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Non-banking financial companies(NBFC) Business Model

Home Learn Non-banking financial companies(NBFC) Business Model

NBFC Non-banking financial companies(NBFC) Business Model

Table of Contents

  • Nbfc Business Model
  • Checkpoint For An Nbfc Business Model
  • Does An Nbfc Even Need A Business Model?
  • Why Is It Important To Outline The Business Model Of An Nbfc?
  • Steps For Creating An Nbfc Business Model
  • Checking Of The Validity Of Nbfc Business Model
  • Benefits Derived From An Nbfc Business Model

Non-banking financial companies(NBFC) Business Model

NBFC BUSINESS MODEL

  • The New NBFC regulatory rules has a goal to build a well-informed cadre population, that has abilities and is able to attain credit and a rating which better elucidates the repayment capabilities.
  • The Economy calls for the NBFC’s to grasp the importance of alternate data and make better use of Technology so that it can entrench advance credit scoring model incorporating the social graph, personal network, employment history and educational background of the borrower into their credit scoring rules.
  • The true potential of shadow Banking sector became apparent during the great crisis of 2008. Even though there are certain regulatory supervision, NBFCs are still seen as shadow banks. A great deal of attention regarding the financial stability and strengthening regulation and supervision of the shadow banking sector was brought forward during the G-20 summit in 2010. The refinement of NBFC regulatory framework to rein shadow banking activities that  make the financial stability vulnerable is under progress  by RBI ,along with various other regulators.

Checkpoint for an NBFC Business Model

  • A business plan is a document that defines the nature of the company, its objectives/goals, and the marketing techniques that will be implemented.
  • A business plan is necessary for every corporation, whether it is to ensure earnings, attract investments, or even acquire a loan for working capital/fixed capital.
  • The organisation would be aimless without a business strategy since there would be no goals or objectives to attain. A well-structured business plan will guarantee that your company concentrates on its most important goals.
  • Let's take a closer look at the NBFC Business Model.

Does an NBFC even need a Business Model?

  • All the NBFCs in India are continually working together by pooling their resources in various sectors including Agriculture , Micro and small scale Enterprise, income creation , transportation and to the Economically weaker sections of the society.
  • A business plan is mainly needed when there is high competition in the Market. As far as NBFCs are considered, the competition is extremely tough and accordingly creation of business model for NBFCs is imperial.

Why is it Important to outline the business Model of an NBFC?

Following are some rationale regarding why BUSINESSS MODEL FOR NBFC is imperial apart from giving the business a goal and an objective.

  • It works as a useful tool to various stakeholders including prospective investors, financial institutions, funding institutions before granting loan.
  • It also lets an NBFC set a benchmark.
  • It results in long term profitability.
  • Helps the employees stay up to date with the goals of the companies.
  • An efficient business plan would always come handy in arduous situations.
  • Its apparent from the above requirements that it is very important to have a well-outlined business model.

Steps for creating an NBFC Business Model

Creating a business model for NBFC is a priority in the success of an NBFC. Below are the requirements for starting an NBFC Business Model:

1. Services Offered- First thing to consider in your NBFC Business Model is to find what services your NBFC will be offering to the consumers. It is essential to know what the requirements of the market are and offer services based on the requirements. There are some services and they are:  loans or advances, investment business.

2.  Executive Summary- The executive summary describes what are the main aims of the business are, and it should also help the reader understand the picture of the business facts. The Executive summary should make sure that the reader gets a clear understanding of the business. It must be concise, precise and must get straight to the point.

3. Draft the Basic Plan- Consider researching different forms of NBFC business models available in the market. There are various business structure templates obtainable. Choosing a proper template for your NBFC business is a vital component.

4.  Goals/ Mission and Vision Statement- Having a vision and mission statement for your business model of NBFC to summarise the goals of your NBFC to stakeholders and shareholders.

5.  Description of the Company - After preparing the mission/vision statement of your NBFC,indicating which sectors your NBFC would be heavily concentrated on. As well as, it’s necessary to highlight what geographical locations would be serving. This allows potential buyers, clients and investors in having all of the necessary information in order to make an informed conclusion of the services of your NBF

6. Business structure : The structure of business should also be included in the business plan for eg the business types , the legal formalities it has to go through. Usually , the widely adopted structure is companies under Companies Act 2013.

7. Budget:  the working capital of the NBFC shall be  shall be Estimated in the starting phase of NBFC company. Not only working capital , long term financial planning too needs to be done. Moreover, the certain sum of amount shall be put aside with the RBI for registration and other legal formalities. A separate clause must be present regarding the financing and budget of NBFC.

8. Background of Promoters: the NBFC business plan shall also include background of the promoters including the qualification , interest in other entities. It brings a realibility for NBFC as it becomes more transparent and trustworthy.

9. Revenue from operation and marketing: this clause must include the tools of marketing that would be use by NBFC to gain investors and customers.Also, how the NBFC is planning to market the product it offers shall also be included in this section.

10. Structure of Organisation:  organization structure would help understand how the information passes through in the organization. The red-tapsim involved. The organizational structure should clearly define the roles and responsibilities of the top management, middle level management and lower level management.

11. Financial structure:  a well defined financial structure shall also be included in the business plan that would clarify the expenses of the NBFC.

12. Merging with financial technology Co.: if in the future , the NBFC is planning to digital, the NBFC must mention this in business plan. This would attract a number of new investors.

Checking of The validity of NBFC business Model

A properly drafted NBFC business model plan points ought to be included in an NBFC business model. Although , the present day market factors have to kept in mind and it shall be rational for a particular period. It is essential to review the business plan every now and then. There would always be some external elements influencing the business plan that includes dynamically changing technology , digitalization, customer preference variance. So, an NBFC business Model/plan drafted must be put to immediate use.

Benefits derived from an NBFC business Model

Drafting a good business model will not only bestow the NBFC with a road map but will also prove to be helpful in curbing the risk. If the actions of the NBFC deviates from the requirements, the business plan will help in making improvements.

  • Strategies of the business:  NBFC is a solid business model give the NBFC a goal. It will assist the bridge the gap between what had to be done and what is actually done.
  • Prioritises Work:   To be Productive is to make sure that the most important task are being done first. A business plan comprises of all the tasks that are most important, so that the NBFC does not stay behind in those key areas. An NBFC business plan also includes the procedure that the NBFC has to go through.  
  • Setting Business- A business plan is a document that defines the nature of the company, its objectives/goals, and the marketing techniques that will be implemented. A business plan is necessary for every corporation, whether it is to ensure earnings, attract investments, or even acquire a loan for working capital/fixed capital. The organisation would be aimless without a business strategy since there would be no goals or objectives to attain. A well-structured business plan will guarantee that your company concentrates on its most important goals. Let's take a closer look at the NBFC Business Model.
  • Financial management – An NBFC is not much different from a financial institution like a bank. An NBFC too give loan and advances ,acquire stocks , and deal with business of chit funds. By crafting a business plan an NBFC secure a safe position in terms of financial management. The business plan can be shown to investors to ask for investment. Also, its not a very unconventional idea that a business plan can also help in marketing for an NBFC.

Disclaimer: The content of this post isn't considered to be professional or legal advice, We aren't responsible for any damages arising from your access to the location content & must not be relied on or used as a substitute for legal advice from a lawyer professional in your jurisdiction. CARajput is among India's big digital compliance services platform which committed to helping people have started & developed their businesses. We had started with the goal of creating it easier for start-ups to start out their business. Our main aim is to assist the businessman with applicable laws & regulations compliance and providing support at each & every level to make sure the business stays compliant and growing continuously. For any query, help or feedback you may in touch on [email protected] or Call or what’s-up on 9-555-555-480

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Breaking new ground: How emerging technologies are helping NBFCs evolve

Role of emerging technologies and strategic partnerships for nbfcs.

Non-banking financial companies (NBFCs) have played a pivotal role in meeting the financial needs of individuals and business that have traditionally remained un-served or underserved by banks. But the regulations for NBFCs have become stricter in recent times, the cost of borrowing has increased and NBFCs are focusing on niche markets and personalised products and services. NBFCs are now more focused on developing innovative products and catering to low-income, urban customers in unorganised sectors. In such a scenario, NBFCs are adopting business and operational models powered by technologies that seamlessly facilitate the design, launch, implementation and execution of tailored products and services. Investing in new technologies and strategic partnerships with incumbent financial institutions and FinTechs also allows NBFCs to lower their costs when it comes to increasing their customer base, lowering customer acquisition costs, servicing existing customers or de-risking the portfolio while trying to overcome the increasing formal credit penetration in a growing economy.

New-age NBFCs are using technology more than ever and harnessing partnership ecosystems across the value chain of lead generation, customer onboarding, underwriting, credit/loan disbursement and collection. Artificial intelligence (AI), machine learning (ML) and big data have equipped lenders to measure individual customer insights and build alternative credit scoring models. Mobile and smartphone penetration has enabled NBFCs to connect with customers having low incomes, who can use their mobiles devices throughout the lending cycle of application, engagement, e-KYC and e-signature for disbursements. Robotic process automation (RPA) has enabled streamlining of operational workflows, increasing productivity, accuracy and cost savings. NBFCs are also experimenting and beta testing with distributed ledger technologies for various use cases such as e-KYC, data exchange, loan disbursement and collection and cyber security. And application programming interfaces (APIs) are being built and tested for robust connected ecosystems of various institutions and stakeholders.

Technologies defining a new paradigm for FinTechs and NBFC

FinTechs have been creating a strong buzz across value chains in the Indian financial space. They have also become a part of the Indian government’s mission of financial inclusion for the last few years. Because of its vast potential to disrupt the current and traditional banking system, the FinTech space is now gaining traction in the areas of lending, asset management, deposits and credit system. Present-day FinTech companies are efficiently making use of new-age technologies to overcome challenges and build products and services such as last mile reach and delivery, alternative credit models, fraud detection, regulatory compliance, enterprise automation for accounting, treasury and reconciliation for traditional NBFCs.

  • AI, ML and RPA

Traditionally, lenders have adopted a ‘one size fits all’ approach, evaluating all types of customers against a single credit policy, resulting in the exclusion of a large population of creditworthy customers. With FinTechs adopting and building models on AI combined with ML and advanced analytics, NBFC lenders can adopt a personalised approach to underwriting by incorporating segment-definitive guidelines, empowered by alternative data sources, and apply scorecard-based credit decisions. The approach should help broaden the customer base, allowing sales teams to target a large pool of prospective customers and offer relevant products, as per their credit scores. 

Some NBFCs are moving forward in testing and deploying solutions in collaboration with FinTech software as a service (SaaS), to automate back-end and middleware software applications, which shall make the origination and underwriting process swift, structured and transparent.

The technology-driven business model of NBFCs, which aims to reduce dependency on manual tasks and is built on the capabilities of RPA, leads to wider inclusion, cost-effectiveness, prowess in credit quality and a quicker turnaround time than traditional lending models of banks. Rather than having key resources scan pages of documentation to assess creditworthiness and risks involved in lending to an individual, technologies like RPA can enable such resources to focus on core business needs.

Technologies like AI and RPA can also aid NBFCs with on-the-spot decision making. Technologically advanced NBFCs can transform the manual, time-consuming, human judgement-based underwriting process to provide instant, real-time approvals. The transformation shall benefit NBFCs’ lenders differentiate from fellow players and traditional banks, improve customer experience, ensure uniform application of credit policies and reduce costs. 

AI and ML can also help in continuous evaluation of the underwriting and risks model. A periodic re-evaluation helps determine the efficiency and effectiveness (e.g. service delivery, risk management, cost efficiency) in dynamic scenarios, and therefore, determines remediation steps to improve performance. 

Advanced analytics and AI can power NBFCs with robust collections of payments and monitoring decisions. NBFCs have relied on customer account balances and credit scores to prioritise non-performing and delinquent accounts and formulate strategies for collections. But with the next level of growth slated to come from accounts with little or no credit history, NBFCs would need to leverage wider data sets and big data processing ability to derive and synthesise insights from existing and previously used data sets of non-performing or delinquent accounts, by looking at large sets of information.

Case in point

The NBFC arm of a large conglomerate was looking to scale the business, bring in innovation, create differentiation and drive real value for its stakeholders.

It is now leveraging AI, RPA and advanced analytics to create simpler processes, minimise documentation and strengthen customer delivery systems. To strengthen its position in the ecosystem, the NBFC major has built partnerships with FinTech companies specialising in AI and alternative credit scoring.

Capitalising on the surge of chatbots, the NBFC recently unveiled a first-of-its-kind voice-powered chatbot embedded within its mobile app. Powered by AI, the chatbot is designed to verbally assist a customer’s personal loan journey, from checking eligibility to approval and disbursal.

Combining shared databases and cryptography, blockchain technology allows multiple parties from varying geographical locations and not known to each other to have simultaneous access to a constantly updated digital ledger that cannot be altered.

Blockchain technology could help NBFCs by dramatically reducing onboarding and processing costs. NBFCs are keen to reduce transaction costs and the amount of paper that they process and are working in tandem with technology vendors, financial institutions and FinTechs to implement blockchain technology to make their process increasingly efficient, secure, profitable and valuable.

A leading Indian NBFC is said to be using blockchain technology for services like travel insurance and settling claims.

To reduce fraud and improve access to credit, the ability of NBFCs to effortlessly retrieve transaction data from a borrowers’ bank account will be the foundation for future business models. With most of this data already available, it would be easier for prospective NBFCs’ lenders to get it directly from banks and other financial institutions through APIs, as against relying on intermediaries. This would make data acquisition seamless and decrease operational costs, which further can be passed on to consumers. The success of a credit risk system like this depends on the number of institutions involved and how much data is shared among them, which can be built and harnessed on frameworks of open banking and APIs. 

Getting open API access to user data from consumer and business entities such as e-commerce, mobility and delivery marketplaces, telecom companies, banking and government data such as GST return filings shall allow lenders to validate the legitimacy of invoices – accounts receivables and payables, income and expense reports, receipts, purchase orders, etc., and cross-check business income from the financials. This will help NBFCs to strengthen their decision making and approve and disburse loans effectively.

Many NBFCs, along with banks and the RBI, are working on API frameworks and policies to build an ecosystem on e-KYC and anti-money laundering (AML) to verify identities and run background and safeguard checks.

Strategic partnership models between FinTechs and NBFCs

The FinTech sector is working speedily with cutting-edge technologies, to ease borrowing for customers and solve the limitations of the banking and NBFC sectors. Banks and NBFCs are also changing their mode of operations, but at a much slower pace due to their legacy infrastructure, technologies used, frameworks, approval processes and tight-knit integration across business and technological value chains.

This does not mean that banking institutions and NBFCs are not innovating. The challenge for banks and NBFCs is to identify which ideas to actively pursue to embed capital and technology. The complexity, scale and siloed nature of banks restricts them from doing all this effectively.

Given the pace of change and customer expectations, the common trait among NBFCs is that they rightly understand that they have a better chance of succeeding by collaborating and seeking strategic partnerships with new-age FinTechs.

Traditional NBFCs have an inherent advantage which FinTech companies don’t. Similarly, FinTech companies have agility and technology, which acts as a great equaliser. We explore below the strategic partnership and innovation models adopted by banking institutions, NBFCs and FinTechs for going to market.

  • Build in-house
  • Collaboration
  • Joint FinTech programmes

Environment

  • In some cases, NBFCs aim to innovate internally, by building integrated solutions within their own innovation centres.
  • They have been slow to innovate, given the complexity of their businesses and a strict regulatory and compliance environment
  • Examples of innovation range from robo-advisors to a suite of e-lending products
  • Exclusivity
  • Autonomy on capital and resource allocation
  • Better control on technology, talent and resources
  • Challenging traditional structures and legacy systems
  • Expensive to develop technology, maintain technology and hire specialists 
  • Lack of in-house talent 
  • Increased time to market

Banks enter into various types of arrangements with FinTech companies: 

  • Utilising products or platforms developed by FinTechs (e.g. a NBFC teaming up with a  FinTech to offer alternate credit scoring, claims management or investment management services) 
  • Collaborating as a network to develop and test new technologies and solutions 
  • Referral arrangements, primarily in the lending space, where an NBFC might refer a small business that falls outside the bank’s risk appetite to a lending FinTech  
  • Joint ventures or co-created services (e.g. an NBFC partnering with a FinTech firm to launch a marketplace)
  • Growth – acquiring new customers without significant time and resource investment
  • Benefits from cutting-edge technology of FinTechs
  • Addresses lack of in-house talent and innovative culture
  • Finding a strategic partner and synergies
  • Return on investment (ROI) of partnership
  • Data security and privacy risks
  • Cultural integration 
  • Not always an exclusive relationship

Many NBFCs have their own venture capital funds and investment funds to encourage the development of FinTech start-ups and to invest in or acquire new companies with relevant offerings

  • Gains early access to innovative solutions
  • Potential capital gains from early access investments through IPO or exits
  • Right valuation can be challenging
  • Monetisation of investment (liquidity)

Acquiring a FinTech company can increase an NBFCs’ digital footprint and act as a shortcut to development of new technology

  • Rapid route into new markets
  • Fast delivery/go-to market
  • Exclusivity 
  • New customers at low cost, opportunity to cross sell products
  • Access to talent and innovative culture
  • Integration – operational, financial, technological and cultural
  • Integrating new solutions into existing systems could accelerate costs
  • Collaborative role with other banks/NBFCs alongside programme participants (e.g. venture capitals, government agencies, programme managers)
  • Flexible to tailor staff’s level of involvement according to resource capability
  • Cost shared with other parties
  • Mentorship, programme sponsorship opportunities that provide enhanced FinTech network
  • Limited branding opportunities
  • Potentially low financial ROI if small minority stakes are shared with others

Future of NBFCs

Adopting technological innovations across value chains will aid optimisation of resources and processes, reduce turnaround time, facilitate intuitive and automated decision making and ensure accessibility of credit/loans for customers at rates tailored to their soci0economic profile. This would give NBFCs a great leverage over traditional banking systems and drive maximum possible growth. The success of NBFCs or FinTech companies is largely dependent on their ability to make the best use of technology, human capital and strategic partnerships. NBFCs have a large base of customers and FinTech companies have the right technological support; together, they can form a mutually beneficial relationship to amplify the processes of helping customers secure credit/loans.

Collaborating with FinTechs would give NBFCs the opportunity to increase revenue and provide more services without necessarily taking on additional risks or staff and while providing a more advanced customer experience. At the same time, FinTechs get access to a loyal customer base and the opportunity to maximise the experience of extensive financial services while navigating the regulatory environment.

With inputs from Avneesh Singh Narang and Raghav Aggarwal.

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  • NBFCs in the post-Covid-19 era: Business model to drive fee income

Liquidity crisis, increased asset quality stress and Covid-19 has made NBFCs, once darlings for investors, to reimagine their business models. A marketplace driven platform model can redefine the NBFCs by leveraging their strengths – customer base, distribution reach and collaboration with varied ecosystems.

nbfc business model presentation

  • Published On Jul 14, 2020 at 09:11 AM IST

By Siddhartha K Ghosh Business landscape has changed across sectors and the same fallout has impacted NBFCs too. Even pre Covid-19, liquidity crunch forced NBFCs to take a leap into diversification and find other sources of income. Core business of loans and advances, credit facilities were further shrinking due to liquidity tightening. Increasing the fee for same set of services as an alternative to fill up the loss can only be the quick fix but cannot hold a candle to past trends of profitability. As a jumping-off point from being an underwriter for various type of loans - Personal Loans, Car, Home or other assets etc., NBFCs can bank upon their strengths of existing customer base, distribution capability and consumer understanding and move towards alternate business models hinged upon distribution. Advt Trending financial distribution companies which earlier dealt with single product or service, later kept on adding other products and services and continued to grow. An example would be of an online platform which started with selling insurance to customers and then later extending other services like Bank FD’s, Mutual funds, investment plans etc. This required expanding on the compliance dimension by taking the right regulatory approval and corporate structuring. The income generated also changed from single product fee-based earning to multi-product sourcing and later servicing fees. Few examples of such companies which have diversified for good are Zerodha, 5paisa, policy bazaar etc. Globally financial services distribution companies have embarked on various initiatives to increase their distribution capabilities. The evolution of distribution companies to marketplaces started from simple comparison sites to lead generator to broker to product provider, has continued over the decades. Given financial services deals with complex products and services, the evolution has been slower. Today brokers and marketplaces are converging towards product providers to own more in a customer transaction lifecycle e.g. an insurance policy comparison would like to go beyond lead generation fee and would like to enable health check-up, play a role in policy renewal or claims settlement. On the other hand, product providers like NBFCs can consider expanding into marketplace driven platforms to encompass a customer with multitude of products and services. Advt This journey is now fast-tracked post Covid-19 as that is key for differentiating in the new normal. The new services-based fee income is the path NBFCs should traverse than increasing the fee for same services. The new fee regime is not for managing the inefficiencies, which was the norm till date, but to offer value added services to the client base. As an example, fee in post Covid-19 era is not to handle cash of the client but to eliminate cash transaction altogether. Developing a marketplace driven platform Core strength of NBFCs include customer base, strong distribution and servicing reach, higher risk appetite, flexible business model, non-physical office-based points of presence, faster scale-up and scale-down capability and lesser technology debt. The NBFCs have also been fast in adopting newer technology led processes e.g. API based validation of KYC documents, eSignature, eKYC, GPS based address filling, video based customer engagement, IOT (Internet of Things) based data collection for connected cars, construction equipment, trucks and truck tyres, behavioural analytics based on alternate sources of data etc. Advt Leveraging the above, product providers like NBFCs can consider expanding into marketplace driven platforms to encompass a customer with multitude of products and services through the following operating dimensions:

  • Focus on customer behaviour change – Retaining and nurturing existing client base is key to reduce cost of acquisition, increase profitability, support client needs in trying times, better enhance life-time value and loyalty. However, customer retention can focus on changing customer behaviour by moving from high-cost channels to low-cost channels, high touch to low touch even if the frequency increases many fold e.g. move customers from physical repayments by cheques to micro-electronic payments based on daily earnings
  • Product provisioning by focusing on core-strength – leverage understanding of customer behaviour and customer segment for product fitment and to enable meaningful pricing driven by partners
  • Expand into allied products from own bouquet or from partners – leverage loyal client base, become one-stop service provider for clients, move to need-servicing paradigm from product provisioning • Expand into allied service offerings – target merchants, small and medium enterprises with services like tax services, and B2B services like business consulting
  • Expand into value chain of banks, insurance companies, credit card companies by offering value added services than remain at the sourcing end of the spectrum - Credit worthiness review, document validation through electric intervention, Income/ residence/ telephonic verification as a service through photogrammetry and video, collections as a service etc. and further providing a community engagement through forums could blaze a trail in the current NBFC portal offerings
  • Leverage trusted brand value - Digital mode of transactions combined with transparent dealings and providing multiple choices has the power to entice customers into purchasing through an existing trusted brand.
  • Focus on different models of fee – sourcing fee, risk management fee, co-origination fee, commission vs. service fee, renewal fee, advertising fee while keeping the customer focus and independence at the core
  • Do not limit to sell only group company products – demonstrating independence and allowing choice to end customers is a key aspect to bring back clients after initial buzz. Additionally, the customers must get distinct value beyond the standard offerings from the parent NBFC
  • Do not expand the parental technology landscape but refresh to compete with FinTechs – Expanding the existing legacy technology only enables front end make-over without delivering the user-experience promised by the new platform New age technology not only adds to user experience but, if implemented properly, can enable near zero-operations. Better cost-toincome ratio is a must-have competitive advantage in the post-Covid-19 era.
  • Do not remain as mono-line but become multi-line as volumes are key to success in marketplace – Expansion from mono-line to multi-line business model is essential to increase repeat client base. Additionally, with convergence of product purchase, product financing, product insurance, product delivery and innovative payment – it is important to own the end to end journey
  • Do not limit focus only on the customer side – Partner ecosystem development including empowerment, transparent pricing, technology support, credit extension, dissemination of knowledge, training enables adoption and usage. There are multiple NBFCs planning to build marketplace driven platform and it is important to have loyal ecosystem partners to thrive in the long run
  • Updated On Jul 14, 2020 at 09:11 AM IST

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NBFC seminar 2022

Nbfcs: gearing up for growth, key messages.

  • Strong balance sheets with higher provisioning and lower leverage to support growth
  • Asset quality concerns also receding with continued improvement in key metrics
  • Cost of borrowings for NBFCs stated to rise amidst the rising interest rate scenario by 100-120 bps in fiscal 2023
  • Unsecured loans, used vehicles and MSME segments expected to propel growth
  • While traditional segments will also post growth, it will be at a slower pace compared with pre-pandemic levels
  • Business model gravitating towards partnerships

NBFCs: Non-banking financial companies; AUM: Asset under management; MSME: Micro, small and medium enterprise Note: NBFCs include housing finance companies (HFCs), but exclude government-owned NBFCs.

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nbfc business model presentation

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Nonbank Financial Institutions: What They Are and How They Work

James Chen, CMT is an expert trader, investment adviser, and global market strategist.

nbfc business model presentation

What Are Nonbank Financial Companies?

Nonbank financial companies (NBFCs), also known as nonbank financial institutions (NBFIs), are financial institutions that offer various banking services but do not have a banking license. Generally, these institutions are not allowed to take traditional  demand deposits —readily available funds, such as those in checking or savings accounts—from the public. This limitation keeps them outside the scope of conventional  oversight from federal and state financial regulators .

Nonbank financial companies fall under the oversight of the Dodd-Frank Wall Street Reform and Consumer Protection Act , which describes them as companies "predominantly engaged in a financial activity" when more than 85% of their consolidated annual gross revenues or consolidated assets are financial in nature. Examples of NBFCs include investment banks, mortgage lenders, money market funds, insurance companies, hedge funds, private equity funds, and P2P lenders.

Key Takeaways

  • Nonbank financial companies (NBFCs), also known as nonbank financial institutions (NBFIs) are entities that provide certain bank-like financial services but do not hold a banking license.
  • NBFCs are not subject to the banking regulations and oversight by federal and state authorities adhered to by traditional banks.
  • Investment banks, mortgage lenders, money market funds, insurance companies, hedge funds, private equity funds, and P2P lenders are all examples of NBFCs.
  • Since the Great Recession, NBFCs have proliferated in number and type, playing a key role in meeting the credit demand unmet by traditional banks.

Investopedia / Michela Buttignol

Understanding NBFCs

NBFCs can offer services such as loans and credit facilities, currency exchange, retirement planning, money markets,  underwriting , and merger activities.

The Dodd-Frank Wall Street Reform and Consumer Protection Act defines three types of nonbank financial companies: foreign nonbank financial companies, U.S. nonbank financial companies, and U.S. nonbank financial companies supervised by the Federal Reserve Board of Governors.

Foreign nonbank financial companies

Foreign nonbank financial companies are incorporated or organized outside the U.S. and are predominantly engaged in financial activities such as those listed above. Foreign nonbanks may or may not have branches in the United States.

U.S. nonbank financial companies

U.S. nonbank financial companies , like their foreign nonbank counterparts, are predominantly engaged in nonbank financial activities but have been incorporated or organized in the United States. U.S. nonbanks are restricted from serving as Farm Credit System institutions, national securities exchanges, or any one of several other types of financial institutions.

U.S. nonbank financial companies supervised by the Board of Governors

The main difference between these nonbank financial companies and others is that they fall under the supervision of the Federal Reserve Board of Governors. This is based on a determination by the Board that financial distress or the “nature, scope, size, scale, concentration, interconnectedness, or mix of activities” at these institutions could threaten the financial stability of the United States.

Shadow Banks and the 2008 Financial Crisis

NBFCs existed long before the Dodd-Frank Act. In 2007, they were given the moniker " shadow banks " by economist Paul McCulley, at the time the managing director of  Pacific Investment Management Company LLC (PIMCO) , to describe the expanding matrix of institutions contributing to the then-current easy-money lending environment—which in turn led to the subprime mortgage meltdown and the subsequent 2008 financial crisis.

Although the term sounds somewhat sinister, many well-known brokerages and investment firms were engaging in shadow-banking activity. Investment bankers Lehman Brothers and Bear Stearns were two of the most well-known NBFCs at the center of the 2008 crisis.

As a result of the ensuing financial crisis, traditional banks found themselves under closer regulatory scrutiny, which led to a prolonged contraction in their lending activities. As the authorities tightened up on the banks, the banks, in turn, tightened up on loan or credit applicants.

The more stringent requirements gave rise to more people needing other funding sources—and hence, the growth of nonbank institutions that were able to operate outside the constraints of banking regulations. In short, in the decade following the financial crisis of 2007-08, NBFCs proliferated in large numbers and varying types, playing a key role in meeting the credit demand unmet by traditional banks.

NBFC Controversy

Advocates of NBFCs argue that these institutions play an important role in meeting the rising demand for credit, loans, and other financial services. Customers include both businesses and individuals—especially those who might have trouble qualifying under the more stringent standards set by traditional banks.

Not only do NBFCs provide alternate sources of credit, proponents say, they also offer more efficient ones. NBFCs cut out the intermediary—the role banks often play—to let clients deal with them directly, lowering costs, fees, and rates, in a process called disintermediation . Providing financing and credit is important to keep the money supply liquid and the economy working well.

Alternate source of funding and credit

Direct contact with clients, eliminating intermediaries

High yields for investors

Liquidity for the financial system

Less regulated than banks

Non-transparent operations

Systemic risk to financial system, economy

Even so, critics are troubled by NBFCs' lack of accountability to regulators and their ability to operate outside the customary banking rules and regulations. In some cases, they may face oversight by other authorities— such as the Federal Trade Commission (FTC), the Securities and Exchange Commission (SEC) if they're public companies, or the Financial Industry Regulatory Authority (FINRA) if they're brokerages. However, in other cases, they may be able to operate with a lack of transparency.

All of this could put an increasing strain on the financial system. NBFCs were at the epicenter of the 2008 financial crisis that led to the Great Recession. Critics point out that they have increased in numbers since then, and therefore represent a greater risk than ever before.

Real-World Example of NBFCs

Entities ranging from mortgage provider Quicken Loans to financial services firm Fidelity Investments qualify as NBFCs. However, the fastest-growing segment of the non-bank lending sector has been in peer-to-peer (P2P) lending.

The growth of P2P lending has been facilitated by the power of social networking, which brings like-minded people from all over the world together. P2P lending websites, such as LendingClub and Prosper, are designed to connect prospective borrowers with investors willing to invest their money in loans that can generate high yields.

P2P borrowers tend to be individuals who could not otherwise qualify for a traditional bank loan or who prefer to do business with non-banks. Investors have the opportunity to build a diversified portfolio of loans by investing small sums across a range of borrowers.

Although P2P lending only represents a small fraction of the total loans issued in the United States, Precedence Research reported that the peer to peer lending market had a size of $18.88 billion in 2022. This market size is expected to continuously grow over the next decade.

What Are Examples of Nonbank Financial Companies?

There are many types of NBFC. Some of the most familiar are:

  • Casinos and card clubs
  • Securities and commodities firms (e.g., brokers/dealers, investment advisers, mutual funds, hedge funds, or commodity traders)
  • Money services businesses (MSB)
  • Insurance companies
  • Loan or finance companies
  • Operators of credit card systems

What Is the Difference Between NBFCs and NBFIs?

Generally, none. These are alternative names for the same type of company.

Why Are NBFCs Called Shadow Banks?

NBFCs are often called shadow banks as they function a lot like banks but with fewer regulatory controls. Barring a few, they cannot accept deposits from people and so raise money from bonds or borrow from banks.

The Bottom Line

Nonbank financial companies (NBFCs), also known as nonbank financial institutions (NBFIs), are entities that provide similar services to a bank but do not hold a banking license. As a result, they are subject to different regulations than banks, and in many regards are less regulated than banks. There are many NBFCs. Investment banks, mortgage lenders, money market funds, insurance companies, hedge funds, private equity funds, and P2P lenders are all examples of NBFCs.

Since the Great Recession, NBFCs have proliferated in number and type, playing a key role in meeting the credit demand unmet by traditional banks. Their critics say that they pose a risk to the US economy; their proponents say they offer a valuable, alternative source of credit and funding.

U.S. Congress. " Dodd-Frank Wall Street Reform and Consumer Protection Act ." Pages 1391-1392.

U.S. Congress. " Dodd-Frank Wall Street Reform and Consumer Protection Act ." Pages 1391-1392, 1398.

Federal Reserve Bank of Kansas City. " Housing, Housing Finance, and Monetary Policy: General Discussion: Housing and Monetary Policy ." Page 485.

International Monetary Fund. " Shadow Banks: Out of the Eyes of Regulators ."

National Bureau of Economic Research. " Oh, How the Mighty Have Fallen: The Bank Failures and Near Failures That Started America’s Greatest Financial Panics ."

Precedence Research. " Peer to Peer (P2P) Lending Market (by Type: Consumer Lending, Business Lending; by End User: Consumer Credit Loans, Small Business Loans, Student Loans, Real Estate Loans; by Business Model: Marketplace Lending, Traditional Lending) – Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023 – 2032 ."

  • A Primer on Important U.S. Banking Laws 1 of 29
  • Dodd-Frank Act: What It Does, Major Components, and Criticisms 2 of 29
  • Major Regulations Following the 2008 Financial Crisis 3 of 29
  • Too Big to Fail: Definition, History, and Reforms 4 of 29
  • Volcker Rule: Definition, Purpose, How It Works, and Criticism 5 of 29
  • Understanding the Basel III International Regulations 6 of 29
  • What Is Basel I? Definition, History, Benefits, and Criticism 7 of 29
  • Basel II: Definition, Purpose, Regulatory Reforms 8 of 29
  • Basel III: What It Is, Capital Requirements, and Implementation 9 of 29
  • What Basel IV Means for U.S. Banks 10 of 29
  • A Brief History of U.S. Banking Regulation 11 of 29
  • The Evolution of Banking Over Time 12 of 29
  • How the Banking Sector Impacts Our Economy 13 of 29
  • What Agencies Oversee U.S. Financial Institutions? 14 of 29
  • Dual Banking System: Meaning, History, Pros and Cons 15 of 29
  • Glass-Steagall Act of 1933: Definition, Effects, and Repeal 16 of 29
  • Bancassurance: Definition, How It Works, Pros & Cons 17 of 29
  • Electronic Fund Transfer Act (EFTA): Definition and Requirements 18 of 29
  • Bank Secrecy Act (BSA): Definition, Purpose, and Effects 19 of 29
  • How Banking Works, Types of Banks, and How To Choose the Best Bank for You 20 of 29
  • Chartered Bank: Explanation, History and FAQs 21 of 29
  • Nonbank Financial Institutions: What They Are and How They Work 22 of 29
  • Shadow Banking System: Definition, Examples, and How It Works 23 of 29
  • Islamic Banking and Finance Definition: History and Example 24 of 29
  • What Is Regulation E in Electronic Fund Transfers (EFTs)? 25 of 29
  • What Is Regulation CC? Definition, Purpose and How It Works 26 of 29
  • Regulation DD: What it is, How it Works, FAQ 27 of 29
  • Regulation W: Definition in Banking and When It Applies 28 of 29
  • Deregulation: Definition, History, Effects, and Purpose 29 of 29

nbfc business model presentation

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integrated nbfc business planning

A Scalable And Profitable Model- Nbfc Business Plan

Jun 06, 2022

200 likes | 202 Views

The business plan is crucial since it lays out the company's strategy. It aids in the achievement of the company's short- and long-term objectives. It expresses the company's vision, mission, and financial objectives clearly. It also aids in prioritising actions that require regular review by the company's senior management. An executive summary, vision, mission, business structure, promoter background, market size, growth aspect, product & service, sales & marketing, and other items are included in an NBFC business plan.<br>

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INTEGRATED NBFC Business PLANNING

Table of contents We can help 11 The path to maturity 9 Five traits of effective Five traits of effective purpose-led integrated business planning 2

Business planning today In current dynamic environment every organization and business unit face uncertainty on every step. These dynamics include rapid innovation, technology, change in consumer taste, political and economic uncertainty, ever evolving employer employee relationship, vigilant stakeholders etc. Among all these uncertainties, it is important that while figuring out an effective business plan following factors are considered: Digitalization: In this a digital age, technology plays an important role, right form conception of an idea, to its implementation, every day to day activity can be made easy with the help of technology. Dynamic Work culture: with technical advancement and changes in employer’s expectations, the work culture is evolving. Definition of office boundaries has expanded. Marketplace Expansion: With changes in trading policies and economic development new market possibilities are emerging day by day. It is important to identify such emerging markets. Environmental Factors: Along with technical changes, environmental factors also effect the organizations at large. These factors include climate change, population growth, economic growth, technical innovations etc.

Business planning today Price Fluctuation: As a result of demand and supply forces in the economic market, the prices of products vary on regular basis. For some products like petroleum this change is very unpredictable. All these factors contribute to a dynamic business environment. Thus, it becomes very important to incorporate a strategic business plan with a view to incorporate features to adapt to all such changes. In current market scenario if one has a conventional approach then the business plans will plans will not be sophisticated and flexible enough to adapt to any change be sophisticated and flexible enough adapt change in the business environment. This will result in number of challenges and the organization will be continuously in the process of catching up. This defeats the purpose of a business plan, i.e. to come up with a detailed plan for the future.

Challenges in business planning processes Root causes Challenges No sync between Organizational purposeand Business plans: Planning process is concentrated in thehands of higher management. In order to focus on ‘how’, the big questionof ‘why’ is ignored. The fact the planning is an ongoing processin ignored. With main focus on strategizing, key elements like planning, budgeting and forecasting are often not synced to the strategic plan. Ambiguity implementation and governance of plans. relating to Planning is not in sync with the resources. Business plans might lack long-range planning. And integration of factors like capital budgeting, operations plans, or management reporting can be ignored. With changes in key economic and business conditions, plans are done away with instead of refining them to adapt to such changes: Planning is done on management level, concentrates on reporting and lacks redressalsystem. Due to concentrated think tank, some business segments can be ignored. Market dynamics can render a plan ineffective. Plans might not be effective in real- time scenario Business available financial numbers. Which might not be feasible with actual situation. plans are based on

Challenges in business planning processes Business actionable implemented on day to day business actions due to lack of insight: plan might not be be Financial targets might not be fact based. and cannot Assumptions made while planning might not be consistent with actual scenario. Plans can be conceptual and lack baseto be credible. The practicality of business planning might be overshadowed by hunches. Business plan might look good on paper and be hard and unrealistic for implementation.

Five integrated business planning traits of effective purpose-led Purpose-led overview integrated business planning process With the changing dynamics of economic and business conditions, businesses might discourage long-term planning. But in times like these, there is a need for a grounded and purposeful business plan which focuses on organization’s objective. An optimal integrated business plan must have some important traits Organization’s purpose Business Cycle Actionable insights Strategic initiatives Drivers  Refine  Replac e  Cancel

In order to become a high performing organizations an optimal integrated business plan must have following important traits Integrate organization’s purpose in the plan The strategic business plans can be optimized by making sure that the organization’s purpose is integrated in it. This will ensure the focused approach and help avoid any confusion. 1 Plan in sync with business management cycle 2 In order to ensure perfect integration of business plan with the business management cycle, the plan must include components like, long-term planning, operational plans, periodicalanalysis and forecasting. Planning must be based on financials to facilitate progress evaluation 3 The business plan must be developed based on any previously available financial data. And expected outcomes metrics must also be defined. This will facilitate the performanceevaluation through comparison. Strategy performance levers must be linked with business Performance drivers play a very crucial role. These drivers ensure that business performance is in accordance with the establishedstandardsin the strategic business plans. 4 Strategic plans must be refined with any changes not replaced. 5 In order to not break the momentum developed while execution of the business plan it must be refined to adapt to any significant changes rather than developing new or competingprojects

Trait 1: Integrate organization’s purpose in the plan One can achieve this through: The strategic business plans can be optimized by making sure that the organization’s purpose is integrated in it. This will ensure the focused approach and help avoid any confusion. This means that the business plan as well as all the strategies adapted to achieve them must be in alignment with the main object of the organization. Ensuring that business planning at the C-suite level is underpinned by a discussion around purpose, and by translating strategy into measurable financial, commercial, and stakeholder outcomes INVESTMENT DECISIONS MUST BE BASED ON ORGANIZATION’S PURPOSE, THIS WILL HELP IN PROPER ALLOCATION AVAILABLE RESOURCES. Providing a framework for investing in resources and people The ultimate objective of the business plan should be to develop a work culture in organization which results in value creation. For this the workforce must be looped in to the organizational plans and their roles in achieving them. This helps integrate long term business plan in the day to day practices and with time resonates with the stakeholders too. Defining the business case for supporting major initiatives and establishing “purpose” metrics to evaluatethe ROI of these initiatives Balancing long-term organizational purpose with short-termperformance This integration of purpose in business planning results in reduced risks, gives competitive This integration of purpose in business planning results in reduced risks, gives competitive advantage and improved performance. This stabilized and growth oriented model helps in attracting and luring customers. The purpose of the organization must be in sync with the stakeholder’s vision of the company. If this part is ignored then it might lead to problems in business planning process. Common mistakes Many a time’s management is so focused on the strategy implementation part, that employee’s interest takes a backseat. The healthy way is to fully engage the workforceto achieve powerful results. All the developments relating to strategic business plans are restricted to the senior management level, which beats the purpose. The whole organization must be looped into the new initiative Many confuse purpose with organization’s mission and vision, while in actual purpose goes beyond the mission and acts as a unifying principle

Trait management cycle 2: Plan in sync with business In order to ensure perfect integration of business plan with the business management cycle, the plan must include components like, long-term planning, operational plans, periodical analysis and forecasting. In order to sync the plan with the business management cycle, the organizations adopt various practices like: The strategy along with long-term plans, budgeting, forecasting, reporting etc. should be integrated with common set of drivers in the enterprise. For effective decision making, they must engage in scenario testing, comparisons and then making informed strategic decisions. Identifying opportunities or any changes in conditions and conducting strategic planning. Value drivers to be used to set targets as well as to improve visibility of organization performance. Business planning process Planning Planning Strategy and long range Strategy and long-range plan Annual plan Assumptions and targets Operational plan Strategic insight and direction Strategic scenario testing Capital and resourceallocation Long-range business and financial plan Fact-based targets Strategy linkage Business tactics Detailed drivers and dimensions Planning assumptions Business and financial targets identified in terms of drivers and outcome metrics Financial plan Quantification of operational plan Execution and decision support Forecast Business reporting and analysis Action planning/ forecasting Communicat e Reporting Analysis Course correct as needed Progress vs. outcome metrics and drivers Identify performance gaps Develop rolling forecast Driver-based analysis of variance Exception basis: update operational and financial plan

Trait 3: Planning must be based on financials to facilitate progress evaluation Common mistakes These metrics are basically tools to convert strategic plans objectives and helps in developing model to achieve desired results. Even incentive can be set up to encourage desired behavior and results from across the organization. into tangible Instead of focusing on the business plan intent, number of irrelevant metrics are allocated to the executive. As a result main focus is lost The business plan must be developed based on any previously financial data. And expected outcomes metrics must also be defined. This will facilitate the performance through comparison. available Metric objectives are communicated down the line without providing proper context or how executives can influence the same. evaluation Proper focus and efforts not put in to set target metrics and formulating actionable plans to achieve them Seasoned organizations develop a driver tree to support these outcome metrics. This driver tree consist of internal as well as external drivers Lack of transparency in the system, as a result the executives cannot measure and analyze the executives cannot measure and analyze the actual performance While defining the outcome metrics, it is critical to ensure that each outcome metric: Limited decision rights provided to the executives restricting the way they can influence the metrics No appropriate benchmark is set for the metric Must be linked to strategy Must be easy to understand and measure Different departments not communicated about shared objectives and this results in lacking performances. Must be based on reliable data They must be high in quality Not planned about the steps to be taken if the KPIs indicate a difference between intended and actual results Management must prioritize them The organizational behavior and Strategy is not exactly linked to the metric and performance indicators. decision must be guided by them They must be tied with actionable drivers

Trait performance levers 4: Strategy must be linked with business Value drivers: Value Drivers bridge the gap between business strategy, operations. Performance drivers play a very crucial role, as they help in evaluating all opportunities and options and how they will contribute to the organization’s purpose. These drivers ensure that business performance is in accordance with the established standards in the strategicbusiness plans. finances and Provides links between targets, operations, initiatives etc. the available Proper analysis ensures fair allocation of resources within the organization Connect strategic initiative decisions taken at management level with the organizational level SAMPLE VALUE DRIVER TREE Outcome Metric First-level drivers Second-level drivers Third-level drivers Price Revenue Volume EBIT Labour cost Expenses Return on average capital employed Material cost Fixed Average Capital employed Current assets Working Capital Current liabilities Common mistakes Lack of data results in incorrect evaluation of value drivers Fail to adjust these value drivers with external changes. Differentvalue drivers are not properlyinter-related With every major target achievement key value driver must be adjusted. Many a times organizationsfail to do that.

A well defined strategic initiative include following critical attributes: A well defined strategic initiative include following critical attributes: In order to not break the momentum developed while business plan it must be refined to adapt to any significant changes rather than developing new or competing projects execution of the Initiative’s owner Stakeholders impacted by it Dependencies The most important part of the business planning process is development of a well thought-out implementation plan. And actual implementation of such plan involves taking strategic These initiatives are the actual projects and activities implemented to attain the desired strategicgoals. The important part is to explicitly allocate the available resources between allocate the available resources between individual initiatives responsibility and create better understanding for it across theorganization. Scope of the initiative Initiative’s link to the strategy and what will be its impact on it. initiatives. developed and The allotted decision making powers How will it mitigate risk or manage it. Budget allocation and set to accountability Drivers and performance indicators linked to it. Common mistakes Required decision making powers not allocated, this blocks flexibility. No focus on prioritizing the critical initiatives, and trying to do everything at once. This results in lack in quality Not figuring out the dependencies of such initiatives, these results in improper execution. Not involving the entire workforce in the initiative execution part, this poses unnecessary pressure to deliver on limited group of people. Failing to alter or modify existing initiatives with respect to changes or adding alternate or overlapping initiatives.

The Mature Approach Following concerns to eb identified to formulate a perfect plan Design level questions Can the plan be integrated with every componentof the organization? Is the plan understood and in sync with the organization’s purpose? clearly articulated, Are documentedand understood? the performance drivers well Is it flexible enough to adapt to changes? Operational level questions What will be the challenges relating to strategy, planning, implementation etc? What will be the size of the team responsible for the implementation of business strategy? Who will be accountable for the successful implementation of the plan? Are we technologically updated to support the required level of planning and analysis? Execution level questions Is the project strong enough and do we have portfolio management skills to execute such strategic initiatives? Will there be any major changes in the organization in the process of implementation of these strategic initiatives like management and communication change to encourage better reporting? How business plan into the business management cycle and convert theoretical plans based operationalplans? to execute the strategic into outcome

Levels of business planning maturity • Only guidance provided in decision-making processes (not integrated). No formal strategy and KPI inclusion Level One Basic • Risk management is not part of it. • Plans are formulated but no dedicated planning team • No comparative analysis done Level Two Developin g • Business plan is not just a guiding force it also includes strategy and performance indicators • Risk assessment forms part of plan Level Three Establishe d d • Extensive plans are formed and integrated end-to-end in the management cycle management cycle • Comparative analysis done and no actions are taken Level Four Advance d • Extensive strategy linked to capital budget, annual plan, forecasting, KPIs, operations plans, and management reporting • Risks assessment and management form part of it. Level Five Leading • Along with extensive planning, strategic planning and scenario analysis are also done. • Comparative analysis done and actions taken to resolve issues Level of involvement Integration with decision- making Process cycle Value- added

Key factors for Effective Plan Most organizations struggle with all five traits of high-performance planning. Here are some ways you can set your organization up for success: 1. Accountability on the part of senior executives to integrate business plan into the business management cycle of the organization. As the plans ask for investments, the stakeholders interest should be primitive in every planning process. 2. 3. Every business planning and management work requires for extra resourcing. To make sure that they are properly implemented explicit focus and monitoring is required. Every plan is based on certain base statistics. In future planning some risks are involved but that does not mean bluffing. The planning should be articulate and evidence based. 4. 5. It is important that while before implementing any strategic plan, the employees are 5. It is important that while before implementing any strategic plan, the employees are looped in the same. It is only after proper understanding of what they are trying to achieve that they can focus on the same and make the decisions as per the context. 6. In the repetitive business cycle it is easy to loose track of the ultimate strategic intent. Thus, periodical operational discussions must be encouraged. The implementation of the strategic plan must not be over complicated; there should be visibility and proper reporting process in system. This will bring clarity and every action in the process to achieve the objectives can be identified. 7. 8. To make sure that the objective is not just financial, it must also integrate strategies, operational plans, employees etc. All the organization’s initiatives or risks taken must be in sync with its strategic objectives. 9. 10. Strategic planning is done keeping in mind the big picture. But, everything must be started with baby steps, here it would be in the form of target setting on every level.

Why Reasons! Choose Enterslice ? Nine Great Get it Right the First Time Get Investors to Notice Funding is a binary event: either you succeed or you fail. If you fail, most investors won’t give you a second chance. the pros and cons of various approaches to business plans. Most investors to return their calls. A majority of our clients secure meetings with potential funders. entrepreneurs can’t get Learn about developing No Salespeople Fully Customized Deal directly with your senior business plan consultant from Day business plan consultant from Day One – not a salesperson who will hand you off to a junior writer. relationships matter, need to know exactly who you’re dealing with. Some business plan writers charge Some business plan writers charge extremely low fees because they have a cookie-cutter, assembly- line approach. You get what you pay for. We work from scratch to represent your unique vision, not somebody else’s. commissioned Personal and you Avoid Costly Mistakes We know what works, and, more importantly, what doesn’t. A single mistake can get render your plan unfundable. We wrote the original and often-cited article on Why Business Plans Don’t Get Funded.

Why Reasons! Choose Enterslice ? Nine Great Save Money - Really! Work With True Experts We’re not cheap, but about half of our clients came to us after a business plan prepared by a less qualified business plan consultant did not work out. Why not get it right the first time and save money? We’ve walked in your shoes and we understand what you’re going through. Many advanced degrees institutions like Harvard,ICAI and CFA, of us have from Develop Strategy Strategy a Winning Ongoing Support We don’t stop when the business plan is complete. We have a talented team ready to help you implement it as well, either on a retained basis as interim members of your founding team or on a project basis, as needed. Most consultants” take whatever you tell them and software. We go much deeper and help develop a viable strategy for success, which we then express in a compelling business plan. so-called “business plan type it into

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  1. NBFC BUSINESS MODEL, business model of nbfc

    Steps for creating an NBFC Business Model. Creating a business model for NBFC is a priority in the success of an NBFC. Below are the requirements for starting an NBFC Business Model: 1. Services Offered- First thing to consider in your NBFC Business Model is to find what services your NBFC will be offering to the consumers.

  2. Non-Banking Financial Corporation (NBFC)

    Nbfc ppt. Nbfc ppt Kapil Chhabra ... CIC-ND-SI is an NBFC carrying on the business of acquisition of shares and securities which satisfies the following conditions: ... • Under this model, IL&FS started financing and developing infrastructure projects, but on the part of government there have been delays in approvals and passing necessary ...

  3. PDF A Study of Nonbanking Financial Companies in India (SAWP 83)

    crunch in the Indian economy. The crisis raises questions about the business model of NBFCs in India, and the role they play alongside banks in the economy. This paper analyzes the evolution of the NBFC sector in India over time and its importance in extending credit, and it discusses the factors that may have contributed to the 2018 crisis.

  4. Nbfc presentation

    Nbfc presentation. 1. PRESENTATION ON Privileged & Confidential. 2. WHAT IS A NON-BANKING FINANCIAL COMPANY (NBFC) A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, engaged in the business of loans and advances, acquisition of shares/ stocks/ bonds/ debentures/ securities issued by Government or local ...

  5. Check List for an NBFC Business Model

    Drafting an effective Business Model for NBFC is crucial for the business purpose and serves the following objectives: It presents information to stakeholders such as prospective investors, financial institutions, funding institutions for generating loan. Motivates the company to achieve its goal.

  6. PDF PwC India

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  7. How emerging technologies are helping NBFCs evolve

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  8. NBFC BUSINESS MODEL, business model of nbfc / Investor Presentation

    Steps for creating an NBFC Business Model. Creating a business model by NBFC is a privilege include the success of an NBFC. Below are the requirements for starting an NBFC Business Model: 1. Services Offered-First thing to consider in your NBFC Business Model belongs into find what services your NBFC will be service to the customers. It is ...

  9. Trend in NBFC Business Model

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  10. NBFCs in the post-Covid-19 era: Business model to drive fee income

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  11. Nbfc ppt

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  12. PDF Chapter 3 Ind AS: Practical perspectives (NBFCs)

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  13. NBFCs: Gearing Up for Growth

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