Muthoot FinCorp boosts operational efficiency by 50% using Oracle Cloud infra

Muthoot FinCorp, one of India's non-banking finance companies (NBFCs) and part of Muthoot Pappachan Group, has boosted its system performance and operational efficiency by 50% by partnering with U.S.-headquartered technology provider Oracle.

The financial company said that it has migrated its on-premises mission-critical enterprise resource planning (ERP) system to Oracle Cloud Infrastructure (OCI) as part of its hybrid cloud strategyand the supporting Oracle databases to Oracle Base Database Service.

Muthoot FinCorp offers a wide range of financial products and services including gold loans, small business loans, and affordable housing loans to more than 100,000 customers daily through 3,600 branches across India. To continue to grow its business and meet changing customer expectations, Muthoot FinCorp needed to be able to effectively scale the management of loan processing and other financial services.

Nishit Shrivastava, chief technology officer, Muthoot FinCorp said that the key focus of the company has been adopt the latest technologies to better serve customers. After careful evaluation, Muthoot FinCorp decided to migrate its mission-critical ERP system to Oracle Base Database Service on OCI. With OCI’s fast performance, high availability, and built-in security, Muthoot FinCorp has the foundation it needs to continue to focus on growing its customer base.

“Moving our ERP applications and Oracle databases to OCI has revolutionized our business operations and provided us with unparalleled scalability, improved our liquidity management, and enhanced system security. OCI’s monthly 10TB of data egress at no charge has helped us reduce IT costs significantly," he said.

Shrivastava added that following this successful migration, the company aims to further deepen our relationship with Oracle by implementing additional OCI services such as data analytics, AI, and machine learning. "Our goal is to enhance our capabilities and strengthen our position as the most trusted financial service provider in the country,” he said.

“Oracle Cloud Infrastructure provides Muthoot FinCorp with the flexibility and scalability based on workload, regulatory, and latency needs. This strengthens Muthoot FinCorp’s ability to innovate and resolve its most complex business challenges, enabling it to embrace advanced technologies and meet changing customer expectations," Premalakshmi PR, vice president, Technology Cloud, Oracle India said.

In March, Muthoot FinCorp partnered with Veefin Solutions to launch supply chain finance (SCF) operations in India. This includes facilitating the onboarding of suppliers and vendors, underwriting their loans using the Loan Origination Solution (LOS), and managing transactions through the Loan Management Solution (LMS). Additionally, Veefin’s reporting and business intelligence solution will offer analysis capabilities, the company said.

That said, with Oracle Base Database Service on OCI, Muthoot FinCorp has been able to maintain control over its data and lower costs by leveraging automated database lifecycle management, built-in low-code application development, and compute scaling with pay-as-you-go pricing.
To meet India’s regulatory compliance requirements, Muthoot FinCorp utilizes the Oracle Cloud Mumbai Region and the Oracle Cloud Hyderabad Region for redundancy and disaster recovery capabilities.

“Financial services organizations like Muthoot FinCorp must quickly adopt new technologies to meet data security and locality requirements in an always-evolving regulatory environment,” said Premalakshmi.

Oracle India which reported a 52 per cent year-over-year (YoY) increase in cloud consumption during Q3 FY24, serves customers in India across several industries including BFSI, Healthcare, public sector, manufacturing, IT/ITes, and digital natives.