Poonawalla Fincorp Strengthens Lending Efficiency with New Tech and Expands Loan Portfolio

In recent months, Poonawalla Fincorp Limited has made significant strides to enhance the quality and speed of its services. From embracing modern tools to introducing new lending products, the company is working towards reshaping customer experience across segments. Backed by strong operational performance and technological integration, Poonawalla Fincorp is aligning its offerings to meet the evolving needs of consumers and small businesses alike.

Transforming Debt Management with Advanced Technology

To address the growing demands of efficient collections and customer engagement, Poonawalla Fincorp Limited has deployed a new debt management platform powered by advanced analytics. The system is designed to interpret interaction data across multiple channels, including digital communications, telecalling, and on-ground collections. The most notable aspect of this platform is its autonomous decision-making engine, which uses over 100 micro-strategies tailored to individual customer profiles.

With this move, the company has reduced manual processes by up to five days. The channel allocation process, which earlier took three to four days, can now be executed in under three hours. This improvement helps agents reach customers sooner and with more context, increasing the chances of recovery while maintaining a respectful tone.

Also Read: Poonawalla Fincorp’s Gold Loan Offering: A Timely Step Toward Empowered Borrowing 

Predictive Models That Sharpen Risk Assessment

Alongside process efficiency, the company’s integration of machine learning models offers sharper insights into customer behavior. These models are reported to deliver risk assessments that are two to three times more accurate than conventional methods. With this level of precision, the company can better prioritise cases and ensure its collection strategies are both efficient and customer-friendly.

Arvind Kapil, Managing Director & CEO of Poonawalla Fincorp Limited, shared, “Our adoption of AI in debt management is about smarter, data-driven decisions that improve outcomes. By combining predictive insights with governance controls, we are redefining collection strategies to be more effective, adaptive, and responsive to customer engagement.”

What sets this system apart is its governance focus. With automated call audit features, the company can monitor calls and assess whether collection agents are following the company’s communication standards. This is crucial in ensuring compliance and protecting the brand’s reputation while dealing with sensitive financial matters.

Expanding Use of Automation Across Business Functions

Poonawalla Fincorp has also been working towards improving its internal processes. Earlier this year, it developed an underwriting solution in partnership with IIT Bombay. This platform helps automate the credit assessment process, primarily in retail lending. With a 40% increase in credit managers’ productivity already observed, the system appears to be making a measurable impact.

In addition, the company has partnered with ServiceNow to adopt automated systems for audit and governance. These changes are expected to support improved compliance and reduce turnaround time in key business processes. HR-related functions too have seen the adoption of predictive systems, especially in areas like recruitment risk management and candidate evaluation.

Also Read: The Growing Prevalence of Instant Personal Loans in India

Loan Offerings That Serve a Broader Audience

While technology is helping streamline operations, the company is also introducing products that cater to a wider customer base. In April, Poonawalla Fincorp rolled out two new offerings—Gold Loans and PFL Prime—as part of its expansion strategy.

Gold Loans

This offering targets individuals seeking short-term liquidity. Gold-backed loans are generally faster to process, and by introducing this product, the company aims to bring in customers who may not have access to unsecured credit. With flexible repayment options and competitive interest rates, the gold loan segment is expected to become a significant part of the firm’s portfolio.

PFL Prime

This is a curated loan product aimed at salaried individuals and professionals who maintain a healthy credit profile. PFL Prime is designed to offer preferential interest rates, faster approvals, and a smoother digital experience. This launch shows the company’s intent to serve customers who are seeking premium loan services with minimal friction.

Other Existing Offerings

Apart from these, the company continues to offer personal loans, business loans, and pre-owned car loans. Its focus remains on both consumer lending and supporting small and medium enterprises (SMEs) with accessible financing solutions.

Nationwide Presence and Continued Growth

Operating across 18 states and two Union Territories, Poonawalla Fincorp employs nearly 3,600 people and has built a strong network to serve a diverse customer base. As of March 2025, the company’s Assets Under Management (AUM)stood at ₹35,631 crore.

Despite a challenging fourth quarter that saw an 81.2% drop in net profit—largely due to prior provisioning and one-time costs—the company’s revenue from operations increased by over 27% YoY to ₹1,166.27 crore. This revenue growth reflects healthy demand and a growing loan book, even as the company prepares for sustainable profitability in the longer term.

Also Read: Poonawalla Fincorp Leverages AI to Revolutionize Debt Management and Governance

A Future-Oriented Approach to Lending

The steps taken by Poonawalla Fincorp in recent months are part of a broader strategy to build a future-ready financial services company. By investing in tech-first solutions, diversifying product lines, and maintaining a nationwide presence, the firm is steadily building momentum in the non-banking lending space.

As more customers look for digital-first, flexible financial solutions, companies like Poonawalla Fincorp are setting the tone for what the future of lending might look like—quick, responsive, and built around individual needs.

Conclusion

In a competitive market, Poonawalla Fincorp is choosing to lead with innovation and customer-first offerings. From AI-driven efficiency in collections to new product lines like gold loans and PFL Prime, the company is addressing the full spectrum of consumer needs. While quarterly profits may have taken a hit, the bigger picture reflects a company that’s investing in long-term relevance and operational resilience.