Repeat business thrives on Personalization & Transparency

Sudev Kumar V, Executive Vice President, Branch Banking, shapes ESAF Small Finance Bank's gold loan strategies with technology and customer-centricity:

- Ravi Lalwani

Ravi Lalwani: What mechanisms do you deploy to verify gold purity?

Sudev Kumar V: We utilize traditional and effective methodologies to verify gold purity, including the acid test, salt test, touchstone test, and precise weighing. Each branch has a comprehensive gold loan appraisal kit, ensuring accurate and reliable testing. Additionally, we conduct continuous market analysis to understand patterns of fraudulent activities. This knowledge is then used to sensitize our branches through regular online and offline training sessions.

How do you safeguard against stolen gold being used as collateral?

We safeguard against stolen gold being used as collateral by implementing rigorous customer profiling practices, including enhanced due diligence on customer profiles and mandatory customer profile verification (CPV) for all new and high-value customers. Additionally, we conduct address verification for customers located beyond a certain distance and for transactions above a certain amount. These measures ensure that we maintain the highest levels of security and integrity.

What is the income profile of the most common borrowers?