Q4 FY23 Performance and Business Highlights
Integrating Risk Management in Every Operating Process
CreditAccess Ⓡ
Grameen
Microfinance is a Collection Business, hence Risk Management is Integral to Core Strategy and Operating Processes
Contiguous
District-based
Expansion
Target Customer
Segment
Customer
Due-Diligence
Lending Model
Customer
Engagement
Model
Employee
Incentive
Structure
Employee
Rotation Policy
Consistent
replication of
processes/
controls
Better
understanding of
social/
economic/
political/ climate
risks, historical
PAR, competition
intensity
High quality
growth
Focus on rural
markets:
•Less served, high
potential
Better control &
asset quality
Focus on new-to-
credit customers:
• Shapes customer
behaviour and
credit discipline
• Increases loyalty
Self-chosen
group formation
CGT, GRT, house
visits
• Comprehensive
bureau check for
all earning family
members help to
manage
competition and
overleveraging
• Responsible loan
usage due to
flexible products/
repayment
options
• Better cash flow
management
• Reduced risk of
overleveraging
• More frequent
engagement
through weekly
model
• Early
identification of
imminent stress
• Better control on
collections
• Faster recovery
• No incentive to
push higher
disbursements
• No impact on
incentives due to
external impact
on collections
• Incentivization
for process
adherence,
customer
training,
customer
servicing
• Annual rotation
of LOs and tri-
annual rotation
of BMs
• Audit & Quality
Control team
rotation within
the state
• Reduces person
dependence and
provides multiple
checks
• Avoids over-
leveraging
Early Risk Recognition and Conservative Provisioning
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