1 min read.Updated: 08 Oct 2020, 08:44 PM IST Edited By Anulekha Ray
From the beginning of the third year, 90-95% of loan applications are processed digitally, said LIC Housing Finance CEO Siddhartha Mohanty
The project will be implemented over next 21 months
To optimise cost and improve efficiency, the LIC Housing Finance on Thursday launched a project to digitise its operations. Named as RED (Re-imagining Excellence through Digital Transformation), the new project "will bring transformational changes by organically linking the company's work culture, strengthening processes across all verticals, deepening customer engagement and adopting the best-in-class technology to build capacity," the company said. The project will be implemented over next 21 months, the company added.
The housing finance company has appointed Boston Consulting Group (BCG) as its consultant for the project. It will be setting up a high-level project implementation group which will approve and monitor capacity building plans.
“We are investing in this project with long-term objectives that would generate more stakeholder value, expand geographies thereby contributing to the economic growth of the country," its managing director and chief executive officer Siddhartha Mohanty told. “This investment will not only improve our operations but will also cut costs," he said.
At present, 35-40% of the loan applications of the company are being processed digitally and the percentage will improve to 90-95% post completion of this project, he said. "From the beginning of the third year, 90-95% of loan applications are processed digitally," Mohanty added.
On growth in September, Mohanty said “I observed sentiment is back. People are now not delaying their buying decisions because of so many incentives such as lower interest rate, attractive products. We are back to pre-COVID-19 level in September and have experienced growth."
The housing finance firm currently has 228 branches spread across the country. It plans to open new branches in future. The company plans to open more offices via digital mode, rather than physical offices.
LIC Housing Finance has disbursed ₹2,115 crore worth of subsidies to its customers under the credit-linked subsidy scheme (CLSS) as part of PM Awas Yojana since its inception in 2017, an official said. Under this scheme, the second-largest mortgage player has disbursed more than ₹12,000 crore of affordable housing loans to 1,01,521 borrowers till September-end, Mohanty told PTI.