Shriram Transport Finance Company Ltd: Adoption of Fintech

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Abstract

Shriram Transport Finance Company Ltd. (STFCL), flagship company of Shriram group, India’s largest player in commercial vehicle finance is trying to transition to Fintech based model from Relationship based model in order to provide end consumers with speed, convenience, choice and savings as digital transactions had reached an all-time high of 1.11 billion in January 2018 and the digital payments were estimated to increase to US$ 1 trillion by 2023. While the company is in the midst of transitioning into a Fintech based firm, a judgement by Supreme Court of India has created additional adoption challenges for the firm. This case revolves around the challenges that STFCL will have to face while adopting FinTech within the firm and getting its customers to adopt it as well, and to come up with an appropriate strategy to make the transition from traditional payment system to Digital payments system given the kind of business model and the organizational processes used in go to market activities.

Additional Information

Product Type Case
Reference No. MAR0508
Title Shriram Transport Finance Company Ltd: Adoption of Fintech
Pages 19
Published on Oct 17, 2019
Year of Event 2019
Authors Sahay, Arvind; Tiwari, Tara;
Area Marketing (MAR)
Discipline Marketing
Sector Banking Finance Insurance (BFI)
Learning Objective To understand the classification & current position of NBFC’s in India and the NBFC role in the transportation business. To understand the market position of STFCL. To understand the unique nuances of lending to transporters in India – especially for STFCL given its market position and strategy. To understand the relevant technologies in FinTech and where STFCL can use Fintech and for what purpose. To understand the challenges facing STFCL while making a transition from traditional mode of doing business to a FinTech enabled mode of doing business. To suggest technological, regulatory and adoption related actions to effect a transition to a FinTech enabled NBFC in the transportation arena.
Keywords Fintech; NBFC; Digital Payments; Custoner Adoption; Loans; Commercial Vehicle
Country India
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