Poonawalla Fincorp implements AI to enhance debt management

Poonawalla Fincorp Limited (PFL), a non-banking finance company (NBFC) promoted by the Cyrus Poonawalla Group, on Monday, said that it has implemented an artificial intelligence (AI)-powered debt management platform to streamline its collection processes.

The company, focused on Consumer & MSME Lending, said that the new technology features an autonomous engine that analyses customer interaction data across digital communications, telecalling, and field operations. It employs over 100 micro-strategies tailored to customer profiles and communication preferences, reducing manual effort by 4-5 days.

The Pune-headquartered firm has also automated its channel allocation process, cutting the time from 3-4 days to under three hours for engaging with customers post-delinquency. The platform incorporates AI and machine learning predictive models that deliver 2-3 times sharper risk assessment compared to traditional methods.

“Our adoption of AI in debt management is about smarter, data-driven decisions that improve outcomes,” said Arvind Kapil, Managing Director & CEO of Poonawalla Fincorp.

“By combining predictive insights with governance controls, we are redefining collection strategies to be more effective, adaptive, and responsive to customer engagement,” he added.

The company has integrated Generative AI-enabled automated call audit capabilities to monitor collection agents’ interactions, ensuring compliance with governance standards. These technological improvements have boosted efficiency over the past six months.

In March, Poonawalla Fincorp developed an underwriting solution in collaboration with IIT Bombay to automate and streamline the credit evaluation process. The company said that this solution aims at boosting its credit managers' productivity by 40 per cent in retail lending.

Notably, in February, the company partnered with ServiceNow to implement AI-powered solutions for audit and governance. This initiative aims to improve efficiency, automation, and compliance in its operations. The company has also integrated AI into its human resource (HR) processes to manage risks and enhance accuracy in hiring.

Poonawalla Fincorp, whose financial services include various loan products such as pre-owned car finance, personal loans, and business loans, operates across 18 states and two Union Territories.

On Friday the company reported an 81.2% year-on-year (YoY) decline in net profit at ₹62.3 crore for Q4FY25 on the back of one-time expenses and prior provisioning. The company’s revenue from operations however rose over 27 percent YoY to ₹1,166.27 crore. 

The company which employs approximately 3,590 people also reported assets under management of ₹35,631 crore as of March 31.