i3 Consulting
Non-Banking Financial Services

A non-banking financial company (NBFC) also referred as non-banking financial institution (NBFI) does not have a full banking license or is not supervised by a national or international banking regulatory agency. NBFCs however facilitate bank-related financial services, such as investments, trading and brokerage, wealth management, private financing, sector specific lending, risk pooling and contractual savings amongst others. They complement the banking system and provide multiple alternatives to transform an economy's savings into capital investment which act as backup facilities should the primary form of intermediation fail.

NBFCs as an industry segment offers immense opportunities and growth potential. i3 has proven expertise in working with more than twenty-five NBFC clients across the globe. To cater to the ever-increasing demands from this segment, i3c has the following solutions:

Strategy

Given the competitive environment, an NBFC will need to get its bets right about the markets it serves the customer segments it targets, the product offerings it brings to the table, the distribution channels it uses and the financial impact of these decisions to have a sustained revenue and profitability growth. We thus help our clients in:

  • Formulating and validating business plans
  • Arriving at enterprise value by using different industry benchmarked valuation constructs
  • Devise strategies for maximizing revenues and reducing costs thereby optimizing the profits
  • Evaluate the impact of a particular strategy
  • Operationalize the strategy by focusing on specifically identified initiatives in the areas of people, process and technology
  • Use analytics to develop, achieve and monitor specific KPIs

Sales and Marketing

Our sales and marketing solutions stack helps our NBFC clients to understand their markets and customers better thereby maximizing the revenue and tapping profitable growth opportunities. We offer assistance in:

  • Usage of analytics to predict profitable customer segments and help in channelizing marketing efforts
  • Using analytics to identify product profitability
  • Developing churn and retention models, deriving customer life time value and implementing customer relationship management framework
  • Analysing the impact of marketing spends and optimizing marketing mix
  • Using analytical insights with technology to improve customer experience

Risk Management

Given the loosely regulated nature of this industry, NBFCs are often accused of increasing the risk in the financial sector. Increasingly regulators are tightening the risk management requirements for NBFCs. Also, as recent experience has proven the risk management for NBFCs has become all the more important for their growth and sustainability. We help NBFCs in managing the risk better through different areas of assistance which are:

  • Enterprise risk management - Development and implementation of risk strategy, risk appetite, process for risk identification, assessment, mitigation, control and reporting
  • Risk governance - Devising the right set of governance structures, delegation of authority, governance framework and principles
  • Risk management policies and processes - Developing and implementing risk management policies such as credit risk policy, investment risk policy, operational risk policy, trading policy, product programs and associated risk frameworks. Operationalising the policies through processes and procedures/ SOPs
  • Risk analytics - Using analytics to develop specific models in the areas of credit risk (scorecards, IFRS 9 models), investment risk models (VaR), capital optimization models
  • Risk reporting - Creating templates and automated dashboards for regulatory and senior management reporting
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