How a distinctive sonic identity added depth and resonance to L&T Finance’s narrative

One of the leading NBFCs in India, L&T Finance, which has its headquarters in Mumbai, maintains a powerful presence in the lending business sector fulfilling the diversified capitalization requirements of underserved and served consumers, offering two wheeler loans, personal loans, rural business loans, home loans, SME loans, farm loans. L&T finance is dedicated to the provision of personalised financial solutions meeting the distinctive needs of its customers. It emphasises on customer-focus, novelty and being a reliable partner in the financial journey of the customer. Its four pillars are integrity, ambition, pride and discipline.

In conversation with Adgully, Kavita Jagtiani, Chief Marketing Officer, L&T Finance, speaks about the company’s performance in FY24, L & T Finance has made instrumental progress towards the enhancement of market presence and brand perceptibility. An important rebranding strategy has been the shift from L & T Financial Services to L & T Finance. It thoughtfully implemented IMC campaigns for elevating product awareness and brand reverberance across the nation. It has also made a participation in reputed events such as GFF, partnering with ET Now Global Business Summit as NBFC Fintech Partner, becoming a major player in the fintech space. She shared: “Leveraging customer testimonials and developing a distinctive sonic identity added depth and resonance to the brand's narrative, culminating in a comprehensive strategy to amplify visibility and engagement.”

What were the marketing campaigns and initiatives launched by L&T Finance in FY24?

We have made significant strides in FY24 towards enhancing brand visibility and market presence for L&T Finance. The transition from L&T Financial Services to L&T Finance marked a pivotal rebranding strategy. During the year we strategically deployed Integrated Marketing Communication (IMC) campaigns to elevate brand resonance and product awareness across cities nationwide. Furthermore, we have been investing regularly to get our financials published in leading newspapers, thus strengthening transparency, and driving investor confidence.

The Company has actively participated in prestigious events like the Global Fintech Festival (GFF) and partnered with The Times Group's ET Now Global Business Summit as the NBFC Fintech Partner, positioning the Company as a leading player in the fintech space. We also drove various brand awareness campaigns, including partnerships with Disney+ Hotstar during sports events like the Cricket World Cup and Asia Cup, thus significantly amplifying our visibility.

Our extensive rural outreach across India through wall branding exercises and participation across Krishi Darshan Expo along with specialised campaigns like the Two-Wheeler Loan Festive Campaign across 15 cities including Mumbai & Kolkata helped elevate product visibility and appeal. Leveraging customer testimonials and developing a distinctive sonic identity added depth and resonance to the brand's narrative, culminating in a comprehensive strategy to amplify visibility and engagement.

What are the USPs of L&T Finance?

L&T Finance offers a diverse suite of products, ranging from Rural Group Loans & Microfinance, Farm Equipment Finance, Two-Wheeler Finance (including Two-Wheeler EVs Loans), Home Loan and Loan against property, Personal Loans, and SME Finance.  

Our Unique Selling Proposition (USP) is presence, speed, distribution, transparency, and service. Today L&T Finance provides offerings with industry best turn-around-time, tailored specifically to the unique requirements of our retail customers. And we provide all the products and services across Urban and Rural India through our digital capabilities and widespread network of branches. The Company processes nearly 50 lakh new loans every year and operates across 2 lakh villages and 100 cities and caters to a database of over 2.2 crore customers.

Additionally, the Company has strategically developed digital finance delivery as a core customer value proposition. This approach has allowed us to reach and serve every part of the customer ecosystem, regardless of their geographical location. Whether our customers reside in urban centres or rural areas, they can access our services seamlessly, ensuring convenience and accessibility for all. This commitment to inclusivity and innovation sets us apart in the market, reinforcing our position as a customer-centric financial services provider.

What are the digital transformation initiatives undertaken by L&T Finance for enhancing the online presence of the brand as well as the accessibility, customer experience?

At L&T Finance, we prioritise 'Fintech@Scale' as a fundamental pillar of our growth strategy. In alignment with this vision, we have forged partnerships with various technology firms within the fintech ecosystem. These collaborations enable us to offer seamless customer journeys and enhanced services.

To optimise our operational efficiencies, wehave established partnerships with over 30 technology firms. These alliances have played a crucial role in enhancing customer experiences and accessing advanced risk assessment tools. Furthermore, these partnerships empower us to leverage new technologies, benefiting all our customers.

Through our direct-to-customer (D2C) offering, the PLANET App, customers can easily access various services across multiple languages and get access to information like their account statements, download repayment schedules, acquire interest certificates, update mandates, and more, all with just a click.

We have also pioneered digital journeys for complex lending product categories like Warehouse Receipt Finance, integrating multiple APIs with collateral managers and processes to facilitate seamless KYC journeys. Additionally, our introduction of newer offerings such as Rural Loans against property has enabled us to better serve our rural customer base and expand our digital footprint across existing and emerging geographies.

Overall, our digital initiatives have significantly increased efficiency, enhanced customer experiences, fostered better collaboration with customers, streamlined processes, reduced costs, and most importantly, enabled the Company to swiftly adapt to evolving trends and technologies, ensuring we remain at the forefront of our industry.

How important is magnifying branding and marketing efforts for the creation of a stronger resonance of L&T Finance in the minds of the prospective stakeholders and customers?

Branding and marketing stand as essential pillars for the survival and growth of any Company, including L&T Finance. Increased efforts in branding and marketing play a pivotal role in establishing brand recognition, ultimately resulting in heightened sales and increased profitability. This strategic focus provides a competitive advantage in the marketplace.

At L&T Finance, we firmly believe in the significance of cultivating trust and credibility among stakeholders and customers. Building these long-term relationships not only fosters loyalty but also facilitates the attraction of new customers by expanding our reach across various platforms.

With robust branding strategies in place, companies can effectively enhance customer retention. Consistent exposure to values and goodwill serves as a constant reminder to customers, reinforcing their connection with the brand. This ensures that customers remain engaged and loyal to their workplace over time.

What are the trends in the NBFC sector at present and any views on how L&T Finance is benefitting from these?

The landscape of Non-Banking Financial Companies (NBFCs) has undergone a remarkable transformation in recent years, evolving from being perceived as "shadow banks" to being recognised as "equal players" in the financial sector. NBFCs have moved beyond merely catering to customers rejected by traditional banks. Instead, they have embraced technology and harnessed the power of data and analytics to differentiate themselves in the market.

Until around 2015, NBFCs had limited access to customer-level granular data, primarily focusing on information related to the assets being financed. However, data is more readily available today, we are no more in a data poor scenario and shifted to one where data is easily available and this has allowed lenders to conduct underwriting based on a combination of variables such as asset information, customer indebtedness, personal and family income, pincode behaviour, market data, and more. This has significantly transformed the lending landscape.

At L&T Finance, we have constructed a robust ecosystem of offerings centered around the customer, leveraging deep data insights, and employing AI and ML models. With the assistance of Account Aggregator data and alternative data signals, we can accurately underwrite customers at a reduced cost and with improved operational efficiency. This represents the transformation of NBFCs like ours, where continuous efforts are made to enhance capabilities, including the development of dynamic credit engines utilising orthogonal signals to strengthen our underwriting models.