Aditya Birla Capital Ltd. · NSE:ABCAPITAL
Aditya Birla Capital — Investor Day (February 2024)
158 slides from Aditya Birla Capital's investor day presentation, Feb 8, 2024
Slide 1: Filing letter: Schedule of Analyst/Institutional Investor Meeting
Ref: No. ABCL/SD/MUM/2023-24/FEBRUARY/18 8 February 2024 BSE Limited The National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Dalal Street, Plot. C/1, G-Block, Mumbai 400 001 Bandra-Kurla Complex, Bandra (East), Scrip Code: 540691 Mumbai 400 051 Scrip ID: ABCAPI
Slide 2: Filing letter: list of attendees (continued)
35 Kotak Securities 36 M&G 37 Macquarie 38 Magma 39 Mahindra Mutual Fund 40 Morgan Stanley 41 Motilal Oswal 42 Nippon India MF 43 Oxbow 44 PGIM MF 45 Premji Invest 46 Reliance Nippon Life Insurance 47 SBI Mutual Fund 48 SBI Pension Fund 49 Sohum Asset Managers 50 Star union Dai-ichi Life Insurance 5
Slide 3: Analyst Day
ADITYABIRLA CAPITAL Analyst Day 8" Feb 2024 01 Aditya Birla Capital Ltd.
Slide 4: Strategy & Approach
ADITYABIRLA CAPITAL Strategy & Approach Aditya Birla Capital Ltd.
Slide 5: Our Key Strengths
Our Key Strengths Aditya Birla Group Strong Brand Seamless Large growth name & access to opportunities Parentage Capital within the ABC resonating Trust and extended ABG ecosystem 03 Aditya Birla Capital Ltd.
Slide 6: ONE ABC ONE P&L
OUR APPROACH: Drive Quality and Profitable Growth... One Customer ONE ABC One Experience ONE P&L One Team …By Leveraging Data, Digital and Technology 04 Aditya Birla Capital Ltd.
Slide 7: ONE CUSTOMER: Build Deep Understanding of Customer Needs
ONE CUSTOMER: Build Deep Understanding of Customer Needs… INVESTMENTS ~35 million LOANS PAYMENTS Customers 360o Solutions Customer life stage Intuitive journeys (Early career, Seamless (convenience of progressive, full nester/ delivery usage) empty nester) One Customer Customer preferences Ecosystem
Slide 8: ONE EXPERIENCE: Omni Channel Architecture
ONE EXPERIENCE: Omni Channel Architecture... ABCD-D2C platform Robust & agile for customers Udyog Plus-B2B digital platforms platform for MSMEs B2D platform for channel partners One ABC 762 co-located branches Dedicated customer service locations across 218 locations managers for cross sell One Expe
Slide 9: ONE TEAM: Enriching Lives. Winning as ONE
ONE TEAM: Enriching Lives. Winning as ONE Own Customer Jointly Drive Cross-sell & ensure across Businesses Seamless Delivery Work Together to Uphold FAIR (Focused, Deliver Complete & Agile, Innovative and Result Comprehensive Solutions Oriented) Values Senior Team Incentives ONE TEAM Inculcate ‘Winn
Slide 10: Strong growth momentum during 9M FY24
Strong growth momentum during 9M FY24 Total lending1 portfolio of ` 1,15,139 Cr (↑ 34% y-o-y & ↑ 6% q-o-q) Total AUM3 of ` 4,10,444 Cr (↑ 13% y-o-y & ↑ 2% q-o-q) Gross premium4 of ` 13,500 Cr (↑ 13% y-o-y) Consolidated Revenue2 at ` 26,971 Cr (↑ 29% y-o-y) Consolidated PBT at ` 2,970 Cr (↑ 44% y-o-y
Slide 11: Strategic Priorities
Strategic Priorities Simplification of financial needs Prudent risk Data and analytics management with focus centric organization on return of capital culture Understanding the Customer Understanding the Customer Omnichannel based Scaling up distribution digital platforms Continue growth momentum ac
Slide 12: Digital platforms, Analytics & Technology
Digital platforms, Analytics & Technology 10
Slide 13: Customer Insights and Emerging Trends Shaping BFSI
Customer Insights and Emerging Trends Shaping BFSI Customer Market Trends Emerging Technology Insights Shaping BFSI Trends 11 References : Gartner | Forrester | BCG | McKinsey | KPMG | Accenture
Slide 14: Reimagining Customer Experience
Reimagining Customer Experience 12
Slide 15: Reimagining Customer Experience
Our Building Blocks Launching Customer Building Internal Reimagining Facing Platforms Platforms Customer Experience Powered by Accelerating Innovation Data & Analytics Setting up InFiniTe & Leveraging DPI * 13 *Digital Public Infrastructure Aditya Birla Capital Ltd.
Slide 16: Our Building Block: Customer Facing Platforms
Our Building Block: Customer Facing Platforms INTEROPERABLE TO DRIVE SYNERGY 14 Aditya Birla Capital Ltd.
Slide 17: Our Building Block: Internal Platforms
Our Building Block: Internal Platforms Next Gen Payment Lounge- 99.6% ABC API Gateway Transaction Success Internal Platforms Voice Tech Early adoption of 250+ Voice Bots Generative AI Launched in FY24 Scaled up in FY24 15 Aditya Birla Capital Ltd.
Slide 18: Our Building Block: Accelerating Innovation
Our Building Block: Accelerating Innovation Leverage DPI * Launched InFiniTe - Fintech Engagement Platform 1 3 Presenceless Paperless Cashless 2 Matured : Digital KYC, eSign, eContracts, eMandate, Penny drop, UPI Innovate Invest Consent Based Incubate Early adoption : Account Aggregator FinTech Enga
Slide 19: Our Building Block: Data & Analytics
Our Building Block: Data & Analytics Data Platforms & Data Engineering Science Data platforms like GCP, 106 → 400+ ▪ Databricks implemented Analytical Analytical ▪ Data dictionary, catalog, data lineage models models by FY25 (Q3FY24) being strengthened Decision Model Maturity & Data Science Quality
Slide 20: Reimagining Customer Experience
Reimagining Customer Experience Journey DPI & Tech Leverage ABFL ABHFL ABSLI ABHI ABLAMC • Digital KYC & Video PD Application & • UI/UX Design Verification • Cobrowsing • Account Aggregator Underwriting • Computer Vision • AI/ML & GenAi - Payment • eSign/ eContract and Issuance / • eNach/eMandate Di
Slide 21: ABCD - D2C platform
ADITYABIRLA CAPITAL ABCD - D2C platform Aditya Birla Capital Ltd.
Slide 22: Our D2C Foray
Our D2C Foray Customer Insights Our Strategic Advantages ABG parentage Trustworthy financial built on 150+ Large growth service provider years of trust opportunities within the ABC and ABG Convenience at par In-house ecosystem with e-commerce manufacturing to offer a wide range Width of product of f
Slide 23: Our Delivery Model
ADITYA BIRLA CAPITAL Our Delivery Model 21 Aditya Birla Capital Ltd.
Slide 24: Our Delivery Model
Our Delivery Model Branch Virtual Engagement App & Website Call centres with multi-product specialists Pan-India sales hierarchy Call centres with multi-product specialists Customers One Customer | One Experience | One Team Loans Investments Insurance Payments My Track^ 22 ^My Track: Value Added Ser
Slide 25: Our Journey so far
ADITYA BIRLA CAPITAL Our Journey so far 23 Aditya Birla Capital Ltd.
Slide 26: Our Journey so far
Our Journey so far • Launch of ONE ABC • Board approval for • Incorporation of • Visual designs branches ABCDL ABCDL prepared based on • MoU with NPCI • Customer research and customer insights insight gathering Jan’2 Feb’2 Mar’2 Apr’2 3 3 3 3 • App prototype launched • Application for PPI • Received
Slide 27: Our Value Proposition
ADITYA BIRLA CAPITAL Our Value Proposition 25 Aditya Birla Capital Ltd.
Slide 28: Everything Finance
Everything Finance STOCKS & TRADING HEALTH TRACK “With so many products & services at one CREDIT CARDS Cards, PL, BL, HL – place, this is truly what we call a one-stop SPEND TRACK RECHARGES & ➤ Instant digital sanction shop BILL PAYMENTS ” ABC VOICE-BASED PAYMENTS PERSONAL LOANS HOME LOANS PORTFOLIO
Slide 29: Simplicity
Simplicity Ergonomic “ The slider is intuitive, shows everything in a single view making navigation very simple. Design ➤ First of its kind navigation This is very unique. Simple Easy Navigation ➤ Clutter-free layout ” & Intuitive Haptic UI / UX Feedback ➤ ‘De-jargonizing’ finance “ The user interfa
Slide 30: Track Financial Health
Track Financial Health Credit Score “ The DHA feature allows me to have a basic health check-up from the convenience of my Credit Score- personalized ➤ tips & score simulator home Spend & Budget Analyzer ➤ Unified view of both assets and liabilities ” My Portfolio Track Consolidator Digital Health ➤
Slide 31: Your Choice, We Enable
Your Choice, We Enable 19 Financial “ The learning feature is a very useful feature Calculators for beginners like me. It helps me take ➤ Informed decision making informed decisions regarding my investments Simulators ➤ Learning made simple and rewarding ” Fit for Quizzes You Learning Modules ➤ Smar
Slide 32: Support at Every Step
Support at Every Step “ If I run into a problem, the app itself tells me AI powered how to resolve it. I don’t have to contact ➤ Multiple modes of chatbots & interaction customer support for every minor issue Support search options ➤ ‘SimpliFi’ – Gen AI powered search ” Real-time at Every co-browsin
Slide 33: Building Blocks
ADITYA BIRLA CAPITAL Building Blocks 31 Aditya Birla Capital Ltd.
Slide 34: Our People, Our Strength
Our People, Our Strength Talented and seasoned team with diverse experience from Banks, Fintechs, NBFCs, Payments and Consulting 30% ~32 years Women Workforce Average team age Customer Agile Centricity Enthusiasm Creativity Proactiveness Execution 32
Slide 35: User Centered Design
User Centered Design 600+ users engaged for primary research across products, journeys, and app engagement User Interviews AI Backed testing Qualitative Insights ~135 Customers ~200 Customers ~280 Customers Surveys and interviews to understand Eye movement and click tracking to FGDs, interviews and
Slide 36: Target Segment & Brand
Target Segment & Brand Our TG: The Striving & Bull’s eye cohort: Young Aspirers Thriving Middle Class (First income to first kid) Fastest growing segment, expected Motivated and tech-savvy on a path of to be largest by 2030 (~72 Cr) constant growth and progress Finalization of CVP with FGD 14 Brand
Slide 37: MarTech Stack
MarTech Stack App analytics and attribution Web and app analytics Product analytics platform Tracking app installs and attribution to Analyze traffic on web and app for fraud Track customer journey on app and drop sourcing channels detection, create insights and actions points for behaviour-based se
Slide 38: Technology as a Core Differentiator
Technology as a Core Differentiator Key differentiators Benefits derived Microapps powered Modular App 1 Modular, cloud native, true omnichannel experience Increased flexibility, faster updates Low code no code platform 2 Agile delivered, iteratively deployed Faster development, instant deployment o
Slide 39: Data & Analytics
Data & Analytics Customer 360 Next Best Offer Personalization Creating customer Utilizing real-time AI led Build best in-class personas using diverse tools to maximize personalization engine for customer attributes Customer Lifetime Value targeted communications 1000+ Attributes 50+ AI models 100+ M
Slide 40: Road Ahead: FY25
ADITYA BIRLA CAPITAL Road Ahead: FY25 38 Aditya Birla Capital Ltd.
Slide 41: Road Ahead: FY25
Road Ahead: FY25 Leverage Empowering our Customer launch interoperable tech employees as in Mar’24 stack for assisted multi-product journeys specialists Innovation led Access ABG culture & Ecosystem via enhancing digital unified approach capabilities 39
Slide 42: Payments
ADITYABIRLA CAPITAL Payments 40 Aditya Birla Capital Ltd.
Slide 43: Payments Strengthens the One ABC Customer Proposition
Payments Strengthens the One ABC Customer Proposition Payments makes us a ‘full-stack’ FS company Payments enables Line of Business Presence of ABC Opportunity to increase interactions with customers Mutual Funds Avg. ABC As Is Banking App Paytech 1 monthly Life Insurance mobile app logins* 1x 7x 40
Slide 44: Payment Lounge
Payment Lounge Launched Current Payment Aggregation Landscape With ABCD Payment Lounge Jun’23 Customer Form Payment Customer Touch Point Touch Point Factor Modes Card Payment Via PG: OUR Aggregato Website SOLUTION r In-store In-store Online Doorstep Net Banking Via Bank Weblink Form Factor ABC Merch
Slide 45: Payment Lounge: Off to a Robust Start
Payment Lounge: Off to a Robust Start Payments Lounge Checkout Page ~ INR 500+ Cr GMV Zero Platform downtime monthly run rate from launch to date Platform performance - First 6 months 99.58% Technical 100% On-time Success rate on Settlement track transactions record GTM ABC Businesses ABG Ecosystems
Slide 46: UPI & Bill Payments: Customer Value Proposition
UPI & Bill Payments: Customer Value Proposition New New @abcdicici TECHNOLOGY • TPAP on API model PRODUCT • UPI international 100+ • Smart routing • Credit card on UPI Payments Services • UPI 123 pay Value FEATURES UI / UX • Z-axis motion design Proposition • Pay from multi-account • Multi-mode coll
Slide 47: Comprehensive Payment Suite
Comprehensive Payment Suite ABCD Home Screen Payments Dashboard Simple Secure Seamless Payments Stack available as Expands to Full Stack Payment part of ABCD App dashboard 45 Aditya Birla Capital Ltd.
Slide 48: Our Differentiators: Multi-Account Payment
Our Differentiators: Multi-Account Payment 1 2 3 INDUSTRY FIRST Make single payment by debiting multiple bank accounts. Unique functionality to help consumer when falling short of funds in one account. Choose ‘Multiple Select accounts from Set amount and Account’ option for high which funds need to
Slide 49: Our Differentiators: Multi-Mode Receipt
Our Differentiators: Multi-Mode Receipt A B C INDUSTRY FIRST Choose from multiple methods to receive money QR Notification Link Generate value based Send a collect Send a collect QR and share to collect request notification request Link 47 Aditya Birla Capital Ltd.
Slide 50: Our Differentiators: Pre-verified Bank Transfer
Our Differentiators: Pre-verified Bank Transfer INDUSTRY FIRST 1 2 3 Unique functionality introduced in consumer’s bank transfer journey. Auto fetch beneficiary bank IFSC and name. Bank transfers more convenient & simpler now. Select bank from list of Enter Auto-fetch IFSC bank accounts account numb
Slide 51: Our Differentiators: UPI International
Our Differentiators: UPI International QUICK MOVER 1 2 3 4 Now use UPI to pay when you travel abroad* Benefit from transparency in forex conversion and markup Enjoy secure international Enable international Scan Verify currency Complete transactions transactions in international QR conversion and ma
Slide 52: Our Differentiators: RuPay on UPI
Our Differentiators: RuPay on UPI 1 2 3 QUICK MOVER Link your Rupay credit card to your UPI handle. Use your credit line to pay to merchants & billers. Link RuPay credit card Select RuPay card Manage Linked Card – to pay Check balance, Reset Pin 50 Aditya Birla Capital Ltd.
Slide 53: Our Roadmap: Payments will Continue to Evolve
Our Roadmap: Payments will Continue to Evolve Beyond FY’25 Live in CUG FY’25 Transit Live (FasTag, NCMC) Forex Now! Payment Offerings FY’25 PPI Wallet February ’24 Merchant Acquiring Pay by UPI QR & handle June’23 Launch of UPI and BBPS Launch of ABCD Payment Lounge Issuer Service Provider Acquirer
Slide 54: Udyog Plus - MSME platform
ADITYABIRLA CAPITAL Udyog Plus - MSME platform
Slide 55: Understanding MSME Ecosystem
Understanding MSME Ecosystem MSME: Large & Growing Ecosystem Gateway to Multiple Opportunities Huge Unmet Demand 33% Share of MSME GDP % of overall GDP (FY22) SUPPLIER Only 14% MSMEs in India have access to credit compared to 30%+ in developed nations 16.5% Share of MSME credit in total Bank Credit
Slide 56: Udyog Plus: Addressing 360o needs of MSMEs
Udyog Plus: Addressing 360o needs of MSMEs DIGITAL PLATFORMS ABG ECOSYSTEM Business Management Existing to Solutions ABFL Ecosystem Customers Building App INVEST Blocks Existing to TRANSACTIONS ABCL Data analytics Solutions Knowledge Growth Solutions Web INSURE / AI Existing to Lending ABG Digital A
Slide 57: Complete Suite of Financial Solutions
Complete Suite of Financial Solutions BUSINESS SUPPLY CHAIN INSURANCE & LENDING FINANCING INVESTMENTS Paperless unsecured Channel & Vendor Embedded Business Loan financing Insurance solutions journey up to Rs 10L with loans Instant loan Pre-approved Investment up to Rs. 2L without limits Solutions i
Slide 58: Illustrative Journey for Business Loans
Illustrative Journey for Business Loans DIY Journey STEP 1 Discovery of the Udyog Plus End to End platform by the users Digital Process Digital Application STEP 2 Business rule engine is run to generate Loan sanction in instant sanction up to Rs 2 lacs < 2 mins Paperless Documentation Paperless Loan
Slide 59: Illustrative Journey for Supply Chain Finance
Illustrative Journey for Supply Chain Finance Dealer Onboarding STEP 1 End to End Dealer will receive email to start Digital Process onboarding process Pre-approved Digital Application STEP 2 Offers Pre-approved offer Details in pre-filled application form Instant dealer onboarding KYC & Agreement S
Slide 60: Customer Testimonial
Customer Testimonial Profile Details Customer Name : Maheshbhai Vadadoriya Business Name : Shree Satyay Industry : Cloth Manufacturing & Trading Business Vintage : More than 3 years Problem Statement Was finding it difficult to expand business due unavailability of funds required for procuring raw m
Slide 61: Value Proposition: Solutions to Manage Business
Value Proposition: Solutions to Manage Business CURRENT ACCOUNT ACCOUNT SOFTWARE HRMS AND PAYROLL Current Account with 25% off on subscription fee for 30 days free trial plus YES BANK ZOHO for managing your account pay for 6 months & use for 12 and business operations months with Paybooks TAX FILING
Slide 62: Value Proposition: Solutions to Grow Business
Value Proposition: Solutions to Grow Business BUSINESS ONLINE KNOWLEDGE NETWORKING DISCOVERY SERIES Business Networking Online discovery of Specialized knowledge solution to connect with Digital Stores using ONDC content hub Buyers and Sellers registration Customized basic Online Digital Store creat
Slide 63: Acquisition Funnels - Direct & via Ecosystems
Acquisition Funnels - Direct & via Ecosystems Direct to MSMEs ABG Ecosystem External Ecosystems Paid Marketing Pre-approved limits to channel B2B & B2C Campaigns partners/ distributors Ecommerce Social Media B2B E-commerce platform Campaigns Merchant POS partnership Discussion Channel Finance for re
Slide 64: Way Forward
Way Forward Widening of addressable market Diverse Customised programs for niche & emerging sectors New Program Higher ticket size Customer Needs business loans Secured Loans New market segment Capex Funding New Product 360º X-sell Addresing Txn Needs Anchorless SCF Insurance (HI, LI & GI)* B2B paym
Slide 65: Business Highlights
Business Highlights ▪ 5 lac+ MSME Registrations 6 Months ▪ ~Rs 225Cr + new customer disbursements Output ▪ 94% insurance attachment penetration ▪ Average CIBIL score is at 746 Focus on ▪ Granular customer base with avg ticket Book Quality size of ~Rs 5 lakhs in business loans & Rs 14 lakhs in Supply
Slide 66: Digital, Analytics & Technology
Digital, Analytics & Technology 64
Slide 67: Purpose of Digital & Analytics across ABC
Purpose of Digital & Analytics across ABC Build Common Drive Culture of Innovation Internal Platforms Manage fintech engagement and Ensure uniform customer ensure faster adoption of experience and scalability emerging technologies Accelerate Best Practice Integration Implement common frameworks and
Slide 68: Analytics: Stages of Maturity
Analytics: 5 Stages of Maturity Low Maturity High Self-learning & adapting How to make it happen? What will Cognitive (Adaptive happen? Why did it Prescriptive Intelligence) (Amplified happen? What Predictive Intelligence) Self-learning Insight Integrations happened? (Foresight) Strategic Action Dia
Slide 69: Pillars of ABC Analytics
Pillars of ABC Analytics Data Platforms and Engineering Data Governance Efficient storage, management, Managing data assets with strict adherence processing and analysis of data to quality and data protection laws Investments in data lakes and data Strengthening data quality standards and warehouses
Slide 70: Analytics: Early Wins and Way Forward
Analytics: Early Wins and Way Forward Data Platforms Data Science Decision Science & Engineering Early Wins Early Wins Early Wins • Implemented data platforms like AWS, • 106 analytical models currently in use • Organization-wide adoption of GCP, Databricks across customer lifecycle and automated da
Slide 71: Analytics: Early Wins and Way Forward
Analytics: Early Wins and Way Forward Data Model Maturity & Resourcing Governance DQ Assessment & Talent Early Wins What is this Early Wins • Culture of secure and responsible • Model Maturity Assessment • Analytics headcount increased by data sharing while prioritising the evaluates a model’s abili
Slide 72: Impact of Analytics
Impact of Analytics ACQUISITION RISK RETENTION & WIN-BACK MANAGEMENT PL Disbursement Collection Efficiency LI Customer Renewal LI Customer Win-back FY22 FY23 FY24 FY22 FY23 FY24 FY22 FY23 FY24 FY22 FY23 FY24 X 2.3X 4.6X X 1.3X 1.4X X 1.3X 1.5X X 1.1X 1.7X LI PASA HI Fraud Prevention HI Customer Rene
Slide 73: Pillars of ABC Digital
Pillars of ABC Digital Journey Simplification Implement common frameworks for optimising assisted Customer and Distributor journeys Customer Integration Stack Experience Develop a Unified API Platform to accelerate integrations and drive innovation Customer Fintech Engagement Engage with Fintechs to
Slide 74: Digital: Common Internal Platforms
Digital: Common Internal Platforms ABC API Gateway Generative AI Common Utilities across ABC NEW AUDIT & COMPLIANCE ASSIST ABHFL ABC API Gateway Log in Create audit checklist & respond to queries ABFL ABC API Dev Portal ABSLAMC Discovers SERVICE ASSIST MARKETING ASSIST APIs ABHI Assist agents in Cre
Slide 75: Digital: Inside-Out and Outside-In Innovation
Digital: Inside-Out and Outside-In Innovation Inside-Out Outside - In 10,000 + Fintech Network 250 + Voice Bots across customer onboarding, service and through Accelerators and ABG Innovation Fund retention journeys for Customer Convenience & Scalability Inside out - Mentorship - Identify problem st
Slide 76: Digital Public Infrastructure
Digital Public Infrastructure for Digital Customer Journeys & Acquiring Customers at Scale Presence Less Layer Consent-based Layer Open Networks (Openness & Interoperability) Account Aggregator (AA) ONDC CKYC | Digi locker KYC | eKYC | VCIP Phase 1 integration: Paperless Layer AA Themes: • Personal
Slide 77: Digital Index for Customer Journey Simplification & Efficiency
Digital Index for Customer Journey Simplification & Efficiency Digital Index Framework Digital Capability Digital Adoption Customer Experience Ability to digitally perform the process % adoption of digital capability User Experience (# prepopulated fields , step (Contactless, Paperless, Cashless) fo
Slide 78: PILANI: Technology Framework
PILANI: 1 Technology Framework PILANI Platform Interact (Digital) Living Analytics (Data) Newtech Infrastructure ABC API ABCD Super App, Perpetual Data Technology Trends Infrastructure Platform, B2C, Portals, Chatbots, Architecture Governance and Fintech Modernisation B2B, B2D Voice Tech Tools Engag
Slide 79: Enterprise Architecture to Drive Technology Transformation
Enterprise Architecture to Drive Technology Transformation Connect the current Enterprise Architecture (EA) digitally across ecosystems Strategy Digital Enterprise Outcomes Architecture Practice Business • Architecture & solution focus • Single view of Enterprise wise Architecture across ABC • Reusa
Slide 80: CRM Transformation with Salesforce
CRM Transformation with Salesforce Single unified architecture, governance and delivery Differentiators from • Centralised Governance existing Service CRM • Strong incident management • Onboarding LOBs on new model Stages SLA • Strong SLAs Process Agility Case Path Team Assignments Change Management
Slide 81: Aditya Birla Finance
ADITYABIRLA CAPITAL Aditya Birla Finance Aditya Birla Capital Ltd.
Slide 82: Strong Growth Momentum
Strong Growth Momentum Growth Leadership Quality & Profit Delivery Building Phygital Acquisition Engines o Amongst Fastest Growing NBFC’s o NIM 68 bps to 6.90% in 2 years o Branch footprint 3X in 2 years to 400 o AUM ~2X in 2 years o GS3 ↓~130 bps in 2 years o Launched Udyog Plus – B2B MSME o
Slide 83: Industry Leading Growth in Chosen Segments
Industry Leading Growth in Chosen Segments Loans to self employed customers Loans to salaried individuals Industry INR 27,28,800 Cr Industry INR 10,31,400 Cr NBFCs 7,23,100 NBFCs 2,17,600 NBFC Share 26% NBFC Share 21% ABFL 49,697 ABFL 16,914 ABFL Market Share 7% ABFL Market Share 8% YoY AUM Growth (
Slide 84: Finance Simplified
ADITYA BIRLA CAPITAL Finance Simplified 82 Aditya Birla Capital Ltd.
Slide 85: "Finance Simplified" – Key Foundation Pillars
“Finance Simplified” – Key Foundation Pillars Customer Technology Analytics Experience Infrastructure Customer Delight Deep-mining Data Building Scalable Platforms Product Platforms & Underwriting Innovations Journeys Superior Portfolio Enterprise TATs Management Apps Value Added Campaign Integratio
Slide 86: Customer Experience
Customer Experience Customer Experience 84
Slide 87: Customer Feedback Drives Superior Outcomes
Customer Feedback Drives Superior Outcomes Customer Insights ABFL Solutions Customer Impact Superior journeys integrated with Instant Decisioning– ‘Lender of Superior TATs for MSMEs DPIs to deliver seamless user Choice’ for customers and channel experience partners Extensive presence catering to div
Slide 88: Services Suite made Digitally Accessible on Fingertips
Services Suite made Digitally Accessible on Fingertips Service Coverage Significant adoption in 9 months of Launch 5X Retail Customer 10X Corporate Customer Account reports Tickets serviced generated though app through STP automations Co-branded Cards MSME Customers 10X 2.4X Leads received MRR for a
Slide 89: Analytics
ADITYA BIRLA CAPITAL Analytics 87 Aditya Birla Capital Ltd.
Slide 90: Analytics Powered Customer Lifecycle Journeys
Analytics Powered Customer Lifecycle Journeys Onboarding Underwriting Portfolio Management Sourcing Underwriting Portfolio Management • Credit Engines • Verification Algorithms • Portfolio Monitoring • Application Scorecards • KYC suite • Portfolio Retention • Third party applications • Cross Sell a
Slide 91: Encrypted Scorecards to Scale Through Ecosystems
Encrypted Scorecards to Scale Through Ecosystems Features Input Feed from Fully encrypted, dockerized, and scalable utility Partner Journey Eligibility assessment of customers as per ABFL Policy Corresponding risk-based pricing Python + Docker based Encrypted utility Dockerized Utility Customer owne
Slide 92: Technology Infrastructure
Technology Infrastructure 90
Slide 93: Omni-Channel Platform Powers Large Ecosystems
Omni-Channel Platform Powers Large Ecosystems Borrower Apps CUSTOMER MERCHANT SME ONLINE ECO-SYSTEM Loan Service Provider / Channel Partner Digital Public Infrastructures ABFL PLATFORM Merchant Over Top-Up B2B Co- Transaction NACH-Set-up BNPL Cash Draft Product Loans Lending EMI EMI PRODUCT MIX Adva
Slide 94: Unified API Hub Provides Speed to Scale
Unified API Hub Provides Speed to Scale 430+ API Integrations 2-4 weeks 99.5% Journey integration TAT API Success Rate 27+ 0.335 Seconds Avg. API Journeys response time Ability to seamlessly integrate and accommodate growing platform demands 92
Slide 95: Journeys Built on Resilient & Scalable Tech Infra
Journeys Built on Resilient & Scalable Tech Infra MODULAR DESIGN OF OUR TECH INFRASTRUCTURE Credit Customized Internal Ops Product KYC Credit Eligibility IMPS / NACH Assessment / AML Templates Processing Processors oKYC Customer creation PEP TnC Penny Drop Doc Upload (KYC, Loan Management TnC, Sanct
Slide 96: Way Forward
ADITYA BIRLA CAPITAL Way Forward 94 Aditya Birla Capital Ltd.
Slide 97: Way forward: FY23-26
Way forward : FY23-26 DOUBLING THE AUM WITH CONTINUED ROA EXPANSION ENABLERS Scale up Udyog Plus Share of secured Branch presence with STP and N-STP – B2B Ecosystem loan book (Focus on expanded geo footprint sourcing through digital MSME) journeys Newly launched Share of X-sell & Up Sh
Slide 98: Aditya Birla Housing Finance
Aditya Birla Housing Finance 96
Slide 99: ABHFL Playbook
ABHFL Playbook Full Stack Leveraging ABG Our Pillars Ecosystem Mortgage Player s ABG Legacy Digital • ₹ 16.5k Cr AUM Platforms Across Customer LifeCycle • Cost Of Borrowing Advantage (Q3FY24) • Trust of Partners & Customers Distribution • Presence Across Customer segments • AAA Credit Rating^ - Prim
Slide 100: What Do We Stand For?
What Do We Stand For ? To be Most Preferred Choice How? By creating of the Customer Hassle-free & Predictable Customer Journeys 98 Aditya Birla Capital Ltd.
Slide 101: ABHFL Value Proposition Glide Path
ABHFL Value Proposition Glide Path Sectoral Customer Insights ABHFL Evolving Playbook Capabilities No control - Unsure when Anxiety & Process and how much Stress is a black box will I get? Hassle Free & Predictable Process is No one to Relationship is mentally & guide you not of equals physically ta
Slide 102: Digital Platforms Across Customer Life-Cycle Stages
Digital Platforms Across Customer Life-Cycle Stages D F S C DEMAND FULFILMENT SERVICE COLLECTION 100 Aditya Birla Capital Ltd.
Slide 103: Stage Demand: Platform – ABHFL Sales CRM
Stage Demand : Platform – ABHFL Sales CRM D DEMAND Platform & Features Early Gains What’s Next? Distributor Onboarding ABHFL Sales CRM • Demand Funnel Planning 27% ↑ • Route Optimisation Employee Productivity • ABHFL Maptions • Channel Engagement (active as on Q3FY24) • Lead Scoring Sales CRM • Camp
Slide 104: Stage Fulfilment: Platform - ABHFL Finverse
Stage Fulfilment : Platform - ABHFL Finverse F FULFILMENT Retail Platform & Features Early Gains What’s Next? ABHFL Finverse • Scorecard Based Decisioning • Single Sign on from Prospecting to • Re-imagined Customer Disbursement Journey • E-Commerce like “TrackMyLoan” Retail Disb. Growth • Automated
Slide 105: Stage Service: Platform – ABHFL Finserve
Stage Service : Platform – ABHFL Finserve S SERVICE Document Management System(DMS) Decongestion Early Gains What’s Next? • Servicing through Digital Channels 59%↑ • Service Guarantee Service CRM • FAQs on WhatsApp Chatbot Service Guarantee In Hours • Omni Channel Experience • Foreclosure SLA 20%↑ G
Slide 106: Stage Collections: Platform – ABHFL FinCollect
Stage Collections : Platform – ABHFL FinCollect C COLLECTION Dashboard & Notifications Platform & Features Early Gains What’s Next? Legal Management Inhouse Cloud Telephony ABHFL FinCollect • End-to-end Unified Digital 284bps New Modules in FinCollect Bounce Reduction • Field Allocation Settlement P
Slide 107: BluePrint of Digital Platforms Across Customer Life-Cycle
BluePrint of Digital Platforms Across Customer Life-Cycle DEMAND FULFILMENT SERVICE COLLECTION India Stack Integrated & Bureau Analytics e - Sign / e - Stamp Dashboard & Notifications Legal Document Management Management System (DMS) Inhouse Cloud Telephony & Integrated Settlement Process Distributo
Slide 108: Construction Finance Platform: FinCF
Construction Finance Platform : FinCF Platform & Features Early Gains What’s Next? • End-to-end Monitoring at • CF Rating Model • CF Loan Onboarding Builder & Project Level System (LOS) • Early Warning Signal (EWS) Wholesale Disb. Growth • Real-time Inventory Analysis • Inbuilt Event Triggers, Appro
Slide 109: Data and Analytics Roadmap
Data and Analytics Roadmap Models Across Customer Life-Cycle DEMAND FULFILMENT SERVICE COLLECTION Bureau Based Application Sanction Undisbursed Foreclosure Prediction Pre-Delinquency Model for Scorecard Prioritisation Model Model for Active Retention Bounce Prediction FOS Profiling Model for Lost Op
Slide 110: 3 Year ABHFL Vision
3 Year ABHFL Vision Doubling To Be Most AUM Preferred Choice Of the Customer 108 Aditya Birla Capital Ltd.
Slide 111: Aditya Birla Sun Life AMC
ADITYABIRLA CAPITAL Aditya Birla Sun Life AMC Aditya Birla Capital Ltd.
Slide 112: Trusted Brand with a Strong Recall
Trusted Brand with a Strong Recall Strong track record, reputation and experience of our promoters has enabled us build a strong brand legacy Our Promoters1 Business Mix INR 3,115 bn 50% 36% Equity QAAUM Total MF QAAUM2 Non-Equity QAAUM INR 1,360 bn INR 1,755 bn ownership ownership Our INR 7.9 INR S
Slide 113: Digital Strategy - Maximizing Assets and Forging Partnerships
Digital Strategy - Maximizing Assets and Forging Partnerships Seamless Customer Customer Acquisition Utilize cutting-edge Experience through through API ecosystem technology to differentiate our assets to establish partnerships service offerings with external partners Leveraging Ecosystem Data and A
Slide 114: Our Digital Assets: Customer & Distributor Platforms
Our Digital Assets : Customer & Distributor Platforms Customer Distributor INVESTOR DISTRIBUTOR S 100k S ABSL MF Customer Portal ABSLMF Partner Portal Partner App + Investor App Active Savings Lifetime Installs Account 1.4 cr (FY23-24 Total Website Visitors till 24 Jan'24) 1.54 M 1.2 M Lifetime Inst
Slide 115: Unified Investor Experience: Seamless Navigation
Unified Investor Experience : Seamless Navigation Ensure a responsive design optimized White Space: Integrate ample white space to Differentiator for various devices, especially mobile, enhance readability and reduce visual clutter Features for an improved user experience. on the website. Investor A
Slide 116: Digital Harmony: Unified MFD Experience Across Platforms
Digital Harmony : Unified MFD Experience Across Platforms Differentiator SIP Win Back and One Click SIP and Reactivation of expired/ Features Retention tools Lumpsum journeys cancelled SIP Partner Assets Engage with Customers Intelligent rule engine to offer Benefits through personalized links – can
Slide 117: Collaborate with Ecosystem Firms to Enhance Service Offerings
Collaborate with Ecosystem Firms to Enhance Service Offerings Strategic Funds Digital Programmatic API Product Placement Co-Creation Integration Campaigns Strategic Fund placement in Leverage Ecosystem for Custom Audience Campaign Acquisition Tool : Ecosystem partners personalized investments to tar
Slide 118: Digital Horizons: Salary SIP
Digital Horizons : Capabilities for Customer Acquisition Empowering Embedded Financial Futures: Salary SIP Salary SIP is a smart and disciplined approach towards investing in Mutual Funds that allows employees to allocate a portion of their monthly salary for investment at regular Interval Key Featu
Slide 119: Digital Horizons: Active Savings App at a Glance
Digital Horizons : Active Savings App at a Glance Key Highlights Register with 3 easy steps DON’T LET MONEY SIT IDLE IN YOUR ACCOUNT Invest and withdraw your money with a single swipe Invest through either Net Banking or UPI or NEFT/RTGS Aim to earn higher on your surplus money Allows investor to in
Slide 120: Digital Horizons: Unleashing Customer Acquisition
Digital Horizons : Unleashing Customer Acquisition Enabling API Ecosystem for partners and investors Electronic Value Added KYC Products API Enable MFDs with E-KYC for On Request API for VAP for paperless onboarding, with Distribution Partners. available NRI KYC support. Integrate APIs seamlessly wi
Slide 121: Elevating Customer-Centric Analytics and Automation
Elevating Customer - Centric Analytics and Automation Digital Enablement Customer Life Stages Onboarding Payment option pre-filled based on Due for Expiry last banking transaction Upsell/Cross Sell E-mandate for recurring payments like SIP Increase Product Share Knowing Customers Better Qualitative
Slide 122: Digitization to Improve Customer Service and Productivity
Digitization to Improve Customer Service and Productivity Empowering Investor Servicing Seamless Transactions across 225 Channel Partners and Servicing modules 23 Robust Platforms for a Multichannel WhatsApp & Bots - Shareable ARN Hardcoded Experience Voice & Chat Transaction capability - Easy link
Slide 123: Way Forward
Way Forward Build scale through Innovations Strategic Partnerships NRI & SME KYC New customer Acquisition Drive with strategic partners Leveraging MFD ecosystem by providing Value Added Product API Partnering EOP’s (Execution Only Platforms) for New SIP with Focused funds. Customer Acquisition Lever
Slide 124: Aditya Birla Sun Life Insurance
Aditya Birla Sun Life Insurance 122
Slide 125: Life Insurance Snapshot
Life Insurance Snapshot Individual FYP 1,974 Cr 4,000+ Cities Group FYP 3,388 Cr 82,043 Cr 0% 100% 3,048 Cr 79% 360+ Non – ULIP Mix Net Worth* AUM Renewal Premium Own Branches 5,823 Cr Total Premium 56,000+ 11,101 Cr Agents 87% 13M Persistency 1.91 6.96% 11 Solvency Surrender 38% Banca Tie-ups Margi
Slide 126: Our Strategy
Our Strategy Deep focus on Digital Value Driven Growth Adoption of Digital first mindset Focus on Value accretion while driving business Growth Presence of Digital journeys across all business facets and for key stakeholders Augment diversified distribution mix to avoid polarization of business Inve
Slide 127: Simplifying Life Insurance Across Customer Life Cycle
Simplifying Life Insurance Across Customer Life Cycle s Prospecting Partner Onboarding Advisors Agency i Customer Employee Customer Advisor Servicing Servicing 125 Aditya Birla Capital Ltd.
Slide 128: Simplifying Prospecting
Simplifying Prospecting 126 Aditya Birla Capital Ltd.
Slide 129: Sales Buddy - Our Prospecting App
Sales Buddy- Our Prospecting App Create Presentation Product Guide Build Customised Benefit Quick Plan Related Info Combinations illustrations DIY Bundled illustrations Instant PASA Poster of the Day Get More Instant Pre-approved New Social Poster Customers Offers Everyday Lead Generation Tools Shar
Slide 130: Hyper Personalised Product Presentations
Hyper Personalised Product Presentations Presentation Options User Friendly Inputs Quick Summary Custom illustration 128 Aditya Birla Capital Ltd.
Slide 131: Poster of the Day – WhatsApp Marketing
Poster of the Day – WhatsApp Marketing English Hindi Marathi 129 Aditya Birla Capital Ltd.
Slide 132: Product Guide for Advisors
Product Guide for Advisors Product List Salaried Term Plan Platinum Gain Plan 130 Aditya Birla Capital Ltd.
Slide 133: Marketing Collaterals at a Click
Marketing Collaterals at a Click Birthday Wishes Repository Updated Content Vernacular Options Personalisation 131 Aditya Birla Capital Ltd.
Slide 134: Prospecting: Sales Buddy Snapshot
Prospecting: Sales Buddy Snapshot 1.2 Lacs+ *Sales Buddy Active v/s In-Active Downloads 37,000+ 32,000+ 37%* Higher Monthly Product Monthly Active Users Business Guide Views Productivity 3 Lacs+ 15% (m.o.m) 33%* Total Content Increase in Average Higher shared per month Time Spent Number 4.5 of Polic
Slide 135: Simplifying Onboarding with Analytics
Simplifying Onboarding with Analytics 133 Aditya Birla Capital Ltd.
Slide 136: Onboarding: Driven by Analytics
Onboarding: Driven by Analytics Pre-Approved Sum Assured (PASA) Automated Underwriting Key Features Key Features No Financial Data Collection- Automated Analytics Underwriting Ext Sources Data Validation No Medical No KYC Digitization & AI /ML Assisted Real Underwriting Data Structuring Time Decisio
Slide 137: Simplifying Renewals
Simplifying Renewals 135 Aditya Birla Capital Ltd.
Slide 138: Optimizing Persistency Growth with Analytics
Optimizing Persistency Growth with Analytics Customer and policy level variables 7+ Analytical Models Output based Program Allocation ZARA BOT Demographics Feedback Loop Contact Centre Higher & Salahkar Conversion GPM Auto and Persistency Distribution Program Communications Growth Allocation Branche
Slide 139: Steady Increase in Persistency
Steady Increase in Persistency 13M 61M 13th Month 100 90 86.7% 87.1% 83% 84.2% 81.9% 78% 80 Focus on auto-onboarding 70 Focus on key geographies 61.3% leading to better due and related key programs 60 53.6% conversions 49.3% 50.5% 45% 48.6% 50 Focus intervention on Digital communication 40 product b
Slide 140: Renewals: Zara Bot: Use Case
Renewals: Zara Bot: Use Case Zara is a First of its kind Audio Visual (AV) bot supported by machine learning facilitating on-call digital payment assistance for renewals. 8 Languages Intelligent Call Cobrowsing 24*7 Availability 477 Cr* 55% Highest YTD Bot Opportunity to ML Based Collection collecti
Slide 141: Resulting in….
Resulting in…. 139 Aditya Birla Capital Ltd.
Slide 142: High Digital Adoption across Customer Life Cycle
High Digital Adoption across Customer Life Cycle Customer Customer Digital Onboarding Self Servicing Renewal 100% 93% 80% 80% • 100% new • 26% of transactions • Digital collection business from WhatsApp & at 80%, 4.1% processed digitally Chatbot contributed Y-o-Y growth in 9M FY24 • 64% adoption for
Slide 143: Aditya Birla Health Insurance
Aditya Birla Health Insurance 141
Slide 144: Our Model: Empowering People to Lead Healthier Lives
Our Model: Empowering People to Lead Healthier Lives INDUSTRY V/S ABHI Promise of Good Health Sickness Funding Health Assurance Model Know Your Health (Breakage Model) (Usage Model) Language of Fear) Language of Good Health Improve Your Health Insurance First Health First (Low Engagement) (Hyper per
Slide 145: A Digital, Tech & Data Company Driving Health & Insurance
A Digital, Tech & Data Company Driving Health & Insurance Cloud Agnostic Digital Index Micro Services Reusability Cross High Grade Data led Modularity Agile Functional Squad Data security Innovation Methodology The principles and culture on which we are building our differentiated model 143 Aditya B
Slide 146: ABHI Health Assurance Model
ABHI Health Assurance Model Health First (Promise of Good Health) Insurance Incentivised Health Management Onboarding Wellness Program Acquisition & Servicing Health & Wellness Ecosystem Claims Renewals Acquisition & Servicing Renewal & Onboarding & Claims Retention Digital led data-driven experient
Slide 147: Health First: Engagement - Introducing Activ Health App
Health First: Engagement - Introducing Activ Health App Know your Health “One-stop Solution” for Health and Wellness needs • Comprehensive Health insights • AI & data-driven Health & Wellness scores In-house built Native App 4.5 stars - Play Store rating Improve your Health • Disease Risk Management
Slide 148: Health First: Data-Driven Health Risk Stratification
Health First: Data-Driven Health Risk Stratification Health Data Wellbeing score 150+ Health Data points Holistic Health Score 1.5 Mn+ Well-being Score Physical Weight & BMI Blood Pressure generated Age & Gender Diabetes Health 15.7 million data points used in Activity & Fitness Choice Lipid & Cardi
Slide 149: Insurance: Acquisition & On-boarding
Insurance: Acquisition & On-boarding Leverage Digital Platforms Accessibility, Integrated mining intent & superlative lead Management 40+ Digital partners experience System Dynamic Contextual, Product modular & differentiated Configurator products Retargeting AI led, (CDP), Omni Integrated channel &
Slide 150: Insurance: AI Led Digital Servicing
Insurance: AI Led Digital Servicing Activ Health App Website A Holistic Health & Wellness Ecosystem Real-time Updates Fastest growing servicing channel for ABHI Multilingual Chatbot WhatsApp / Chatbot AI Voice Bot AI/ ML based NLP bot with intent AI led, intent recognition based servicing recognitio
Slide 151: Insurance: AI Led Digital Claims
Insurance: AI Led Digital Claims First SAHI player to give end-to-end claims journey on WhatsApp Digital claims adoption (%) AI driven Simplified document & intuitive classifier journey 23.1 Adoption % 8.8 E2E digital assistance Intelligent for claims prompts Q2 exit Q3 exit FY24 149 Aditya Birla Ca
Slide 152: Insurance: Digital Renewals Enhancing Experience
Insurance: Digital Renewals Enhancing Experience Up-sell/ Cross-sell Digital Renewals Digital Renewals Add Member ~83% Change Policy Increase Sum as of Dec’23 Tenure Insured 54% Through Activ Health App, Change Occupation Customer Add WhatsApp and Bot lead journeys Optional Covers App WhatsApp Chang
Slide 153: Transformation Towards Data/AI-driven Health Platform
Transformation Towards Data/ AI-driven Health Platform Insights & Models Employee Sales Performance Product / Engagement Data & Risk Innovation Management Analytics Claims/Fraud waste abuse(FWA) Up-sell & Cross-sell Continuous Monitoring in Efficiency improvement Health Insurance Company Data / AI d
Slide 154: Resulting in Superior Outcomes
…Resulting in Superior Outcomes …on course to achieve breakeven with keen eye ABHI is the fastest growing SAHI, 3 Year CAGR 46% on unit economics 57% 33% Fastest among 2717 SAHIs 134% 127% 49% 1727 120% 110% 1301 872 56% 63% 59% 59% 69% 72% 72% 66% 28% 28% 34% 44% FY20 FY21 FY22 FY23 FY20 FY21 FY22
Slide 155: Early results of our Health Assurance Model
Early results of our Health Assurance Model Loss Ratio* of physically active customers Customers earning higher health returns have is significantly lower than inactive lower loss ratios* Base Loss Ratio -6% -17% -23% 0-0.5K Base Health Returns INR -37% Loss Ratio 0.5K-1K -18% 1K-2K -32% 2K-5K -42%
Slide 156: Way Forward
Way Forward Scale Expand Transform into a Health offerings, Digital Health Health and Data add insurance on Ecosystem platform demand with relevant & contextual services 154 Aditya Birla Capital Ltd.
Slide 157: Thank You
THANK YOU 155 Aditya Birla Capital Ltd.
Slide 158: Disclaimer
Disclaimer The information contained in this presentation is provided by Aditya Birla Capital Limited (“ABCL or the Company”), formerly known as Aditya Birla Financial Services Limited, to you solely for your reference. Any reference herein to "the Company" shall mean Aditya Birla Capital Limited, t