NBFC is a simple business, and that's what makes it challenging: Prashant Utreja, CPO, TVS Credit

How does a Non-Banking Financial Company (NBFC) work? Prashant Utreja, Chief People Officer at TVS Credit, one of the leading NBFCs in the country, told us on the sidelines of the Great Place to Work event held recently in Mumbai.

We take money from financial institutions, we have the company’s funds, and we give a loan to a customer. We then stay engaged with that customer until the loan is paid back in full, and that’s where our spread comes from. So, you have to identify the right customer segment for yourself, offer them the right product, help them fulfill their aspirations and expectations, and ultimately ensure successful repayment,” he said.

However, the challenge is that there are too many NBFCs selling the same products and competing for the same customers. Creating differentiation based on products is a huge task. And this is where the role of the right talent comes into play.

"On the surface, it's a very simple business. But the underlying theme is, what more should you do with a customer so they keep coming back to you?" said Utreja.

According to him, operating as a diversified NBFC, TVS Credit serves multiple product segments and the differentiation they are trying to create is that if a customer comes to them for a specific product, the company should also be able to meet their other lending needs. And if they are satisfied with our products and services, they will continue to come back to us for their other needs as well. And then, obviously, there is higher efficiency, cost optimisation, and so forth.

But here lies the challenge, which all talent leaders in the NBFC sector are trying to solve. Getting the workforce to understand the customer-centric nature of the job is key.

"The biggest challenge from the talent perspective is that, although a lot of talent feels it's (NBFC) an execution-driven business, there's a strong element of customer-centricity around it. How to truly embed that customer-centricity in the NBFC space is something talent in the industry is working on, and it's the message senior leaders are trying to instill," explained Utreja.

"Just as in any industry, you need people who can truly understand the deeper, underlying needs of customers and help them satisfy those needs. That is a bigger challenge because our products aren't very unique," the leader stressed.

The pleasant experience provided by relationship managers servicing loans is of utmost importance for any non-banking finance company to create repeat customers. According to Utreja, the industry's challenge is to keep those sets of people rooted with you, as they are three to four times more productive than others who don't prioritise customer-centricity.

"Customer-centricity is one of the key pillars of the business we're in, right? Because there would be so many NBFCs vying for the same consumer. But it's the relationship, the personal touch, and the human connection you form to understand the consumer's very important problems," said the leader.

While Utreja believes that attitudinal change is there, it is essential to continue grooming those sets of people by providing them with higher learning opportunities and growth opportunities and sustaining and retaining them with the organisation.

As far as hiring is concerned, Trust, Value, and Service are at the cornerstone of the organisation for TVS Credit. "Our competency framework and leadership trait framework are centred around that. We look for people who, in some form or shape, exude these values. Similarly, when people join the organisation, our appreciation and recognition systems are centred around these values. So, when you ask what we do, whenever there are instances where an employee goes out of their way to provide a higher customer experience, those are the people who are immediately recognised and appreciated in our system."

In their learning and development framework, particularly for career progression from individual contributor to management roles, specific behaviours and traits are highly emphasised and carry significant weight in performance evaluations. These qualities, said Utreja, are central to their values and are consistently reinforced and discussed in all learning sessions, guiding employee growth and advancement within the organisation.