Ujjivan Bank sees a 20% surge in digital transactions with Setu BillCollect
Ujjivan Small Finance Bank is amongst the leading small finance banks in the country. As a mass market bank, they work toward financial and digital inclusion for the unserved and underserved segments.
They have a network of 160+ branches across 24 states and offer various forms of credit products, like MSE and micro loans to their customers.
IN FOCUS
Loan EMI collections with—
Setu BBPS BOU
Collect repeat payments digitally or offline
How Ujjivan used Setu BBPS BOU
Ujjivan’s Customer Relationship Officers meet their customers regularly to collect EMI repayments. But post COVID, Ujjivan wanted to reduce their dependency on offline payments, and increase digital EMI collections. This could be done via BBPS, which would also give their customers flexibility to choose the payment app of their choice, and pay at their convenience.
BBPS or Bharat Bill Payment System is an NPCI-powered interoperable payment network. It connects businesses who need recurring payments—like Ujjivan—to their customers via third-party applications like PhonePe, GPay, PayTm etc.
The challenge—Increase no-contact digital payments
Aside from on-boarding as a biller on BBPS to enable digital payments, Ujjivan also wanted to educate their customers about this new alternative to repay EMIs. For some quick context, Ujjivan’s loan repayment statistics stood at—
₹45 lakhstotal monthly EMI payments 90% offlinecash collections
Our solution
Ujjivan was on-boarded on BBPS using Setu BillCollect APIs, which enabled digital collections via 400+ UPI and bank apps. We also ran an awareness campaign for Ujjivan’s customers on digital repayment options.
Ujjivan’s borrowers can now make loan repayments using a wide range of BBPS enabled apps which they already trust and use daily; including Ujjivan SFB’s mobile banking app.
Ujjivan has been observing significant month-on-month growth of digital payments from their customers.
What Ujjivan loved about working with Setu—
Ease of repayments for customers
Significant drop in cost of collections
Ease of reconciliation with Setu’s dashboard and reports
20% surge in transactions in the first month of awareness campaign
“After Setu on-boarded Ujjivan SFB on to the BBPS platform, all our loan customers can make their loan repayments at their convenience using a wide range of BBPS apps.
With quick guides and short videos provided by Setu, this digital mode of loan repayment has seen a healthy double digit growth month-on-month. Reconciliation of payments is easy with real-time data dashboards. This initiative is a start of a long-term partnership with Setu for loan repayments and other API initiatives of the bank.”
Dheemant Thacker — Head of Digital Banking, Ujjivan
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