Poonawalla Fincorp's Digital Turnaround with AI

 Poonawalla Fincorp Limited (PFL), a key player in India’s NBFC space under the Cyrus Poonawalla Group, is embracing next-generation technology to redefine its approach to debt recovery and customer experience. The launch of an AI-powered debt management platform marks a major milestone in its journey toward becoming a tech-first lender.

This newly launched system, revealed on Monday, transforms how the company handles collections throughout the customer lifecycle. The engine evaluates communications from SMS, tele-calling, and field visits, then formulates over 100 micro-strategies unique to each customer’s interaction patterns.

By doing so, the company has successfully reduced delays, replacing 4–5 days of manual processing with automated workflows that respond in near real-time.

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Quick and Targeted Recovery Engagements

The automation of delinquency response is among the platform’s most impactful upgrades. Previously, the channel allocation process post-default consumed three to four days—now, the AI reduces that to just under three hours, enabling faster and more personalized recovery efforts.

These AI tools are also sharper at predicting risk. With enhanced data models that factor in both customer behavior and transaction history, Poonawalla Fincorp reports a two- to three-fold increase in risk assessment accuracy over older techniques.

According to Arvind Kapil, CEO, “Our mission is to drive better outcomes through intelligence—not just speed. This is AI in action with precision, accountability, and foresight.”

Compliance Gets an AI Makeover

To elevate its monitoring standards, Poonawalla Fincorp has integrated Generative AI into its customer service audit processes. This ensures every agent call is reviewed for compliance automatically, providing both transparency and actionable feedback for ongoing improvement.

This rollout, active for six months now, has increased process discipline while freeing up time and resources previously dedicated to manual call audits.

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R&D Collaboration Brings Lending Intelligence

In March, Poonawalla Fincorp collaborated with IIT Bombay to design and deploy an AI-powered underwriting platform for retail lending. This joint innovation has streamlined credit evaluation using machine learning algorithms trained on real customer data.

The result has been a 40% increase in output for credit managers, as much of the underwriting is now handled autonomously, with minimal manual intervention required.

AI in Audit and Human Resources

In February, the company joined with ServiceNow to implement AI-based internal auditing tools. These solutions have improved tracking, compliance, and audit transparency across departments.

On the HR side, AI is now used to conduct candidate screenings, predict hiring risks, and improve recruitment efficiency. This ensures more accurate and equitable hiring practices that are also faster and more data-informed.

National Presence and Business Snapshot

Poonawalla Fincorp has a robust national footprint, serving 18 Indian states and two Union Territories with a workforce of nearly 3,600. Its offerings include personal loans, used vehicle loans, and MSME financing.

As of March 2025, the company recorded assets under management totaling ₹35,631 crore. While Q4FY25 profit dropped 81.2% to ₹62.3 crore due to exceptional items, revenue from operations grew 27% YoY, signaling strong underlying momentum.

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Leading with AI: The Future is Now

Through comprehensive integration of artificial intelligence across functions, Poonawalla Fincorp is moving beyond traditional NBFC models. Its transformation is rooted in automation, customer personalization, and strong governance.

With Arvind Kapil steering the ship, the company’s vision is bold but clear: to become a future-ready, intelligent financial institution that puts digital first—always.