AI can lead to more competent and cost-effective loan processes: Godrej Capital CTO Jyothirlatha B

Artificial intelligence (AI) has been a game changer for various industries, including financial services and lending. In an exclusive interaction with TechCircle, Jyothirlatha B, Chief Technology Officer (CTO) of Godrej Capital, the financial subsidiary of Godrej Industries, explains how the company is leveraging AI and automation technology to streamline the loan disbursal process. Jyothirlatha also sheds light on the company’s digitization journey by consistently investing in technology, nurturing a talented technology team, and fostering a culture of innovation to maintain transparency in lending practices. Edited Excerpts: 
 
Which technologies are you most excited about for your organisation?

Since its inception, Godrej Capital has focused on adopting a tech-first approach. Over the last three years, we have leveraged machine learning (ML) for data analytics. It has enabled us to gain profound customer insights, facilitating effective customisation of financial products. Our state-of-the-art tech has helped us achieve speed, accuracy, and efficiency, and now we believe AI stands to further revolutionise credit scoring, risk assessment, and fraud detection, leading to more competent and cost-effective loan processes. As we continue to progress, we see AI holding great promise for enhancing various aspects of our operations. Moreover, we are keen on exploring the potential of Gen AI in our processes to improve overall efficiency for our customers and the organisation.
 
Is your company’s tech budget growing this year? How does that number compare to the last few years?

As our company expands, our investment in technology also grows. This investment reflects our steadfast dedication to digital progress. Investing in technology is a strategic imperative for any institution. It not only leads to overall enhancements in customer operations but also offers cost-effective, speedy, and efficient solutions within business operations. The continued improvement in investment isn't just about keeping pace with the changing landscape; it represents a strategic investment in the future of our organisation. We are proactively addressing specific challenges and embracing innovation to gain a competitive edge in the long run. This investment extends beyond cutting-edge technologies and into the upskilling and development of our talented tech team. We believe that by empowering our people with the necessary skills and resources, we can unlock the full potential of these technologies and drive meaningful change within the organisation.
 
Which areas in technology are going to be your focus this financial year and why?

In the upcoming financial year, our focus will revolve around three primary areas of technology. First, harnessing the power of AI and ML in various aspects of our operations. By leveraging these powerful tools, we aim to enhance data-driven decision-making, personalise customer experiences, and strengthen risk management. Second, we are excited about the potential of India Stack technologies, such as Account Aggregator systems, to facilitate secure and expedited customer onboarding processes. This integration will streamline data exchange and verification, ultimately reducing administrative burdens for both customers and the organisation. And finally, it’s about scalability and security. We plan to strategically improvise our Infrastructure scalability with a hybrid cloud approach. Additionally, we are placing increased emphasis on data security measures.
 
What is your tech team like? Number of people and capabilities and are you planning to expand in the next one year?

Godrej Capital takes pride in its dynamic tech team, comprising a diverse group of individuals with expertise in software engineering, cloud computing, cybersecurity, and data science. This team is set to grow further in the coming year. We are dedicated to enhancing the skills of our existing talent pool through comprehensive training programs, while actively seeking recruits in the fields of solution architects, developers, and product managers to augment our capabilities further. With a predominant focus on in-house talent acquisition, we are dedicated to nurturing a skilled workforce capable of driving innovation and tackling emerging challenges in the ever-evolving technological landscape.
 
What kind of innovation are you bringing with tech as an enabler? Can you highlight an instance where tech helped improve the business revenues or CX for the company?

At Godrej Capital, we harness technology as a driving force for innovation, placing significant emphasis on enhancing both business revenues and customer experience. An illustrative instance of this is our zero-touch loan initiative, which was introduced amidst the pandemic to streamline the application process, offering heightened convenience to our customer base. Furthermore, our sophisticated chatbot system along with the service management system provides uninterrupted customer support, thereby contributing to an overall enhancement in customer satisfaction. This has further helped Godrej Capital in achieving the industry-best service net promoter score. This integration of technology spans various facets of our operations. For instance, our underwriting team utilises a tool that consolidates comprehensive customer data and generates eligibility reports, highlighting any pertinent red flags for immediate attention. These automated processes have substantially reduced our turnaround time, rendering our loan disbursal and eligibility confirmation processes swifter.
 
Have you completed any digital transformation projects in the last one year and how did you achieve that?

We pride ourselves on our strong commitment to technological advancement, particularly as a lending institution that emerged during the pandemic. From the start, we have embraced digital and cloud-centric strategies to navigate the challenges posed by Covid-19, leading to the introduction of India's pioneering Zero-touch mortgage loans. By investing consistently in technology, nurturing a talented tech team, and fostering a culture of innovation, we have successfully integrated digitalisation throughout our organisation. Although we recognise our past accomplishments, we are dedicated to ongoing enhancement, striving to establish ourselves as a technology-driven finance company at the forefront of digital transformation.
 
If we look at competitor benchmarking, which are the key technology areas that you see you need to pull up the activity given what your peers are doing or have already done in the past?

While we prioritise innovation and technological advancement within our organisation, we also recognise the importance of monitoring industry benchmarks. Although we do not base our technological roadmap solely on competitive benchmarks, we remain vigilant regarding our peers' advancements. By leveraging insights from industry-wide advancements, we aim to identify opportunities for improvement and implement best practices to further enhance our technological offerings. It's important to note that we don't simply chase trends. We prioritise technological advancements that directly benefit our customers and strategically align with our long-term vision. By focusing on these key areas, we aim to further strengthen our digital capabilities and solidify our position as a leading provider of innovative financial solutions in India.
 
What is your technology vision for the next 12-18 months?

Looking ahead, our vision for the next few years entails positioning ourselves as a leading tech-first lending institution, poised for sustained growth and innovation. To achieve this vision, we are committed to deepening our expertise in AI and ML with a robust data layer, enabling us to personalise offerings, strengthen data-based decision-making, and elevate the overall customer experience. Additionally, we plan to build a robust and scalable hybrid infrastructure that caters to our evolving market demands while fostering a collaborative culture that nurtures innovation and keeps us at the forefront of the dynamic financial landscape.