years. We intend to develop products and services designed for rural and urban retail customers, as well as continue to
actively promote our accounts and deposits. We intend to leverage our existing customer base of over 1.44 million
customers as of December 31, 2020, to promote our inclusive finance products which we believe will result in a sustained
and deeply penetrated deposit base.

We intend to undertake the expansion of our deposit base through measured expansion of our Banking Outlets in
metropolitan and semi-urban areas. For further information, see ““ — Expand geographic presence and penetrate further
into existing geographies”. In addition to expansion of our Banking Outlets that we intend to open to enhance our asset
base, and in order to fund those assets, we will also seek to selectively open Banking Outlets specifically focused on
generating deposits in urban areas where there is a large potential deposit base. We believe that our existing Banking
Outlets, as they become more mature, will continue to be a source of additional new deposits and thereby strengthen our
funding base. We will also continue to engage with BCs to act as a channel for sourcing additional deposits. We will
focus on entering into partnerships with individuals with prior banking experience for our urban Banking Outlets and
intend to continue to strengthen our BC network in rural areas. We intend to continue our partnership with payment banks
that allows us to source deposits from the customers of such payment banks.

Continue to focus on technology and data analytics to grow operations

Our strategic focus is to use technology to become an agile and data-driven SFB. We believe that the use of advanced,
cost-effective technology has been a significant factor contributing to the growth of our operations. By enhancing our
digital and technology platform further, our endeavor is to empower customers to access various facilities, products and
services on their own, reduce our costs and thereby increase operating efficiencies. As part of our digital roadmap, we
plan to also leverage partnerships with technology service providers and fintech companies to improve productivity of
our field force, accuracy and quality of data captured, and reduce turnaround time. Our endeavour going forward will be
to ensure that customer onboarding and deposit sourcing will be paperless through the use of ‘e-K YC’ and ‘video-KYC’.
This will also allow us to provide value-added products and services to our customers. Towards this end, we have built
an enterprise integration layer that will facilitate integration with fintech organizations through APIs including open
banking API framework. We are in the process of automating our business origination system (“BOS”) for products other
than our Inclusive Finance products by engaging with fintech partners. The BOS will be interfaced with a number of
API’s to automate aspects of loan processing including the disbursement of the loan. We will continue to invest in digital
technologies to drive greater customer centricity and employee empowerment. We also plan to leverage technologies
such as robotic process automation in the future to drive greater operational efficiencies.

 

Our focus will be on the use of data analytics to perform customer segmentation and understand their evolving
requirements leading to new product development, faster and better credit decisions and pro-active risk management. We
are investing into an analytics platform for enhancing our analytical capability and automating various analytical output.
The platform will also help improve sales productivity of our employees and provide detailed insights for growth and risk
management. We are in the process of ensuring integration of information pertaining to our customers, our geographies
of operation and competitors for different product segments and customer segments on a single platform, which will
enable us to perform analysis pertaining to customer segmentation, better and more targeted cross-selling and up-selling
analysis and review market behavior for risk-based monitoring. This will enable us to take key decisions on a near real-
time basis. We believe that greater adoption of our digital service delivery mechanisms will enable us to be more efficient,
customer friendly and over time perform more reliable data analytics, resulting in target customer profiling, customized
and tailor-made products to suit the diverse requirements of our customers and improved customer satisfaction.

Expand geographic presence and penetrate further into existing geographies

As of December 31, 2020, we conducted our operations through 554 Banking Outlets in 13 states and union territories in
India. While historically our operations were focused in Maharashtra, Tamil Nadu and Odisha, we have expanded our
operations to Gujarat, Karnataka, Madhya Pradesh, Rajasthan, Chhattisgarh, Puducherry, Telangana, Uttar Pradesh and
Delhi. We intend to continue expanding our network of Banking Outlets to drive greater and deeper penetration in these
states while focusing on low and middle-income individuals and small businesses that have limited or no access to formal
banking channels, spread across urban and semi-urban markets. We also intend to open targeted Banking Outlets in urban/
semi-urban areas in order to grow our business amongst mass market customers in these areas. We believe these areas
represent a significant opportunity for our continued growth as we expand banking services in areas where unbanked and
underbanked customers have traditionally been underserved by formal banking facilities. While expanding our network
of Banking Outlets we will continue to evaluate various market credit parameters using time series analysis on credit
growth, delinquencies, customer growth or obligation inflation and also use publicly available metrics including
household information, population, economic activities and deposit data. We believe that our use of data-based
decisioning to open additional Banking Outlets will offer us better returns and lower risk.

148
