Leading MSME NBFC planned expansion via 1,000+ micro-market mapping & branch simulation
28 May 2020
1 min read
MSME lender wants to spread its footprints by expanding the network from the current geographies
Context
- Client description: South India based NBFC focused on lending to MSME segment
- Opportunity: Client wanted to expand its branch network across India and devise an implementation plan for expanding its branch network in other geographies
Further, the client also wanted to understand the following
- Understand the micro-markets served by MSME lenders in various Indian states
- The design structure of the branch from launch to its maturity phase
- Typical branch economics across its lifecycle
Our Approach
- Devised methodology to shortlist the potential locations for opening branches in various Indian states
- Developed analytical model to identify 1,000+ potential regions (blocks / micro-markets)
- Determined competitive intensity and market size of the regions
- Analyzed demand potential of the regions
- Shortlisted the regions based on various macro and micro-economic parameters
- Designed an approach or finalizing the branch location in the shortlisted regions
- Analyzed existing branch network and sales footprint of the client and key competitors
- 30+ in-depth interviews and mystery visits various NBFC branches to understand typical branch economics
- Computed profitability of client’s branches and benchmarked it with key competitors