Service Strategy :• Target customers: Daily wage groups and lower income

• Operating structure: Applied loans are being sanctioned by the regional offices.

• Service delivery system: Granting the loan amount within 24 hours.

• Service concept: Basically for the poor people who are in extreme need.

Education Loan• This service is provided to promote education among our customers. To help the customer children’s educate

by providing the expenses.• The loan range: Rs.5,000–Rs 15,000• The repayment tenure: 12 Months• The processing fees: 1% of loan amount (exclusive of taxes)

Service Package• Explicit service: The education loan provided between 5000 to 15000.• Implicit service: The annual meeting to involve all the customers and make them knowledgeable about

various courses.• Information: The information from standard institutions.• Supporting facility: Details from schools and colleges.

Service Strategy• Target Customer – Mainly to the customers children and other studious needy students.• Operating Structure – Applicants has to get certificates from the academic institutions for approval of loan• Service Delivery System – Valid applications are sanctioned within 20 days and cheque is issued. • Service Concept – To raise the standard of living of the customers children thereby increasing customer

loyalty.

Facility Design and Facility Layout • Orientation at Ujjivan• Servicescape of Ujjivan.• Interpersonal services (both customer and employees)• Environmental Dimensions of ServicescapeAmbient ConditionsSpatial Layout and FunctionalityFacility Design• Nature of the service organizations.• Land availability and Space area requirements.• Security

Process Analysis

Growth Path of Ujjivan:• A company’s growth can be explained by using various important financial indicators as well as in

terms of its geographical expansion, number of employees, customer reach and services it delivers to its customers.

• Financial indicators that measures growth include • Assets under management (AMU)• Net interest income• Net interest margin• Profit after tax• Return on equity• Return on assets

Assets Under Management (AMU):

Net interest income

Net Interest Margin:

Profit After Tax:

SERVICE BLUEPRINT

Group Loan• Focused mainly on poor for providing group based financial services. • This segment was underserved by other financial institutions and Ujjivan used this opportunity to

accomplish their financial inclusion objectives. • Extensive coverage of the poor accounts for a significant portion of outstanding portfolio. • Operates mainly joint liability group (JLG)

Some group loan products are : • Business Loan• Family Loan • Agriculture and allied Loan • Business top-up Loan • Education Loan • Emergency Loan

Individual Loan

• Targets ‘missing middle’ and this portfolio comprises of 10 % of outstanding loans.• Loan given to individual basis without any group guarantee. • In selecting individual livestock loans and business loans which are offered to customers who doesn’t

have repayment track record with Ujjivan.

Some Individual loan products are: • Individual Business Loan• Individual Livestock Loan • Home Improvement Loan• Higher Education Loan • Individual Agriculture Loan • Secured Business Loan • Secured Home Loan

Demand Forecasting by Ujjivan • According to the National Housing Bank there was huge demand for housing loans

within the lower segment of the population. Most of the customers lives in small and unfurnished houses which needed to be renovated. This department led to the Home Department Loan Product. They served around 5000 families for better living by providing them Home Loan.

• India has world’s largest bovine population. Most of the dairy businesses are concentrated in the semi urban or villages of India. The dairy farmers were solely dependent on money lenders and informal financial institutions. Ujjivan took this opportunity and this demand led to the conceptualization of Livestock Loan for the dairy farmers.

Capacity Management by Ujjivan • Usage of Central Banking System (CBS) where customer is the main business element.

Communications and financial activity are merged together for the betterment of the financial services towards their customers. It is being well integrated with the mobile transaction field.

• In retaining top talent they has launched deferred compensation scheme and has ensured comprehensive training and capacity development programme across various functions.

• In the near future through technological advancements like e- KYC authentication with UID, handheld device-enabled underwriting process etc. they has focused on capacity building and increased efficiencies.

HR PoliciesRetaining Top Talent• Promoting Experienced Staff

• Internal Job Postings (IJPs) and Employee Referrals

• Well-rounded Growth

• Performance-based Rewards and Recognition

• Training Initiatives

• Timely Appraisals

Management Development Program• Need-based Skill Development

• On boarding Programs

THANK YOU