Q] Gold is an emotional and culturally significant asset for Indian households. How does that shape Muthoot Finance’s marketing of gold loans?
Gold is indeed an emotionally and culturally significant asset. In simple words, we see ourselves as guardians of trust, helping society unlock the true value of its emotional currency. We do not deal with household jewellery. We deal with their emotional currency. Hence, trust is the bedrock of our business.
As far as marketing is concerned, all our communications are conceived and conceptualised within the framework of trust. That is one uncompromising attribute for every Muthootian. The way they deal with our customers, accept the gold, process the gold, the way they return the gold at the time of closure—every action is driven on the fundamental premise of trust that the customer has reposed in us.
Q] As digital convenience makes borrowing easier, how do you ensure speed does not come at the cost of trust and safeguards?
One great value proposition that we have been providing for quite a few years now is that over and above our widespread network of 7,500 branches, we also offer something which is called gold loan at home, wherein customers can book an appointment and our Muthoot Finance staff will visit them in their home. We’ll assess the process and secure the gold at your home itself. And once the gold is sanctioned, the amount will be credited to your account and you will get a confirmation SMS from your bank.
We also offer paperless complete Aadhaar enabled e-KYC processing in the branch to minimise documentation. We also have exciting WhatsApp journeys; you can top up your existing gold loan account by clicking on three simple steps. It’s completely digitised.
Q] How does financial literacy influence the way Muthoot Finance approaches customers, particularly in Bharat?
Financial literacy remains an important part of financial inclusion, especially because access to credit is only one side of inclusion. Informed borrowing is the other side. The greater responsibility is to ensure that they understand the cost, tenure, repayment obligations and the consequences of default. With more than 70 per cent of our branches in semi-urban and rural India, we are truly a Bharat brand. At Muthoot Finance, we also have a wide cross-section of loan tenures. Consumers can choose from bullet repayment schemes, EMI-based schemes and monthly interest payment schemes. We incentivise customers so we can help borrowers to repay timely, inculcate some financial discipline and protect their gold from being auctioned.
Q] With similar products across the category, what ultimately differentiates Muthoot Finance?
Products and offerings can be replicated, but the experience of trust is hard to replicate. Trust is not tested when we take the gold, it is actually tested when the customer comes to take it back. We take pride in their confidence that their gold is fairly valued, securely protected and returned with the same dignity with which it was entrusted to us. And our guiding philosophy, ‘Where Trust Is a Tradition,’ speaks volumes about how important trust is to us.
