Best Emerging Technology Solution - HIGHLY COMMENDED
TVS Credit
A leading non-bank financial company (NBFC) in India, TVS Credit, has transformed its customer experience and operational efficiency by adopting an API-based UPI AutoPay recurring mandate module. By reducing the mandate registration process for new loans from up to a full day to just two minutes, TVS Credit has elevated customer onboarding to a new standard. The project has driven digital repayment adoption rates from 41% to 53% within six months of implementation while streamlining internal processes and boosting productivity.
TVS Credit Services Limited (TVS Credit) is one of India’s leading and diversified non-banking financial companies (NBFCs), registered with the Reserve Bank of India (RBI). With over 49,300 touchpoints and nearly 18 million customers across 25 states in India, the company aims to empower Indians to dream bigger and fulfil their aspirations.
TVS Credit sought to improve its manual loan repayment and reconciliation processes. Customers were previously onboarded through an offline registration mandate and verification by banks – a time-consuming process which could take up to a full day to complete. Additionally, the manual reconciliation processes was lowering efficiency for the treasury team, delaying cash flow visibility and complicating payment rejection handling.
In collaboration with HSBC, TVS Credit adopted the Unified Payments Interface (UPI) AutoPay recurring mandate system, supported by APIs. This innovative solution digitised the entire loan repayment process, enabling real-time onboarding and seamless collection of repayments. Using unique virtual payment addresses (VPAs), customers could register their mandates by providing their mobile number and VPA. The API would instantly trigger an authentication request via the customer’s payment service provider (PSP) app, completing the registration within minutes.
Streamlining operations
The UPI AutoPay system has eliminated manual intervention in the loan repayment process. Funds are now automatically debited on schedule, enabling timely collections while ensuring a seamless customer experience. TVS Credit also receives real-time notifications for successful transactions or payment rejections, allowing immediate action to resolve issues and increasing overall transaction success rates. The enhanced reconciliation capabilities enable the treasury team to map collections against loans on the same day, significantly improving cash flow visibility.
Another advantage of the solution is its scalability. As TVS Credit continues to grow its customer base and transaction volumes, the API infrastructure ensures the system can handle increasing demand without requiring additional resources. This has strengthened the company’s operational resilience and given it a competitive edge in the NBFC market.
Driving financial inclusion
In addition, the adoption of UPI AutoPay has produced notable outcomes for TVS Credit. Customer onboarding times have been reduced to just two minutes, transforming the customer experience, while digital repayment adoption has surged to 53%, a significant leap in just six months.
As one of India’s first commercial loan providers to adopt UPI technology, TVS Credit has set a benchmark for digitisation in the sector. The company is a worthy Highly Commended winner of the Best Emerging Technology Solution at the TMI Awards as it has prioritised speed, convenience, and scalability to enhance its service offering and advance its mission of financial inclusion for millions of Indians. This initiative exemplifies how innovation in treasury and payment processes can drive growth, efficiency, and customer satisfaction.
