LIC Housing Finance launches project for digital transformation

Currently, 35-40 per cent of the loan applications of the company are being processed digitally and the percentage will improve to 90-95 per cent post completion of this project, he said. Mohanty further said the company experienced good growth in September and the business has reached the pre-COVID-19 level during the month.

LIC Housing Finance on Thursday launched a project to digitise its operations with an aim to improve efficiency and optimise costs. The project -- Red (Re-imagining Excellence through Digital Transformation) -- 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. It will be implemented over the next 21 months, the company said. "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 CEO Siddhartha Mohanty told reporters.

When asked about the investment the company is making in the project, he refused to share any specific details. "This investment will not only improve our operations but will also cut costs," he said. The housing finance company has appointed Boston Consulting Group (BCG) as its consultant for the project and will be setting up a high-level project implementation group which will approve and monitor capacity building plans. He said the first step, under the project, to conduct gap analysis has already started. Currently, 35-40 per cent of the loan applications of the company are being processed digitally and the percentage will improve to 90-95 per cent post completion of this project, he said. "This project is for 21 months. From the beginning of the third year, 90-95 per cent of loan applications are processed digitally," Mohanty said. Going ahead, the housing financier will expand to newer geographies but that will be more through the digital mode than having a physical office, he said. At present, it has 282 branches across the country. Mohanty further said the company experienced good growth in September and the business has reached the pre-COVID-19 level during the month. "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," he said. He said momentum will continue in the coming months due to the upcoming festive season and expects further growth in October and November in the individual retail segment.