Sky’s the limit: How HDFC Credila’s CFO Manjeet Bijlani is pioneering Cloud-first strategies

The advent of cloud-based solutions has marked a significant shift in the financial landscape, enabling organisations to streamline their operations while reducing the complexities associated with traditional IT infrastructure. The ability to quickly adapt to market changes and roll out new digital implementations has been a game-changer, particularly in a fast-evolving financial environment.

CFO India recently engaged in a conversation with Manjeet Bijlani, CFO, HDFC Credila, to delve into the impact of these cloud technologies on their financial operations.

Below are the edited excerpts:

Q. How have cloud-based solutions revolutionized your financial operations, and what specific improvements have you observed in efficiency and decision-making?

Manjeet: Cloud-based solutions offer numerous advantages, including flexibility, scalability, accessibility, and disaster recovery. By eliminating the need for expensive infrastructure such as data centres and DRP maintenance, these solutions have also significantly reduced the time to market for new digital implementations. Increasingly, traditional technologies, including those from Oracle, have shifted to Software as a Service (SaaS) models. Credila has likewise migrated its entire technology stack to the cloud, benefiting from the cost optimisation and the creation of a technology stack focused on decision support systems.

Q. In what ways are emerging technologies like AI and machine learning transforming the education loan sector, and how are you leveraging these advancements to enhance your own services at HDFC Credila?

Manjeet: Credila has developed a bespoke Loan Origination System (LOS) platform that leverages AI to streamline the customer onboarding journey. The platform automatically populates most customer data from bank account statements, KYC documents, and more, significantly reducing turnaround times by eliminating manual data entry and associated errors. This enables a more focused and qualitative analysis of student demographics and credit appraisals.

While the company is not currently utilising machine learning, there is potential for its application. For instance, borrowers with a strong credit profile who meet specific criteria could be green-channelled with light-touch underwriting.

Q. When you speak about AI and the insights it provides, is that embedded in your financial system?

Manjeet: Currently, AI is not embedded in our financial system. However, AI and machine learning are well-suited for repetitive processes where cost optimisation and process improvement are key objectives. For instance, robotics can efficiently handle tedious reconciliation tasks and identify process gaps that require re-engineering.

Q. Can you elaborate on the key business benefits you’ve experienced through the adoption of Oracle Fusion Cloud ERP and Fusion Analytics Warehouse in driving financial growth and operational efficiency within your company?

Manjeet:  The adoption of Oracle Fusion Cloud ERP has been transformative, making financial reporting seamless through its exceptional integration capabilities with our Loan Management System, Treasury Systems, Banking gateways, and more. With Oracle Fusion, we recalibrated our entire chart of accounts and cost centre hierarchy, allowing for a more robust review of costs and financial performance. Additionally, the company migrated its legacy Oracle ERM database to Fusion Analytics Warehouse (FAW), enabling multi-year financial analysis.

Q. How has seamless integration with Oracle solutions supported your organization in overcoming industry-specific challenges, and what future opportunities do you foresee with this partnership?

Manjeet: Oracle Fusion comes with a robust integration layer, Oracle Integration Cloud (OIC), which has provided the company with a unified view of financial performance. Multiple systems now communicate with Oracle, either in real-time or through scheduled batch runs. The integration of our treasury system, cash management systems with banks, and loan management systems with Oracle has allowed us to benefit from real-time data, enabling faster decision-making in areas such as funding plans, cash management, and liquidity management. This integration also ensures quicker closing of monthly, quarterly, and annual financial reporting.

We are also exploring various Oracle solutions, including the automation of channel partner payouts and procure-to-payment processes.

Q. With the education loan market in India projected to reach USD 150 billion by 2025, what significant opportunities and challenges do you anticipate, and how are you preparing to address them?

Manjeet:  The burgeoning middle class, coupled with the aspirations of youth seeking higher education both within and outside India, presents a significant opportunity for education loan financiers like us. However, these opportunities come with challenges, such as increased competition from banks and NBFCs entering the education loan market, leaving customers spoilt for choice.

Our goal is to provide a seamless and smooth customer journey, aiming for in-principle loan approvals not within an hour, but within a day. Leveraging our best-in-class technology stack, we’ve enhanced the customer experience with a digital-native onboarding process, digital KYC and documentation, and comprehensive tracking of the customer application through to credit decisioning and sanction letter issuance.

We enjoy a strong brand recognition and, with our best-in-class services, including a wide range of student journey-related offerings, we are the first choice for students seeking loans for higher education.

Q. What strategic initiatives are you prioritizing to unlock the future of financial success for HDFC Credila, and how do you plan to maintain a competitive edge in the rapidly evolving financial landscape?

Manjeet: HDFC Credila has always been a pioneer in offering innovative solutions, such as student loans with a moratorium during the study period and partial interest servicing. Our goal is to provide comprehensive services, including extended insurance options like credit cover, health and travel insurance, as well as credit cards and the ability to open an international bank account from day one. These offerings create a one-stop solution for students going abroad for higher studies.

Our open architecture allows us to provide a variety of products from different service providers, effectively moving us toward an open marketplace where all services for students are available at the click of a button. This approach gives us a competitive edge in the market.