Poonawalla Fincorp adopts AI to improve customer service and compliance processes

Poonawalla Fincorp Limited, a non-banking financial company backed by the Cyrus Poonawalla Group, has introduced artificial intelligence (AI) tools to support its customer engagement and compliance operations.

The company, which lends to consumers and small businesses, is now using AI to improve how it connects with potential borrowers and how it meets regulatory requirements. The new technology allows the firm to target borrowers more effectively by creating over 100 distinct customer profiles based on digital behaviour. These profiles are regularly updated to help fine-tune marketing strategies and reach the right audience.

Poonawalla Fincorp has launched between 80 and 100 automated campaigns on its website and app. These campaigns aim to re-engage users by sending messages tailored to their location, language, and previous activity. The company has also updated its website, adding services such as a self-service portal, credit score checks, and a referral system using QR codes.

Further changes are expected in the coming months, including around-the-clock chatbot support and a multilingual interface covering five new regional languages. The company also plans to use AI tools to produce more customised content for customers across its platforms.

In addition to marketing, the company has developed an in-house AI system to manage compliance with regulations. The tool reviews updates from the Reserve Bank of India, matches them against internal policies, and flags any necessary changes. At first, the system will work alongside human reviewers to maintain accuracy, but eventually it will also generate detailed compliance reports—cutting down a process that currently takes several days.

Managing Director and CEO Arvind Kapil said the company is using AI not only to keep pace with changing customer needs, but also to ensure fairness and accuracy through continued human oversight.

Poonawalla Fincorp has already brought AI into other parts of its business, including debt recovery, recruitment, auditing, and loan approval.

Last month, the company introduced an AI-based debt management system that analyses customer behaviour and communication patterns. It uses over 100 strategies to guide how customers are contacted, which the company says has helped reduce the time spent on manual work by four to five days.

It has also automated how it assigns recovery agents to customers in default. This process, which used to take several days, can now be completed in under three hours. The system uses machine learning to assess risk more accurately than traditional methods.

Based in Pune, Poonawalla Fincorp says these changes are part of its effort to make lending processes simpler and more responsive, while ensuring regulatory standards are met.