Arohan Financial Services Limited has partnered with Leegality's Document Infrastructure Platform to digitally modernize its clients' JLG loan documentation procedures. Arohan, a prominent NBFC-MFI with operations in India's financially underserved low-income states, considers this collaboration as a logical extension of its aim of 'Cashless at the front and Paperless at the back.' Through the Zero Paper JLG Loan procedure, Arohan Financial Services Limited has saved over 300 man-hours PER DAY by utilizing Leegality's customized solution.
Microfinance in India is rapidly responding to banking sector technical advancements. Increased connection and technical advancements have the potential to accelerate growth, increase markets, and enhance service delivery. Microfinance has the potential to play a critical role in promoting financial inclusion and development in India's rural and Tier 3/4 urban regions. However, given to the nature of microfinance operations – namely, the distribution and processing of paperwork – they present logistical and operational issues. Technology can assist in overcoming these obstacles — and making microfinance easier to handle.
High reliance on physical paperwork resulted in several challenges for Arohan Financial Services, such as:
• Verification of all loan application paperwork, Know Your Customer (KYC) documentation, and identity documents.
• Keeping records in accordance with RBI regulations
• Transportation and courier expenses
• Physical verification personnel
Investing in these areas was time-consuming and costly for the company. The firm was looking for a solution that would decrease its administrative burden and give an easy-to-use platform for staff and consumers to adapt to. Legality developed a bespoke solution to support Arohan's JLG loan paperwork execution via remote and branch-led (assisted) execution. Together with Leegality's Face Capture, Leegality's Secure Virtual Signature assures % compliance and security in every transaction.
Leegality eliminates the requirement for Arohan's loan officers to carry stacks of documentation; they can complete paperwork using only their tablets! Customers can sign in in person or via remote access. Signed papers are automatically kept on Arohan's Document Management System, effectively eliminating the need for travel and storage. Arohan has enhanced its products by automating the whole client lifecycle including post-sales support touchpoints.
As a firm that is committed to becoming 'Cashless at the Front and Paperless at the Back,' it seeks to provide superior service to its clients through totally digital paperwork while also lowering operational expenses for both the customer and the company. Client origination is now paperless, and all disbursements are now sent directly to the client's bank account. In comparison to the manual offering, these digitalization initiatives enable the organization to achieve greater portfolio management, enhanced service, and decreased time.