In terms of pattern, our readers continue to trust printed newspapers more than the information & rumors circulating on social media. We have been using the cloud not only for dissemination of news but also for various customer focused initiatives. We have launched an online school admission portal where parents can enroll their children in schools through the website. An online cloud solution has been developed where advertisements can be booked for the newspapers. Also we launched an ecommerce platform for our publishing business, where readers can buy the famous Bengali titles online as well as read the selected titles as eBooks. For us the three most important pillars are agility, speed and security.
When we talk about digital transformation we have to break in into two parts. Fast is defining the meaning of digital and then determining what are the vehicles needed to achieve the digital strength. Gartner's mentions three system - system of innovation, system of differentiation and system of record. Systems of innovation are what are built very fast. System of differentiation is what makes you different from someone else. System of record is the core system. System of record definitely should not be on cloud. System of differentiation may or may not go to cloud and system of innovation mass goes to cloud. As a company, Magma decided to go for cloud in a big way. In banking we have something called credit. This indicates whether a person is eligible for a loan or not. This is done by a separate credit department which takes the decision whether the customer has a good record. We are trying to upgrade this entire credit decision on cloud. This will help reduce the time between the customer applying for a loan and its disbursement.
Magma has invested in upgrading it's IT Infrastructure to a large extent over last couple of years. From a standalone data center few years back, Magma’s IT Infrastructure is now hosted in a state of the art data center with a hybrid setup, having engineered systems and virtualized environment. In the earlier days, the application team often faced challenges in getting server allocated quickly.
To handle this, Magma has implemented private cloud. It solved the earlier challenges around server allocation, as VMs could be quickly provisioned for the application development teams.
Magma has also delved into public cloud, where we hosted utility production applications and UAT environments. However from IT strategy perspective, Magma has kept the Enterprise applications outside the ambit of public cloud. In the immediate future this approach may continue, till there is more clarity on hosting enterprise applications with customer data on public cloud.
We have adopted Mobility heavily. All our 3500+ field executives are enabled with Android tablets, with custom-built apps for sales, collection and all other activities. Business and IT have been working very closely together to create a "virtual office" model, where the field executive can do everything without coming to office. 97% of all loan applications now get generated from a field officer's tablet. We have also digitised the holy grail of credit screen which is ahead of competition in NBFC and even in the Banking sector. An app has been built intelligently with all possible combinations of credit rules to identify a customer and figure out Magma's offering to him on the move. We have invested in leading MDM solutions, which puts us at some comfort in terms of data security in the tabs. We were an early adopter of Public cloud as well. We are planning to reach out to our channel partners also through mobile apps soon.
Magma group has been building up on its digital transformation journey over the last couple of years with the pace of change accelerating every passing year. The initial phase of digital transformation was targeted towards improving the life of the field executives. Prior to the transformation, entire business sourcing process was getting managed via pen and paper with huge dependency on the back-office team leading to larger turn-around-time for loan disbursement which not only impacted the efficiency of the organization, but it also impacted the customer satisfaction. Over last 3 years, Magma has changed the way business is done. As part of the transformation journey, Magma enabled all the 3500+ field officers with Mobile Apps for sourcing business and collecting EMIs. The devices were protected by best of the breed Mobile Device Management solutions to ensure data security and remote management. As a result, now almost all the loans in Magma portfolio originates from an Android app.
The next big candidate for digital transformation was the Operations department. Magma invested in a robust document management system and integrated scanning system to smoothen the paper handling work. Further digitization was done when the field executives started taking snaps of the KYC documents from the field itself, thus reducing the disbursement time further.
Since Magma's business depends heavily on the Dealers/DSAs, Magma decided to enable them by building a Channel portal where they could get ready updates about the business getting done and reports about their payouts.
Magma also decided to take the employee digital experience internally to the next level. An exciting Employee portal was implemented on complete open source stack to make it one-stop solution for all employee policy related information and other people centric work items. Also Magma invested in implementing a best in class HRIS solution which strengthened the overall HR processes.