Q] How do you see the role of Digital shaping the future of NBFCs, and what initiatives has Shriram Finance undertaken in this regard?
I would say that, given our large rural presence—53% of our business is rural—this segment is developing rapidly. However, our strategy will continue to be phygital. There are many Indians with varying levels of digital acceptance and usage, so it will be a phygital approach. Digital is advancing rapidly, especially in the post-COVID era, but a phygital strategy remains essential; particularly for a product like gold loans. Taking out a gold loan is inherently a physical process, requiring customers to visit a store in person, present their gold, and have it appraised. So, when it comes to gold loans, an important product in our portfolio, we foresee a phygital future.
Q] What are the key trends that are currently dominating the NBFC sector?
Consumer’s needs are evolving. We have observed that the requirement for funds is changing, whether it’s for travel, medical emergencies, school fees, business needs, GST, or tax payments— the needs are often unexpected expenses that require quick access to funds. Gold loans are well-suited for these needs because they provide quick access to money. As Indians, we buy gold, but it’s not something we wear regularly; you can’t wear all your jewellery everyday. So, it can be put to good use when such requirements arise. Although there is sometimes a stigma attached to using gold during a crisis, that trend seems to be changing. People are becoming more practical, and using their spare gold to get credit.
Q] Please elaborate on the concept behind the #JitnaSamayUtnaByaj campaign. What insights led to the development of this unique proposition for gold loans?
We believe in staying connected with our customers and understanding their changing needs. This means that we research, understand, and analyse comprehensively. Through this process, we discovered that customers are now using gold loans as a continuous line of credit, borrowing against their gold. They sometimes want to wear it for occasions, such as weddings or other functions, and then they put it back. They continuously use this as a line of credit for their needs, which represents a change in the consumer’s attitude towards gold loans.
We thought it would be beneficial to communicate this evolving need, and provide a facility that offers flexibility and affordability, especially ahead of the festive season. Festive times always bring a need for funds, with expenses arising as the family gets together. We felt that this was the right time to highlight this feature of our product—that you can take a loan for one month, a year, or any duration you wish. If after seven days, you need your gold back or wish to repay the loan for any reason, it’s possible. We felt it was important to talk about this flexibility, which is highly useful for our customers.
Q] What kind of response has the campaign received so far?
The response has been very positive. We’ve just started, focusing initially on South and Maharashtra. We’ve launched the campaign in a select set of states to gather feedback. So yes, response is a key metric for us, and people seem to have noticed and liked it, because it’s something different, presented in a relatable and humorous way. So far, the feedback, both internally and externally, has been good.
Q] What is the target demographic for this campaign? How is Shriram Finance reaching out to them, and what channels are being used to amplify the campaign’s message?
It’s a multimedia campaign that includes TV, digital, and on-ground activations. It is thoroughly a multilingual and multimedia campaign, because in the South different states speak different languages; additionally in Maharashtra, both Marathi and Hindi are widely spoken. So, we have used a multilingual, multimedia approach. The target demographic is males and females aged 30 to 50. The latest data shows a fairly encouraging number of women also taking this loan; they often come with their husbands or friends. The patterns are changing on the ground, reflecting the evolving landscape of India.
Q] Going forward, what marketing strategies have you planned for driving growth for Shriram Finance’s overall business?
Understanding our consumers first, being customer-centric, and supporting India’s dreams, aspirations, requirements, and needs with our lending products are a key priority for us. India is an aspiring nation right now—everyone wants to achieve more, as seen with the rise of the gig economy. Our focus is on understanding these changing consumer needs to support this aspiring India. Secondly, developing multilingual capabilities is crucial because India is diverse, with many different regions and languages. To connect with the common man and woman, we need to be multilingual. Language plays a critical role in our strategy going forward.
Multimedia is also very important. There are various segments in India, some that are fully digital, some segments that are not digital at all and others that still watch Television—even the type of Television being watched varies.The media landscape is changing rapidly, and staying on top of these changes is essential. We need to understand where our consumers are and make optimal media plans, which is a major priority for us. The biggest challenge, of course, is differentiation because it’s a vast market, and you need to stand out. You need to be unique and clearly defined. That remains our greatest challenge and focus: to be different and visible.
PROFILE
Elizabeth Venkataraman is the Executive Director & Head of Marketing at Shriram Finance. Prior to joining Shriram Finance, Elizabeth was heading the marketing function at Kotak Mahindra Bank which included consumer, commercial, wholesale and private bank. Over the last 20 years, she had worked with a number of businesses including Wealth Management, Securities, International, Life Insurance and General Insurance. She is a graduate in Commerce from Jyoti Nivas College, Bengaluru and an MBA (Marketing) from Narsee Monjee Institute of Management Studies, Mumbai.
ABOUT THE BRAND
Shriram Finance Limited, the flagship company of the Shriram Group, is one of India’s largest retail asset financings NBFCs with an AUM of over Rs. 2.33 trillion. Established in 1979, it provides a wide range of financing solutions, including pre-owned commercial vehicles, two-wheelers, MSME loans, gold loans, and personal loans. With a vertically integrated business model, Shriram Finance serves Small Road Transport Operators and small business owners across India. It operates through 3,095 branches and a workforce of over 75,800, serving 8.7 million customers nationwide.
FACTS
Creative Agency: Simple Advertising Ideas
PR Agency: Concept PR
