In the last few years, India has witnessed a social and financial revolution. With the Government’s impetus on financial inclusion (providing the formal financial services to every citizen), there is a rapid growth in microfinance industry. According to the latest report by Microfinance Institutions Network (MFIN), there are about 2.65 crore borrowers associated with microfinance institutions (MFI) with the loan amount outstanding at Rs 1,48,097 cr. This represents a growth of 39% over Q1 FY 17-18. The key reason for this growth is that India is still home to the second largest unbanked population in the world, comprising 191 million people who are more than 15 years old.
Driven by business growth, hiring in the microfinance sector is expected to increase by up to 25-30 percent in the next 12 months. Here are the top 5 job roles to look forward to:
Tech developers
Technology plays an important role to simplify and speed up these operations. For example, with digital documentation and electronic fund transfer, the average loan disbursal time has gone down significantly. Digital documentation using mobile devices also helps in real time information flow, especially in diverse land like India and cuts down the time for loan disbursement. This is a massive opportunity for IT application designers and developers who can decode microfinance operations and digitise it. Right from tech enthusiast who aspire to learn application designing and development to IT graduates can be suitable for this role. On-ground operations such as documentation of borrowers, background verification, loan disbursements, database management, and funds recollection are the lifeline of microfinance business
Data scientists
On a macro level, real time data analytics helps in finding meaningful insights about the portfolio performance, customer profile, collection patterns, and various risk scenarios. Using a robust data analytics engine, a microfinance company can also identify the new pockets of business growth. Here, the role of data scientists become important. While analytics engine works on a predefine algorithm or machine learning, data scientists can also bring human experience to the table.
Digital KYC and loan application using mobility devices has increased customer connect and reduced our turnaround time significantly. Loan underwriting process automation is possible with a robust rule engine and partner system integration for real time data transfer and validation. This cuts down our operational cost significantly and becomes a competitive advantage.
Risk assessment and management
Just like every other business, microfinance comes with its own risks. Hence, there is an unprecedented demand for risk management professionals who understand the nuances of microfinance business. The role involves development of risk management benchmarks and processes, setting up the higher and lower risk limits, and work with the management to continuously validate it. The person is also responsible for tracking geographical, demographic, regulatory, and other factors that may increase/decrease the business risk. An ideal candidate for risk assessment and management would be a finance graduate with experience with banks or non-banking financial corporations.
Marketing and business development
Microfinance companies enjoy reach in every nook-and-corner of the country through their branch network. Therefore, they can tap several cross-selling opportunities such as financing solar solutions, MSMEs, water and sanitation loans, and housing projects. Marketing professionals can identify these cross selling opportunities and engage into appropriate business partnerships to tap these avenues. Candidates with experience in rural marketing and strategic business alliance are relevant for this role. However, they should be ready for extensive travel to tier 2 and 3 towns and villages.
Accounting and finance
Accounting and finance is the backbone of every business. However, the importance gets manifold when the core business is lending. Accounting and finance professionals help the microfinance company keep a tab on operational cost, future financial projections, and present the future business plans to potential investors to attract new funding streams. Various accounts and finance roles require finance graduates to chartered accountants.
The author is the Chief Human Resource Officer, Satin Creditcare Network Limited
