Industry: NBFC
Department: FINANCE
Process: LOAN PROCESS
5,46,000
hours saved annually
100%
accuracy achieved
Adherence
to stringent RBI guidelines
The Client
Muthoot Finance is one of the leading non-banking financial companies (NBFCs) in India, handling a high volume of loan applications daily through its Core Banking System (CBS) portal.
The Challenge
With a growing customer base and a daily volume of 5,000–7,000 loan applications, Muthoot Finance relied on a team of 15–20 employees to manually review and process each loan request. This manual approach took approximately 10–15 minutes per transaction, making the process highly time-consuming and error-prone. The increasing workload not only led to inefficiencies and employee fatigue but also limited the company’s ability to scale operations effectively in line with its rapid growth.
Challenges faced
- Time-intensive and repetitive manual processing
- Higher chances and risk of human error
- Inability to scale with rising transaction volumes
- Increased operational burden on employees
The Solution
RPATech implemented an intelligent automation solution by deploying 3 unattended bots designed to handle the rule-based validation of loan applications. These bots were trained on the company’s pre-defined approval/rejection criteria and were capable of processing each transaction in just 1–2 minutes. Once the bots complete their checks, they generate an MIS report summarizing the approved and rejected applications. This report is then sent to human staff for a final review and approval, ensuring compliance with RBI guidelines and internal loan disbursement policies while significantly reducing manual effort.
Key aspects of the solution
- Automation of all rule-based steps in the loan approval process
- Generation of MIS logs for each transaction for full traceability
- Human-in-the-loop model maintained for final decision-making
- Seamless integration with existing CBS portal and processes
Results
KPI | Pre-Automation | Post-Automation |
Average Handling Time | 10–15 minutes per transaction | 1–2 minutes per transaction |
Human Involvement | 15–20 employees manually reviewing | 3 unattended bots |
Accuracy | Prone to manual errors | 100% accuracy in execution |
Operational Hours Utilized | Full-day effort from staff | Fully automated processing |
Reporting | Manually and inconsistent | Auto-generated MIS reports |
Adopting automation for Muthoot Finance is more related to the changing trend in technology. We're growing exponentially and automation is most important to match with that scale of growth... The advantages we've seen with automation is more related to compliance. We're also trying to create a mindset of automation within the organization.
Piyush Srivastava
Head of IT- North, Muthoot Finance
The Outcomes
- 5,46,000 hours saved annually
- Zero errors through strict rule enforcement
- Adherence to stringent RBI guidelines and internal policies
- Improved process efficiency and better resource utilization
