Bajaj Finserv Limited · NSE:BAJAJFINSV
Bajaj Finserv — Investor Day (December 2024)
170 slides from Bajaj Finserv's investor day presentation, Dec 10, 2024
Slide 1: Intimation under Reg. 30 - Submission of investor presentation
10 December 2024 To To Corporate Relations Department. Corporate Listing Department. BSE Limited National Stock Exchange of India Ltd 1st Floor, New Trading Ring, Exchange Plaza, 5th Floor Rotunda Building, P J Tower, Plot No.C-1, G Block, Dalal Street, Fort, Bandra-Kurla Complex, Mumbai 400 001 Ban
Slide 2: Investor Day Presentation 2024
INVESTOR DAY PRESENTATION 2024 Bajaj Finserv Limited Sanjiv Bajaj 10th December 2024 CMD, Bajaj Finserv 00:45:00
Slide 3: Bajaj Finserv - Our Journey
BAJAJ FINSERV To be the financial services lifecycle partner to every Indian Our Journey… 2
Slide 4: Bajaj Group Structure
Bajaj Group Structure Bajaj Holdings & Investment Limited (Listed) 41.53% Bajaj Finserv (Listed) Financial Services Arm 51.34% 74% 74% 80.13%1 100% 100% Bajaj Allianz General Bajaj Allianz Life Bajaj Finserv Health Bajaj Finance (BFL) Bajaj Finserv Direct (Including Vidal Bajaj Finserv Asset Insuran
Slide 5: Bajaj Finserv Vision
Bajaj Finserv Vision A diversified financial services group with a pan-India presence Life cycle Family, Health & Investment/ needs of Asset acquisition Asset protection Income Wealth Retirement Individual & SME Protection management customers Loan (Personal, General Insurance, General, Health & Lif
Slide 6: Bajaj Finserv - Journey So Far
Bajaj Finserv- Journey So Far Bajaj Health is launched Bajaj AMC & Bajaj with focus on Access and Ventures are launched Financing of Health 3000 2,689 2,719 2,611 2500 2001: Life & General BFSL is incorporated as Insurance businesses are wholly-owned subsidiary Vidal acquisition is incorporated as J
Slide 7: Bajaj Finserv - Journey So Far
Bajaj Finserv- Journey So Far 2007 2008-09 2010-11 2012-13 2014-15 2016-17 2018-19 2020-21 2022-23 2024 Consumer Durable Loan Against Developer Unsecured BL Gold Loan Deposits E-commerce Payments Mutual Funds Tractor Financing Securities Finance Expanded Loan Against Existing Member Lifecare Co-bran
Slide 8: India Opportunity
India Opportunity 7
Slide 9: India: Macro
India: Macro India remains the fastest growing economy surpassing China in 2021 12 10 9.69 8.00 8.26 8.15 8 7.41 GDP growth in Percent 6.80 6.99 7.02 6.45 6.46 6.47 6 3.87 4 2 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025E 2026E -2 -4 -6 -5.78 India China Advanced economies Emerging
Slide 10: India: Opportunity in Every Household
India: Opportunity in Every Household Per Capita GNI is rising, leading to higher disposable income 3000 2X Disposable Income in 10 Years 2,514 2500 Disposable Income (in USD) 2000 1500 1,278 1000 500 0 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Per Capita GNI is estimated to r
Slide 11: India: Opportunity in Every Household
India: Opportunity in Every Household Behavioral Shift in Savings Pattern Household (HH) Savings (Deposits) & Borrowings: Annual Flows as a % of GDP Gross household 25.8% 20.8% 23.0% 24.2% Savings Physical assets (real estate, gold etc) continue to grow – Opportunity for our gold 15.1% loan, mortgag
Slide 12: Behavioral Shift in Financial Assets - Savings Pattern
Behavioral Shift in Financial Assets- Savings Pattern Financial assets Household Financial Savings: Annual Allocation across Asset Classes Deposits & Currency 33% 45% 50% 56% 67% Insurance Savings 21% 19% 15% 13% Capital Markets 18% (Mutual Funds, 4% 7% Equities & Debt) 17% 2% 2% 31% 33% Pension Fun
Slide 13: Income Pyramids: Unlocking Demographic Potential
Income Pyramids: Unlocking Demographic Potential FY23: 315 MM FY27: 331 MM >145 Ultra HNI Experience centric 145 to 100 Super HNI offerings to increase relevance to this 100 to 72 HNI 15.5 24.5 segment 72 to 44 MM MM Upper super affluent Life Goal Planning, In Rs. Lakh per annum (+58%) 44 to 30 Lowe
Slide 14: Income Pyramids: Unlocking Demographic Potential
Income Pyramids: Unlocking Demographic Potential FY23: 315 MM FY27: 331 MM >145 Ultra HNI Experience centric 145 to 100 Super HNI offerings to increase relevance to this 100 to 72 HNI 15.5 24.5 segment 72 to 44 MM MM Upper super affluent Life Goal Planning, In Rs. Lakh per annum (+58%) 44 to 30 Lowe
Slide 15: India: MSME Boost
India: MSME Boost Formalization of MSMEs & Credit Expansion at Scale MSME formalizations: MSME Lending: Ecosystem data footprint on the rise Annual originations expanding rapidly 500 60 450 NTC% for 50 • Several reforms have Udyam 248L 400 42% 41% 37% 39% Registrations 13L MSME increased the richnes
Slide 16: India: MSME Boost
India: MSME Boost Formalization of MSMEs & Credit Expansion at Scale MSME formalizations: MSME Lending: • MSMEs are expected to contribute to 50% Ecosystem data footprint on the rise Annual originations expanding rapidly of GDP by 2030, employ ~150 mn and 500 60 account for 60% of Indian exports 450
Slide 17: Bajaj Finserv - Our foundational blocks
Bajaj Finserv – Our foundational blocks Efficient capital Lifecycle partner Customer Obsession Culture & people utilization 16
Slide 18: Capital Efficiency: Our Insurance Companies
Capital Efficiency: Our Insurance Companies General Insurance Life Insurance BAGIC Industry Top 5 BALIC- % market share of NBV Combined Market share of New Biz FY20 FY22 FY24 Ratio value (NBV) (5 yr avg) 99.6% 117.5% 106.3% among Top 5 Pvt. peers % 3.4% 5.8% 7.4% GWP to Capital invested - BAGIC GWP
Slide 19: Capital Efficiency: Bajaj Finance
Capital Efficiency: Bajaj Finance BFL ROE Vs Industry Average BFL ROA Vs Industry Average 25% 7% 6.4% 22% 22% 6.0% 20% 20% 6% 20% 19% 18% 4.9% 16% 5% 4.6% 4.7% 18% 15% 17% 14% 15% 3.8% 4% 3.5% 15% 12% 14% 14% 9% 3% 10% 11% 2.3% 2.4% 2.4% 8% 2.2% 7% 10% 1.9% 1.9% 2% 1.5% 5% 2.0% 1.6% 1.7% 1% 1.3% 0.9
Slide 20: Bajaj Finserv - Our foundational blocks
Bajaj Finserv – Our foundational blocks Efficient capital Lifecycle Partner Customer Obsession Culture & people utilization 19
Slide 21: Lifecycle partner
Lifecycle partner Create constant value across the customer lifecycle, build sustainable business 20
Slide 22: Customer Lifecycle Partner
Customer Lifecycle Partner Digital Utilities Consumption Daily Household Consumer Created a strong market for Durable Services consumer lending products for individual, Recreation and Retail Spends households and MSMEs Entertainment Travel and Business / Dining Professional Loans BFS ‸‸ CUSTOMERS Fu
Slide 23: Customer Lifecycle Partner
Customer Lifecycle Partner Digital Utilities Consumption Daily Household Consumer Established strong data analytics Durable Services to deepen wallet share and strengthen Recreation and Retail Spends secured lending business Entertainment Travel and Business / Dining Professional Loans BFS ‸‸ Simult
Slide 24: Customer Lifecycle Partner
Customer Lifecycle Partner Digital Utilities Consumption Daily Household Consumer Life Insurance: Savings and protection Durable Services coupled with securities business and the Recreation and Retail Spends most recent asset management company Entertainment added value to customers Travel and Busin
Slide 25: Customer Lifecycle Partner
Customer Lifecycle Partner Digital Utilities Consumption Daily Household Services Consumer Durable Enablers: Payments, rewards Recreation and Retail Spends and partnership for granular and Entertainment seamless customer experience Travel and Business / Dining Professional Loans ‸‸BFS CUSTOMERS Fund
Slide 26: Customer Lifecycle Partner
Customer Lifecycle Partner Digital Utilities Marketplace Consumption India Stack Daily Consumer Household Durable Services Recreation Retail ONDC and Spends GST Entertainment Travel and Business / Dining Professional Loans Gen AI ‸‸BFS Account Aggregator CUSTOMERS Fund Lifestyle Transfers Asset Crea
Slide 27: MSMEs: Increased Strategic focus across our companies
MSMEs: Increased Strategic focus across our companies MSME type Size % Turnover Slabs (Rs) MSME lending (Bajaj Finance ) product stack General Insurance Affordable Home loan Property Liability Small ticket Business Loan Business Loan Secured Specific Covers Life Insurance Medical Equipment Protectio
Slide 28: BFS Group Company Milestones in the year gone by
BFS Group Company Milestones in the year gone by BAJAJ BAJAJ BAJAJ HOUSING FINANCE FINSERV HEALTH FINANCE Strategic acquisition of Largest NBFC in India in IPO Vidal Healthcare terms of PAT and AUM BAJAJ BALIC BAGIC AMC Fastest-growing Crossed AUM Best Combined Ratio mutual fund ₹1,00,000 Cr amongst
Slide 29: Bajaj Finserv - Our foundational blocks
Bajaj Finserv – Our foundational blocks Efficient capital Lifecycle Partner Customer Obsession Culture & people utilization 28
Slide 30: Customer Obsession
Customer Obsession Continuous innovation, responsible growth 29
Slide 31: BFS Reach
BFS Reach BAJAJ FINANCE 9.40 crore unique customers 4,202 Branches 207,000+ POS (Urban: 1,585 | Rural: 2,617) (Active point of sale) 15 crore unique customers BAJAJ ALLIANZ GENERAL INSURANCE 170+ Corp. Agents and Banks 78,700+ POS, 61,700+ Individual Agents 1.5 crore unique customers BAJAJ ALLIANZ L
Slide 32: Anticipate Customer's needs before they do
Anticipate Customer’s needs before they do ₹23.5 trillion- Monthly Rising Income India Stack Powered the 1.38 billion Adhaar Transactions Value in Financial Inclusion Generated October’24 OCEN- The National Agri stack ONDC facilitated 100+ Account Aggregator ~112 application layer has • Land records
Slide 33: Anticipate Customer's needs before they do
Anticipate Customer’s needs before they do Financial Inclusion Innovation Ecosystem Gen AI Account Aggregator integration ONDC marketplace 300+ projects across companies to across lending products focus on leveraging Gen AI Hamara mall - exclusive BFL 3.4 mm new to credit in H1FY25 marketplace on ON
Slide 34: Bajaj Finserv - Our foundational blocks
Bajaj Finserv – Our foundational blocks Efficient capital Lifecycle Partner Customer Obsession Culture & people utilization 33
Slide 35: Foundational Blocks - to build our culture
Bajaj Finserv’s Foundational Blocks- to build our culture Founders Ethos A place where innovation, agility and ownership thrives, creating responsible leaders who build long term profitable businesses, to delight our customers Efficient capital Lifecycle partner Customer Obsession Culture & people u
Slide 36: BFS Culture Wheel
BFS Culture Wheel Founders Ethos Efficient capital Lifecycle partner Customer Obsession Culture & people utilization 35
Slide 37: Role of Bajaj Finserv
Role of Bajaj Finserv Building Strategy Ensuring Good Governance Collaboration and Best Practice Customer Experience, Investments, Corporate Social Responsibility OneFinserv leadership ESG (CSR) Efficient capital 36 Lifecycle partner Customer Obsession Culture & people 36 utilization 36
Slide 38: Bajaj Beyond - CSR (1/2)
Bajaj Beyond- CSR (1/2) YOUTH of Today 1,00,000+ benefited GRANT MAKING BFSI Skilling Employment, Self-Employment & Enterprise 20,284 Women Empowered 10,152 Persons with Disabilities Received NCVET Letter of Intent as through Training and Signed MoUs with NSDC and AICTE a Dual Awarding Body Skilled
Slide 39: Bajaj Beyond - CSR (1/2)
Bajaj Beyond- CSR (1/2) YOUTH of TOMORROW 6,00,000+ Benefited Child Education Child Health Focused on Digital & Interventions Address Foundational Learning, Cleft-lip/Palate, Mental Health, Diabetes, Heart Vocational Education, Conditions, Pediatric Scholarships etc. Cancer, & Epilepsy Public-Privat
Slide 40: Emerging Businesses
Emerging Businesses Creating value across customer life cycle 39
Slide 41: Bajaj Finserv Health
[3 FINSERV BAJAJ BAJAJ FINSERV HEALTH 40
Slide 42: Bajaj Finserv Health - Strategy
Bajaj Finserv Health Strategy Health Tech venture seeking to Integrate the fragmented healthcare delivery ecosystem with technology and financial services on a digital platform to bring digital quality healthcare closer by connecting providers to consumers through products, networks & technology 41
Slide 43: Bajaj Finserv Health - Business Model
Bajaj Finserv Health- Business Model PRICING ADVANTAGE FOR PLATFORM & PRODUCT PRODUCTS & SERVICES CAPABILITY Network Stack Technology Solutions CONSUMER STACK PAYER STACK Doctors Health App/Web Corporates Health Insights Dental Cashless OPD + IPD Non-Life Insurer Diagnostics Cohort Formation Managed
Slide 44: Bajaj Finserv Health - Milestones
Bajaj Finserv Health- Milestones Cashless OPD Wellness benefits products Partner with Acquisition of launched with launched with National Digital Vidal Healthcare Corporates Health Insurers Health Mission • OPD network Awarded Health • 100% acquisition • Tailored expanded to Service Provider of Vida
Slide 45: Bajaj Finserv Direct - Bajaj Markets
Bajaj Finserv Direct Bajaj Markets 44
Slide 46: Bajaj Markets - BFSI Marketplace Strategy
Bajaj Markets- BFSI Marketplace Strategy Bajaj Markets is a wide-choice (open architecture) diversified marketplace for Financial Services which attracts large number of new-to-Finserv consumers, creates awareness & discovery of the Finserv brand and cross-sells products by leveraging Technology & A
Slide 47: Bajaj Markets - BFSI Marketplace Differentiators
Bajaj Markets- BFSI Marketplace Differentiators Open Architecture Supply- side Demand-side Marketplace Choice of manufacturers Digital Platform Consumers 90+ Brands (Banks, FIs, Insurance Website & App | API-in-a-box with 200+ Mn yearly traffic Companies & AMCs) embedded rule engine 37.5+ Mn App Ins
Slide 48: B2C | BFSI Marketplace (Bajaj Markets)
B2C | BFSI Marketplace (Bajaj Markets) Vertical Partners Lending 52 Cards 10 Insurance 18 Investment 12 VAS 6 Total Unique Partners 89 Category Partners Lines of Businesses Bank 12 24 NBFC 22 33 Fintech 21 26 HFC 8 16 Insurance 18 19 VAS 6 6 Broker 2 6 Total 89 130 47
Slide 49: Bajaj Finserv
[3 FINSERV BAJAJ BAJAJ FINSERV 48
Slide 50: Growth Trajectory of the Group
Growth Trajectory of the Group All Figures in Rs. Crore Growth for the 5 YR Particulars FY 14 FY 19 FY 23 FY 24 10 YR CAGR year CAGR Bajaj Finserv (Consolidated) Net total Income 15,555 42,606 82,072 110,383 34% 21% 22% Profit after tax 1,544 3,219 6,417 8,148 27% 20% 18% Net Worth 9,311 23,766 46,4
Slide 51: Long Range Strategies of our companies
Long Range Strategies of our companies Bajaj Allianz General Insurance Bajaj Allianz Life Insurance Bajaj Finance
Slide 52: Our aspiration: Long Range Strategy for 2024-29
Our aspiration: Long Range Strategy for 2024-29 Bajaj Finserv (Consolidated) Total Income Profit After Tax Customer Franchise (INR Lakh Crore) (INR Thousand Crore) (in Million) 3 20 200 1.1 8 90 2024 2029 2024 2029 2024 2029 Efficient capital utilization Lifecycle partner Customer Obsession Culture
Slide 53: Thank You
Thank You 52
Slide 54: Disclaimer
Disclaimer All Figures in Rs. Crore This presentation has been prepared by Bajaj Finserv Limited (the “Company”) solely for your information and for your use. This presentation is for information purposes only and should not be deemed to constitute or form part of any offer or invitation or induceme
Slide 55: Investor Day - BAGIC
Investor Day Dec 2024 BAGIC BAGIC: Bajaj Allianz General Insurance Company
Slide 56: Journey so far; Pillars of Growth; Tech Driven Insurer; Roadmap
Journey so far Pillars of Growth and Profitability Tech Driven Insurer Strategic Roadmap & Goals 2
Slide 57: Bajaj Allianz General Insurance: Consistent & unbeatable financial outcomes
Consistent & unbeatable financial outcomes 69% 15+ Crore 312% of Industry PAT Customers served Solvency Contributed to 69% in last 23 years of operations Highest in the of Industry PAT over industry for more last decade than a decade Rs. 12,000+ cr 25%+ Net worth RoE consistently Capital infusion of
Slide 58: Resilience in the most dynamic market
Resilience in the most dynamic market Realignment with Consolidation & recovery Pandemic De-tariffing era Dismantling of pool, Motor TP pool created - new entrants (SAHI, new 2021-25 v impact on profitability motor focused GIs) Rapid growth era – laid the (BAGICs losses were lowest) foundation of cu
Slide 59: Consistent outperformance vs. industry: 5-year trend
Consistent outperformance vs. industry: 5-year trend BAGIC INDUSTRY Top 5 PVT. GWP Growth - 5 Year CAGR 13.2% 10.1% 12.5% COR - 5 Year average 99.6% 117.5% 106.3% Total Cost to NWP - 5 year average 27.7% 31.4% 30.0% Cumulative UW Profit 5 years (27) Cr (132,057) Cr (15,365) Cr Cumulative PAT for 5 y
Slide 60: The building blocks of sustained leadership
The building blocks of sustained leadership Strongest Balance Sheet Sustained focus on Distribution disruption Balance between growth & Reinsurance support Capital management • Amongst first mover and profitability • Highest solvency • Lowest capital to on Motor OEM, • Largest reinsurance GWP Banca,
Slide 61: Pillars of Growth and Profitability
Journey so far Pillars of Growth and Profitability Tech Driven Insurer Strategic Roadmap & Goals 7
Slide 62: Drivers of Profitable Growth
Drivers of Profitable Growth STRATEGY Strive for market share growth in chosen business segments through a well-diversified product portfolio and multi-channel distribution supported by prudent underwriting. Emphasis on profitable growth. DRIVERS Robust Risk Customer Investments in Deeper Diversifie
Slide 63: Distribution strength: Largest distribution network
Distribution strength: Largest distribution network Bancassurance Agency & OEMs & Dealer Presence in Financial Direct Partnerships Retail Channels Partnerships ecosystems Inclusion • Over 150+ Bank • 100,000+ IRDAI • 45+ national tie- • Direct to • 25+ Partnerships • 4 Cr + farmers Relationships Age
Slide 64: Diversified Product Portfolio
Diversified Product Portfolio Large bouquet of products Industry first Innovative Products Key Insurance offerings across customer segments: Individual – Motor, Health, Personal Accident, Travel, Home, Pet, Cyber, Extended Warranty, Asset Protection, etc. Commercial – Motor, Property, Engineerin
Slide 65: Balanced Product Mix: Last 5 Years
Balanced Product Mix: Last 5 Years Motor Retail Health+PA+Travel Group Health Govt Health Commercial lines Agri (Crop Insurance) Others FY2023-24 29% 7% 14% 14% 18% 14% 6% FY2022-23 35% 8% 12% 1% 21% 18% 4% FY2021-22 35% 8% 10% 6% 21% 15% 4% FY2020-21 38% 8% 9% 1% 19% 20% 4% FY2019-20 41% 8% 9% 2% 1
Slide 66: Robust Risk Management
Robust Risk Management • Superior underwriting capability leading to consistently low Combined Ratio Pricing & • Diversified exposure across business lines & geographies Underwriting • Granular loss ratio modelling – geography, distribution, car make/model, vintage, etc. • Robust investigation, loss
Slide 67: Customer Obsession: Lowest Grievance Ratio
Customer Obsession: Lowest Grievance Ratio Large General Insurers Large Health Insurers Grievance ratio FY2020 FY2021 FY2022 FY2023 FY2024 Grievance ratio FY2020 FY2021 FY2022 FY2023 FY2024 Bajaj Allianz GI 0.61 0.71 1.05 0.92 0.73 Bajaj Allianz GI 0.11 2.49 1.75 1.36 1.07 Cholamandalam 0.31 0.72 1.
Slide 68: Customer Obsession: Highest NPS
Customer Obsession: Highest NPS Motor - NPS trend YOY Health - NPS trend YOY 100 70 72 75 100 70 57 65 63 68 69 54 50 Motor 50 Health 0 0 FY2020 FY2021 FY2022 FY2023 FY2024 FY2020 FY2021 FY2022 FY2023 FY2024 • Market Average NPS: 51 • Market Average NPS: 45 • BAGIC: 75 • BAGIC: 70 NPS of 75 for Moto
Slide 69: Tech Driven Insurer
Journey so far Pillars of Growth and Profitability Tech Driven Insurer Strategic Roadmap & Goals 15
Slide 70: Investing in digital transformation
We continue to invest in digital transformation to solidify our leadership as a digital insurer Hybrid Cloud Modern Cloud Data Digital Innovation Foundation Platform Distribution A thought through A new-age, scalable cloud Robust & scalable digital Leveraging next gen strategy that balances data pla
Slide 71: First large Insurer to transition core systems on the cloud
First large Insurer to transition core systems on the cloud High scalability & resilience to provide consistent experience even during peak season Time to market under 2 weeks for new products Faster innovation through adoption of new age technologies including Large Language Models for Gen AI 3.8+
Slide 72: Office in a Box approach for intermediaries
Our 'Office in a Box’ approach has significantly enhanced digital adoption among our intermediaries B-CARE Portal B-CARE App B-CARE BOT 80+ Products enabled for 30+ features like Quick Renewals, 50 Lakh+ policies in the Over 1 Lakh active users policy issuance Lead Management, etc. fiscal year 2024
Slide 73: Caringly Yours flagship app
‘Caringly Yours’, our flagship app continues to bring ecosystem services to our customers’ fingertips Health Eco System • Wellness Platform (Steps, Sleep, Workout, Running Distance Tracker, My Vitals) 50 Lakh+ • OPD Benefits (Prime Rider) Total App Downloads • Respect Senior Care Rider • Preventive
Slide 74: Farmitra, our award-winning app for Bharat
Farmitra, our award-winning app for ‘Bharat’ Live in 21 States and in Insurance Servicing 9 Languages • Claim intimation • Queries and grievance resolution 10 Lakh+ Downloads Value Added Services • Crop diagnosis and advisory • Weather forecast • Mandi prices Award-winning app that connects Farmers
Slide 75: Self-service API vault for digital integration of partners
Investments in self-service ‘API vault’ has helped accelerate Digital integration of partners 300+ Partners Digitally Integrated Amongst First insurer Snapshot to onboard new age payment & of e-commerce companies like Under a week PhonePe, Flipkart etc. partners Onboarding time integrated ~3.8 Crore
Slide 76: Customer & partner BOT
Our customer & partner BOT continue to drive self service & engagement Key Stats for FY2024 20+ Policy services including endorsements, claims registration & tracking for Motor, Health, Non-motor products ~6 Crore 32+ Products renewal issuance, in-app WhatsApp payment Messages Exchanged Multi-lingua
Slide 77: Partnership with tech startups & insure-techs
Partnership with tech startups & insure-techs has helped fast track innovation & bring an outside-in perspective 2,500+ 200+ 45+ Startups Scanned PoCs conducted Solutions Implemented BOING BOING BOING BOING BOING BOING VSO BOT HR Buddy P1 & P2 On FB2 On Alexa (Hindi) On GA On WhatsApp Robotic Applic
Slide 78: Computer vision and AI accelerating claims settlement
Technologies like Computer vision and AI have further accelerated the speed & accuracy of claims settlement Motor on the spot Health - Claim by direct click Leverages Computer Vision to settle claims in Leverages Intelligent Document processing & AI to under 20 minutes fast-track claims settlement S
Slide 79: Gen AI driving next wave of Digital Transformation
Gen AI coupled with traditional AI and automation driving next wave of Digital Transformation • Partnerships with leading LLM players including Microsoft, Anthropic & Google based on their strengths for relevant use cases • Few use cases are already live, with several others in pipeline GPT Workbenc
Slide 80: Leading to.....
Leading to..... Digital Issuance Digital Payments 66% 96.5% 74% 95.4% 2020-21 H1 2024-25 2020-21 H1 2024-25 • RPA enabled for 37 processes • Penny-free payments: Paperless bank verification TAT ↓ • Loader automation TAT ↓ from 60-90 mins to 5 mins from 48 Hrs to 3 Hrs • Realtime payments via NEFT: M
Slide 81: Key productivity metrics
Key productivity metrics Productivity improvement (GWP per employee) GWP Productivity 2.26 2.01 2.00 1.75 1.82 FY 2020 2019-20 FY 2021 2020-21 FY 2022 2021-22 FY 2023 2022-23 FY 2024 2023-24 Industry best EOM & CoR BAGIC vs Industry EOM (Cost/GWP) BAGIC vs Industry Combined Ratio BAGIC Industry CoR
Slide 82: Strategic Roadmap & Goals
Journey so far Pillars of Growth and Profitability Tech Driven Insurer Strategic Roadmap & Goals 28
Slide 83: Long Range Strategy 2024
Long Range Strategy 2024 SCALE UP OPTIMISATION DIFFERENTIATION REGULATION 29
Slide 84: Significant opportunities over the next decade
Significant opportunities over the next decade India Growth Story Rural resurgence to fuel India's Very low insurance penetration economic growth “Insurance for all by 2047” Higher uptake in health insurance post the (State Ownership by insurers, Bima Vahak, pandemic (India Health Insurance market I
Slide 85: Strategy going forward
Strategy going forward Focus on profitable Commercial lines leveraging Retail & Govt. Direct to Customer GEO to penetrate our strong balance sheet and Health Focus models with enhanced untapped smaller best in class reinsurance customer contactability markets capacity Enhanced Customer Customized pr
Slide 86: Strategic Goals
Strategic Goals Maintain a Consistently balanced & maintain GWP growth Industry Best diversified ROE of over highest NPS higher than Combined distribution & 25%* and lowest Industry Ratio (CoR) product grievance ratio portfolio in Industry General Insurance is a long-term business focussed on Size,
Slide 87: Caringly yours
Slide 88: Disclaimer
Disclaimer This presentation has been prepared by Bajaj Finserv Limited (the “Company”) solely for your information and for your use. This presentation is for information purposes only and should not be deemed to constitute or form part of any offer or invitation or inducement to sell or issue any s
Slide 89: Bajaj Allianz Life Insurance Co. Ltd. (BALIC)
BAJAJ ALLIANZ LIFE INSURANCE CO. LTD. (BALIC) Tarun Chugh – MD & CEO, Bajaj Allianz Life 10th December 2024
Slide 90: Index
01. LIFE INSURANCE INDUSTRY IN INDIA 02. TRANSFORMATION JOURNEY 03. BUILDING ON STRONG FOUNDATION a. DISTRIBUTION INDEX b. PRODUCTS c. CAPITAL & RISK MANAGEMENT d. CATALYSTS - PROCESS, TECH, ANALYTICS & PEOPLE 04. ASPIRATIONS – NEXT 5 YEARS 2
Slide 91: Macro Environment
Macro Environment Indian Life Insurance Industry Growth opportunity: Under-penetration & favorable demographics 3
Slide 92: Indian Life Insurance Industry landscape
Indian Life Insurance Industry landscape India remains vastly under-insured, both in term of penetration and density Life Insurance Penetration (% of GDP)* Life Insurance Density (USD)* 6,074 8.2% 7.4% 5.9% 4,203 5.4% 3,669 3.7% 3.4% 3.0% 2,017 1,942 2.0% 1,182 255 70 Taiwan Singapore Japan South Ko
Slide 93: Regulatory Reforms enabling growth
Regulatory Reforms enabling growth IRDAI Vision - “Insurance for All” by year 2047 • Open architecture - Enabling distribution expansion Expansion • Increase in FDI limits • Exchange of information by life insurers through IIB • Bima Trinity - ecosystem for comprehensive product offering with deep-r
Slide 94: Short-term headwinds in life insurance sector
Short-term headwinds in life insurance sector (3-6 months) Product Regulations on surrender values is a step in right direction, however some Impact of Macro short-term headwinds Delays in Product Innovation Slow down in Group Credit life Focus on making existing products complaint Lower disbursals
Slide 95: Transformation Journey
Transformation Journey Consistent, Predictable and Sustained Performance 7
Slide 96: RWRP Growth - Consistently outperforming the sector
RWRP Growth - Consistently outperforming the sector 7 Year CAGR (FY17 – FY24) RWRP 53,218 69,183 75,658 108,975 Industry 11% (in Rs. Cr) 100% 20% 46% 42% 40% 32% 90% 18% 80% 16%LIC 5% LIC 70% 14% 68% 60% Private Industry 12% 60% 58% Private 14% 50% 54% 10% BALIC's Share in 8.6% 40% 8% Total Industry
Slide 97: Transformation Journey: Robust delivery across key metrics
Transformation Journey: Robust delivery across key metrics KPIs FY 2017 Key Interventions FY 2024 • Investments across distribution channels Market share 3.5% 8.6% • Break to grow strategy in proprietary channels (RWRP) (among private players) • Deepening through identification of whitespaces (among
Slide 98: Consistent and sustainable performance over the years (1/2)
Consistent and sustainable performance over the years (1/2) 7 Yr CAGR RWRP 6,326 Rs. cr 7 Yr CAGR Renewal Premium Rs. cr 30% 22% 11,549 37% 26% 19% 20% 17% 5,712 2,467 31% 1,742 3,934 2,893 1,010 FY17 FY19 FY21 FY24 FY17 FY19 FY21 FY24 Rs. cr 7 Yr CAGR GWP 7 Yr CAGR New NOPs and Net Accretions In la
Slide 99: Consistent and sustained performance over the years (2/2)
Consistent and sustained performance over the years (2/2) VNB 1,061 AUM 109,82 43% 9 53% 361 14% 154 14% 73,77 55,093 FY17 FY19 FY21 FY24 7% 3 (55) 56,620 49,27 34,860 0 NBM 3% 15% 24,460 12% 20,480 5% 43,744 11% 7% 28,854 23,061 21,394 7,396 9,099 10,058 10,993 FY17 FY19 FY21 FY24 FY17 FY19 FY21 FY
Slide 100: Consistently outperformed LI Industry
Consistently outperformed LI Industry % indicates 5-year (FY19-FY24) CAGR growth RWRP Growth GWP Growth BALIC: 29% BALIC: 21% Total Industry (Industry: 10%) (Industry: 10%) VNB Growth VNB Market Share Private Listed BALIC: 47% Players* BALIC: 2.8% to 7.4% (Industry: 21%) *NBV CAGR and market share i
Slide 101: Company snapshot
Company snapshot Well positioned to maintain steady growth and long-term sustainable profitability 540+ 350+ Physical ~25,000 1,50,000+ Branches across Institutional Capital Employees Agents India Partners 99.2% Social ~40 lakh 410 lakh+ 37# Claim settlement Capital In-Force policies Lives covered G
Slide 102: Long Range Strategy (LRS) 2024 Theme
Long Range Strategy (LRS) 2024 Theme 14
Slide 103: Building on strong foundation
Building on strong foundation Well positioned to maintain steady growth and long-term sustainable profitability Catalysts - Capital & Risk Distribution Products Process, Tech, Management Analytics & People Diversified capabilities across key foundational blocks 15
Slide 104: Building on strong foundation: Distribution
Building on strong foundation Well positioned to maintain steady growth and long-term sustainable profitability • Multi-channel distribution • Continued investment to support future growth Distribution • Break to Grow strategy 16
Slide 105: Strong diversified distribution mix - Retail
Strong diversified distribution mix - Retail Distribution Mix (basis Pillars of distribution network RWRP) 2% 4% 8% Institutional Business (inc. Banca) 16% 2nd largest non-bank promoted Institutional 36% 41% Business 9% 7% Agency 86% 69% 3rd largest Private LI Agency 44% 40% BALIC Direct 11% 12% 2nd
Slide 106: Institutional Business (Retail) - Growing Partnerships
Institutional Business (Retail) - Growing Partnerships Till FY 19 FY 20 & 21 FY 22 & 23 FY 24 Onwards 1000+ branch banks Other Banks NBFC & Brokers Matured Partnerships New partnerships (Investments) 18 Partner started business during FY
Slide 107: IB Retail: 2nd Largest Non-Bank Promoted Institutional Business
IB Retail : 2nd Largest Non-Bank Promoted Institutional Business Rapid expansion of partnership landscape Path towards aspirations Banca 20 22 27 33 Partners • Leverage benefits of scale and Other Partners 114 117 245 310 deepening from Matured Partnerships RWRP 356 1,109 2,640 3,042 • New Partnersh
Slide 108: Agency: 3rd largest Private LI Agency
Agency: 3rd largest Private LI Agency Build up for Profitable Growth Path towards aspirations • Geographic Expansion – Aim to add IC Agents 73 K 88 K 126 K 151 K ~40 branches every year • New Verticals scale up (~35% of RWRP 1,204 1,098 2,122 2,547 Overall Agency) • Digital Agency for higher efficie
Slide 109: BALIC Direct: 2nd Largest Direct channel
BALIC Direct: 2nd Largest Direct channel – Engine for growth Combination of Offline and Online Model Path towards aspirations • Continue the Break to Grow City Presence 30 54 165 313 Strategy – Identify new verticals to focus on customer specific needs RWRP 182 261 452 737 • Geographic Expansion to
Slide 110: Group Credit Protection - Wide spectrum of solutions
Group Credit Protection – Wide spectrum of solutions Till FY 19 FY 20 & 21 FY 22 & 23 FY 24 Onwards Micro Finance Mortgage, Business, Personal Auto Education 22
Slide 111: Group Protection: Focus on Profitable Business
Group Protection : Focus on Profitable Business Group Path towards aspirations 1,450 1,597 2,371 2,315 Protection • Analytics based risk models, focusing on partner level profitability • Calibrated pricing strategy for GTL Others 1,375 1,277 business Banks • Capacity building through diversification
Slide 112: Building on a strong foundation: Products
Building on a strong foundation Well positioned to maintain steady growth and long-term sustainable profitability • Comprehensive Product Suite • Launched industry first innovative products • Focus on protection business Products 24
Slide 113: Key Product Innovations across categories
Key Product Innovations across categories Industry First ACE Guaranteed Pension Goal POS Goal Suraksha 1,629 cr 353 cr 189 cr FY24 FY21 FY19 Flexible Income Deferred Annuities POS- Point of Sale Savings Product Goal Assure Diabetic Term Plan 117 cr 1 cr FY18 FY23 ULIP with return of Term Plan Exclus
Slide 114: BALIC's transition towards balanced product mix
BALIC’s transition towards balanced product mix Product Mix % (basis RWRP) 5% 9% 24% 29% 25% 30% 1% 27% 23% 2% 6% 6% 4% 70% 60% 41% 39% FY17 FY19 FY21 FY24 ULIP Term Annuity Par NPar Savings 26 RWRP: Retail Weighted Received Premium; ULIP: Unit Linked Plan; Par: Participating; Npar: Non-Participatin
Slide 115: Continued focus on Protection business (Retail)
Continued focus on Protection business (Retail) Retail Protection Path towards aspirations 300 120 • Widen reach to New segments (Self Employed, Young, NRI, Housewives, 105 etc.) 250 100 • Enhanced customer experience - RWRP Home / Video Medicals, Value-added 200 80 Services, etc No. of Policies (in
Slide 116: Building on a strong foundation: Capital & Risk Management
Building on a strong foundation Well positioned to maintain steady growth and long-term sustainable profitability • Solvency – Growth and Risk enabler • Analytics and Data based Risk Management Capital & Risk • Creating optimal balance Management between growth and risk 28
Slide 117: Efficient Capital Utilization: Key differentiator
Efficient Capital Utilization: Key differentiator Embedded Value (EV)/RoEV Solvency - Industry highest RoEV 7.5% 10.7% 9.4% 14.5% Comfortable with Macro/Regulatory Headwinds EV 11,265 12,989 15,531 21,729 Effective utilization of Capital for growth – lowest lifetime capital infusion next only to SBI
Slide 118: Approach to Efficient Risk Management
Approach to Efficient Risk Management Pro-active Risk Management through multi layer Governance framework Economic Risk Non-Economic Risk Interest rate Risk Mortality Risk • Dynamic ALM, Cashflow / Duration Matching (<1 year • Regularly monitoring of A/E and EDC ratios, and use of duration gap acros
Slide 119: Experience in line with assumptions
Experience in line with assumptions Operating & Assumption change variance (as % of VIF) 7.9% 7.6% 2.1% 1.5% -1.4% FY17 FY19 FY21 FY23 FY24 Actual experience in-line with assumptions Improving experience with evolving life cycle resulting in low operating variances 31
Slide 120: Building on a strong foundation: Catalysts
Building on a strong foundation Well positioned to maintain steady growth and long-term sustainable profitability • Customer centricity at our core • Data and Analytics Capabilities Catalysts - • Investment in People and Process, Tech, Technology Analytics & People 32
Slide 121: Customer centricity at the core: Quality Improvement
Customer centricity at the core: Quality Improvement One of the Lowest Grievance Ratio Consistent increase in persistency across all cohorts among Large players - FY24 84% 58 73% 68% 49 49 64% 64% 51% 52% 37 37 35 44% 38% 32% 13 13M 25M 37M 49M 61M SBI Life HDFC ICICI Pru BALIC Max Life Tata AIA Bir
Slide 122: Backbone of a future ready BALIC
Backbone of a future ready BALIC Tech and Processes Analytics Innovation • Continuous process Contextual innovation • Strong team of data scientists empowering BALIC improvement with focus on delivering impactful insights ease across Value chain (Pre-Sales, • First Time Right Culture Underwriting, P
Slide 123: Elevating Excellence: Insurer Innovation Award 2023
Elevating Excellence: Insurer Innovation Award 2023 (Global Winners) GROUP LEARNING ACADEMY 35
Slide 124: Our People: Skill Development, Retention & Digital HR
Our People : Continue to invest in Skill Development, Retention & Digital HR Listening Organization • Constant ear on the ground to get Real- time employee pulse • Consistently improving Employee Satisfaction Survey 3rd time in a Row! 36
Slide 125: Aspirations - Next 5 Years
Aspirations – Next 5 Years Towards Sustainable & Profitable Growth 37
Slide 126: BALIC KPIs during Transformation Journey (BALIC v1)
BALIC KPIs during Transformation Journey (BALIC v1) v1 KPIs – BALIC v2 Market share (RWRP) Distribution Protectionmix (RWRP) Business Product mix (RWRP) Return on EV Persistency Profitability 38 RWRP: Retail Weighted Received Premium ; VNB: Value of New Business; NBM: New Business Margin, KPI: Key P
Slide 127: Aspirations - Next 5 Years (BALIC v2)
Aspirations - Next 5 Years (BALIC v2) KPIs – BALIC v2 FY 2024 Aspiration Market share 8.6% Continue to gain Market share with (RWRP) (among private players) Topline growth of ~2X the industry Protection Contribution Contribution Business 4% of RWRP ~10% of RWRP Stable product mix Product mix Traditi
Slide 128: Sustainable and Profitable growth
BALIC is committed to Sustainable and Profitable growth 40
Slide 129: Thank you
Thank you Efe Allianz @ BAIA LIFE GOALS. DONE. 41
Slide 130: Disclaimer
Disclaimer This presentation has been prepared by Bajaj Finserv Limited (the “Company”) solely for your information and for your use. This presentation is for information purposes only and should not be deemed to constitute or form part of any offer or invitation or inducement to sell or issue any s
Slide 131: Bajaj Finance Limited
BAJAJ FINANCE LIMITED Rajeev Jain Managing Director 10 December 2024
Slide 132: Welcome and session format
Good afternoon. Welcome once again. I will present for 45 minutes and take Q&A for 15 minutes. 2
Slide 133: 17-year journey
17-year journey FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 X times #Products lines 4 6 8 12 12 15 16 16 17 19 20 21 21 22 22 22 26 #Locations 116 87 79 79 82 91 184 393 590 856 1,332 1,830 2,392 2,988 3,504 3,733 4,145 36x #Loans (MM) 1.0 0.6 0.9 1.6 2.2 2.8
Slide 134: 17-year journey: great run so far
17-year journey FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 X times #Products lines 4 6 8 12 12 15 16 16 17 19 20 21 21 22 22 22 26 #Locations 116 87 79 79 82 91 184 393 590 856 1,332 1,830 2,392 2,988 3,504 3,733 4,145 36x It’s been a great run so far. In la
Slide 135: AUM ambition of 4 lakh crore by FY25
In FY22 AGM, as our AUM crossed ₹ 2 lakh crore, I presented our ambition of doubling AUM from ₹ 2 lakh crore to 4 lakh crore by FY25 with similar return ratios. I am happy to share that we are well on course to disburse over 40 MM loans, cross 100 MM franchise and 4 lakh Cr AUM in FY25 with a health
Slide 136: Where do we go from here?
Question is, where do we go from here? 6
Slide 137: LRS framework defines medium-term aspirations
We rely on our LRS framework to define our medium-term aspirations. LRS: Long-Range Strategy 7
Slide 138: LRS: 5-year rolling strategy framework
LRS is a 14-year old process in BFL. It is a 5-year rolling strategy framework with a 12-24 month execution roadmap and a bottoms- up financial plan. We analyse macro trends, industry outlook and benchmark a successful company every year as part of the process. We just concluded our LRS 2025-29 last
Slide 139: LRS framework has 6 sections
Our LRS Framework has 6 sections namely, 1. 1 Macro Trends, 2. 3 Benchmarking 2 Financial sector & Key Industries forecast, 3. company of the year, 4. 4 Megatrends, 5. 5 Basic Construct and 6. 6 Strategy. Given paucity of time, I will only cover Megatrends, Basic Construct and Strategy sections to g
Slide 140: Progress update on LRS 2024-28
Our tradition is, ‘do as we say, say as we do’. So, before I unveil LRS 2025-29, let’s quickly review our progress update on strategies and megatrends identified in LRS 2024-28. We had outlined 35 key strategies and 25 megatrends in LRS 2024-28. 10
Slide 141: Update on 35 strategies of LRS 2024-28
Update on 35 strategies of LRS 2024-28 Product (9) Horizontal (15) Platforms (7) Geography (2) Subsidiaries (2) (4) (5) (14) (1) (6) (1) (2) (2) Assured Zero Liquidity Consumer App All products in all Commercial Zero Identity 12-15% of retail Buyback on New Know everyone Drag locations Vehicle Misma
Slide 142: 28 of 35 strategies are green
Update on 35 strategies of LRS 2024-28 Product (9) Horizontal (15) Platforms (7) Geography (2) Subsidiaries (2) (4) (5) (14) (1) (6) (1) (2) (2) Assured Zero Liquidity Consumer App All products in all Commercial Zero Identity 12-15% of retail Buyback on New Know everyone Drag locations Vehicle Misma
Slide 143: Megatrends update
Megatrends update Technology (9) Products Generative AI 30 Cr+ Cost Save (8) Insurance for All Cyber Security WIP 6 Projects live Credit on UPI Digital Fraud Awareness campaigns WIP done Blockchain Plastic as form factor WIP 40MM Insurance – Live Banking – by Mar’25 Platforms Future of Device Augmen
Slide 144: Good progress on 18 Megatrends
Megatrends update Technology (9) Products Generative AI 30 Cr+ Cost Save (8) Good progress on 18 Megatrends Insurance forand All 7 are WIP Cyberwork Security in progress. 2 6 Projects live megatrends where significant efforts have Credit on UPI been Digital Fraud made in FY25 Awareness campaigns are
Slide 145: LRS 2025-29: Megatrends
Let’s now discuss LRS 2025-29. I will start with Megatrends… 15
Slide 146: What are Megatrends
Just to refresh, what are Megatrends Megatrends are powerful, transformative forces that could change the economy, business and society. They are structural shifts that are longer term in nature and generally have irreversible consequences for businesses. They can change the status quo of a business
Slide 147: Megatrends
Megatrends Technology (11) Multi Cloud Zero Trust Products (9) Green Finance Generative AI to AI Insurance for All Cyber Security Credit on UPI Digital Fraud Plastic as form factor Blockchain Future of Device Augmented reality Platforms (4) Social as a Platform Pre-owned Data privacy India Stack (3)
Slide 148: 3 new Megatrends taking the total to 28
Megatrends Technology (11) Multi Cloud Zero Trust Products (9) Green Finance Generative AI to AI Insurance for All Cyber Security 3 new Megatrends - Green Finance, Multi-cloud & Zero Trust Credit on UPI Digital Fraud taking the total to 28. Also, we think GenAI has transitioned to Plastic as form fa
Slide 149: 3 new Megatrends - definition and plan
3 new Megatrends - definition and plan Megatrends Definition LRS Plan India's green initiatives target net- Start with financing of solar and EV zero emissions by 2070, 45% products to retail and MSME 1 Green Finance emission reduction by 2045, customers in Q4 FY25. Targeting creating a ₹ 35 lakh Cr
Slide 150: BFL's Basic Construct
Let me now talk about BFL’s Basic Construct… 20
Slide 151: Basic construct organized in 8 elements
Basic construct is principally organized as 1. 1 Ambition, 2. 2 Strategy, 3. 3 Approach, 4.4 Philosophy, 5.5 Market share, 6. 6 Profit Share, 7. 7 Customer Share and 8.Technology 8 and AI-first. Let’s go through these 8 elements quickly… 21
Slide 152: BFL business construct (1/3)
BFL business construct (1/3) To be a leading financial services company and a viable 1 payments player in India. Dominate with 200 MM consumers, Ambition market share of 3-4% of total credit, 4-5% of retail credit and (Updated) 1% of payments GMV To be an omnipresent financial services company domin
Slide 153: BFL business construct (2/3)
BFL business construct (2/3) 4 To build businesses with a 10-year view anchored on prudence Philosophy and risk management to deliver ‘through the cycle’ 21–23% (No change) shareholder returns 5 Every business of the company to be amongst top 5 players in Market share India in each line of business
Slide 154: BFL business construct (3/3)
BFL business construct (3/3) 7 To grow our share of customer’s wallet by offering all products Customer and services in a frictionless manner and deliver highest Share Customer Satisfaction (CSAT) Score and Products Per Customer (No change) (PPC) Technology and AI-first as an organization culture to
Slide 155: Basic construct strengthens our moat
I have come to the end of basic construct section. It remains an important governing frame and guides our strategic decisions. Continuous sharpening of our basic construct helps us strengthen our moat as a Company… 25
Slide 156: Introducing BFL 3.0 - A FINAI Company
Time for LRS 2025-29. Introducing, BFL 3.0 – A FINAI Company. Before I talk about BFL 3.0, let me take you through BFL 1.0 and BFL 2.0 journey… 26
Slide 157: 2008-16 was BFL 1.0 and 2017-24 was BFL 2.0
2008-16 was BFL 1.0 and 2017-24 was BFL 2.0 BFL 1.0 – AUM grew from ₹ 2,478 Cr to 44,229 Cr BFL 2.0 - AUM grew from ₹ 44,229 Cr to 3,30,615 Cr 0 Became omnipresent and fully digital 5 Early adopters of 26 58.1% Early adopters of data, digitalization analytics & decision 22 22 22 0 systems 20 21 21 5
Slide 158: BFL 1.0 and BFL 2.0 highlights
2008-16 was BFL 1.0 and 2017-24 was BFL 2.0 BFL 1.0 – AUM grew from ₹ 2,478 Cr to 44,229 Cr BFL 2.0 - AUM grew from ₹ 44,229 Cr to 3,30,615 Cr 0 •1 BFL became a fully diversified non-bank (3 to 26 products) Became omnipresent •2 Being a technology first company, we were early adopters of and fully d
Slide 159: From BFL 1.0 to BFL 3.0
Our journey from BFL 1.0 to BFL 2.0 has been fascinating. During this period, we have been through mostly good times & some very difficult times like Demonetization & Covid. However, what I am most excited about is the next phase of BFL which is ‘BFL 3.0 - A FINAI Company’. I have broken down BFL 3.
Slide 160: BFL 3.0
BFL 3.0 BFL 3.0 will be amongst the most sustainable and profitable companies in India and a pre-eminent choice for its 200 MM customer franchise for all their financial services needs. BFL aims to be the lowest cost operating model in financial services by accelerating business transformation and l
Slide 161: A FINAI Company
A FINAI Company BFL will be A FINAI company with AI enabled technology architecture, which integrates AI across all its processes to significantly improve customer engagement, grow revenue, reduce Opex, reduce credit costs, enhance productivity and strengthen controllership. 31
Slide 162: In summary, BFL 3.0 - A FINAI Company
In summary, BFL 3.0 - A FINAI Company BFL 3.0 - A FINAI Company will be a pre-eminent choice which meets all financial services needs of its 200 MM customers. Its AI enabled technology architecture that integrates AI across all its processes to deliver significant operating leverage and create a vir
Slide 163: Strategic framework of BFL 3.0
Unveiling strategic framework of ‘BFL 3.0 – A FINAI Company’ 33
Slide 164: Strategies - BFL 3.0 - A FINAI Company
Strategies – BFL 3.0 – A FINAI Company Acquire Customers (1) Next 100 MM customers – Strategic partnerships, organic acquisition and Bajaj Prime Next Frontier of Growth (1) MSME – The next big growth engine Build Market Leadership – Amongst top 3 (4) PL - 50K to 50 lacs Gold Loan MFI Two Wheeler FIN
Slide 165: Strategies - BFL 3.0 - A FINAI Company
Strategies – BFL 3.0 – A FINAI Company AI for Revenue (2) Conversational AI for sell – 3X conversion rate Conversational AI for Cross sell - 3X conversion rate AI to Reduce cost (6) FTE productivity - 1.5X Field, 2X HO PSF productivity – 15% increase Reduce sales Contact center Reduce DMS contact ce
Slide 166: Detailed implementation plan to become a FINAI Company
A detailed implementation plan has been created across all businesses and functions to become a FINAI Company. We are extremely excited about the AI era and the business transformation opportunity that it offers. 36
Slide 167: How will we look by FY29
As we deliver all this, let’s see how will we look by FY29… 37
Slide 168: LRS Outcomes
LRS Outcomes Sr No Basic Construct 6M FY25 LRS FY28 LRS FY29 1 Customer Franchise (MM) 92.1 130-140 190-210 2 Cross-sell Franchise (MM) 57.7 80-90 115-125 3 India payments GMV 0.27% 1.25-1.5% 0.4-0.5% 4 Share of total credit 2.11% 3-3.25% 3.2-3.5% 5 Share of retail credit 2.67% 3.8-4.0% 3.8-4.2% 6 L
Slide 169: Thank you
Thank you. Look forward to your continued support. 39
Slide 170: Disclaimer
Disclaimer This presentation has been prepared by Bajaj Finserv Limited (the “Company”) solely for your information and for your use. This presentation is for information purposes only and should not be deemed to constitute or form part of any offer or invitation or inducement to sell or issue any s