Cost and Performance Excellence
Channel preferences in housing finance
28 May 2020
Context
  • Client Description: A large global PE investor
  • Opportunity: Client wanted to understand customers’ channel preferences for availing home loans and benchmark key competitors for the preferred channels
Further, the client also wanted to understand the following: 
  • Channel network (branches, agents, brokers, online) including cost structures
  • Role and effectiveness of the preferred sourcing channel in terms of lead generation, customer acquisition and loan sanction process
  • Selection criteria of different channel partners for sourcing individual home loans (IHL)/ loans against property (LAP)
  • Customer behavior and experience with different channels
Our Approach
  • In-depth interviews with 100+ channel partners pan-India including corporate and individual DSAs (Direct Sales Agents), builders, and real estate brokers
  • In-depth interviews with 50+ IHL/ LAP customers
  • 50+ mystery visits to branches of the target and key competitors across the metro, Tier-1, and Tier-2 centers to understand their channel strategy and preferences 
  • Pan-India survey of 700+ mortgage customers to understand customer behavior and experience while choosing lenders for IHL / LAP and the loan application process with their lenders

Key Insights / Outcomes

Identified the channel preference of target and key competitors among the various sales channels (DSA’s, real estate brokers, builders and direct sales force)

Built a deep understanding of the reasons for such preferences in terms of channel margins, customer experiences, and relationship with the branch / HFC

Mapped the customer journey from buying intent through to loan disbursement

Praxis Value Delivered
  • Action plan for increasing the effectiveness of the preferred channel network based on actionable insights gathered in the diagnostic phase 
  • Roadmap and implementation plan for enhancing customer experience
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