Spend-IT: Cholamandalam's tech spend surges by 49% in FY24

The tech spend of Cholamandalam Investment and Finance Company has been on an uptick for the last five years. For the first time, the tech spend has surpassed the ₹100 crore-mark. In FY24, it recorded a 49% jump to ₹106 crore.

The company has doubled down on tech to enhance customer experience and optimise operational processes. It has focused on data-driven approaches and fortified its cybersecurity measures. Chola's digital strategy encompasses comprehensive system development across all operational layers. To enable seamless peer interaction, the company's 'Systems of Engagement' manages customer touchpoints through CRM, loan origination systems, apps, and partner integrations. To reprocess the data coming from different data sources for further use, Chola has put a centralised database in place, which also helps in improving data efficiency and focuses on data visualisation and MIS reporting.

In FY24, the company's IT team significantly enhanced digital capabilities within the Loan Origination System by integrating e-KYC at sourcing, automated bureau checks during underwriting, and advanced bank statement analysis. It also introduced digital document management, e-signing, and e-stamping in the disbursement stage. Chola's digital initiatives focus on the elimination of friction at the process and data level for all participants across the product value chain — customers, employees, and ecosystem partners.

Additionally, the digital Collection Management System received upgrades leveraging automation, analytics, and technology for streamlined end-to-end collection processes.

Moreover, it consolidated its various apps into the comprehensive “Chola One” app. Looking ahead, the app will undergo further enhancements to seamlessly integrate new features, functionalities, and to further improve user experience, according to the company.

It keeps a tab on the complex and dynamic financial compliance culture by leveraging technology. Compliances are monitored in real time and vigilantly tracked for implementation by a team of over 20 professionals.

Chola's online auto ecosystem, Gaadi Bazaar, has incorporated a digital solution in its operation. It witnessed traction in the used vehicle space. The arm offers generative artificial intelligence (AI)-based search engines and other innovative features like WhatsApp bots for promoting used vehicle sales.

The application of technology, backed by a strong dealership network leveraged from its Vehicle Finance division, gives Gaadi Bazaar a solid foundation for building a successful digitally driven business.

Retaining its existing customers through innovative technology and mobile applications with limited intervention of field force will be a key focus for Chola. Analytics-based credit underwriting with pre-approved offers for both new and existing customers will help with faster loan delivery. As per the company, AI-based collection monitoring and digital modes of collection in early buckets will help to curtail flows and reduce costs.

Digital solutions are not limited to the periphery; they have shifted to the core business operations. The technology stacks built and made available by the government, regulators, and the ecosystem over the last decade have facilitated this transition. In tune with these changes, Chola has been transforming into a digitally driven business from being an organisation that conducts business digitally.

Chola was established in 1978 as the financial services arm of the Murugappa Group. It started operations as an equipment financing company and has today emerged as a comprehensive financial services provider offering vehicle finance, home loans, loans against property, SME loans, secured business and personal loans, consumer & small enterprises loans, and a variety of other financial services to customers. The company now operates from 1,387 branches across India with assets under management (AUM) of over ₹1.5 lakh crore.