By Sachin Murdeshwar

 

Mumbai : A one of its kind loan service company works alike an online cab aggregator model and has already helped disburse Rs 350 crore worth of loans in the last 15 months

Poonam Seth, was just an ordinary house wife till 10 months ago. Today she generates a monthly income of almost Rs 75000. This is thanks to the commission she makes from clients whom she advises and help get banking loans.  This is the model – Cash Cow, a Mumbai based startup operates on.

Gaurav Goyal, one of the co-founders of Cash Cow explains that their idea is similar to an online cab aggregator. “Someone generates a lead, there is a middle operating company and finally there is the final service provider. We realised that there is a huge supply demand mismatch in the loan service business which we wanted to fill,” he says.

In the year, 2017, four professionals from different expertise got together to set up this one of a kind company and christened it cash cow. “There are hundreds of experts across the country sitting idle or working below their potential. Be it like retired officials and new mothers who have taken a break from work and don’t wish to work full time. Our idea was to provide them leads which they can take it forward,” Goyal informs.

Today there are more than 3000 Cashcow Financial Advisors across India, who have found a tremendous earning potential in the trade.

“For many Cashcow has opened up a door to realize their true earning potential. “The Network Effect” that Cashcow has brought has created so much potential for employment,” he adds.

The Cashcow Network

Cashcow brings retail banking products to customer’s doorstep through its Network of Certified Advisors. The ‘Network’ solves two major problems. It brings value to the Banks and Financial Institutes by solving the Distribution Problem, while helping Customer get Personalized Service and Effective Financial Advice. Cashcow does not charge any fees from the customer, the startup’s revenue comes from banks and NBFCs.

After launching in January 2017, Cashcow has quickly gained momentum, building a presence in more than 15 cities across India and Developing a Network of more than 3000 Financial Advisors. Cashcow has tied up with more than 55 Banks, NBFCs and Fintech Lenders. Currently, the startup is offering personal loans, business loans, home loans, mortgages and credit cards.

So far the startup has successfully disbursed loans worth Rs. 350 Crore and 25000 credits cards in a short span of 15 months. In a small journey of 15 months, the startup has become operationally profitable and clocking almost  Rs. 2 Crore as its monthly revenue.

How does the model work?

When a borrower goes to online loans aggregators, he ends up getting a lot of calls from various banks, because his contact information has been sent to various lenders. This results in adding more confusion to the borrower.

When a customer applies to Cashcow, he is assigned a personal certified Advisor, the advisor helps the customer for identifying a correct lender for his profile. With the help of technology layer, the customer is shown the probability of his loan happening with various lenders. The trained Advisor help the customer in understanding various offers & benefits of various lenders. The advisor help in applying for the suitable loan product.

Banks and NBFCs prefer Success Based Models

Banks have tried serving leads from online players, but the strategy has been a big setback due to the poor quality of leads. When an online player transfers a lead to banks, banks have to set up telecalling centers for serving those leads, eventually, the cost of this set up adds up to the risk levels. The success rate of online leads is less than 1%, which is very low, thus lenders have started preferring success based model rather than CPL (cost per lead) model.

Cashcow’s personal concierge model has resulted in more than 30% success rate for some of the banking products (In a success based model, bank share revenue only on the success of a lead).

The Scalable Model

Cashcow is inspired from LIC model, where more than 3 million LIC agents are helping customers on the ground. LIC is able to create respect and loyalty in the agents. The Cashcow founding team believes in bringing change in the lives of people. Today Cashcow is appearing as an alternative income source for many of the micro entrepreneurs.

“Fastest, Cheapest and Variety”, Says Co-founder

RBI data shows that more than 90% of the loan book in India is captured by banks, remaining pie is where NBFCs and fintech lenders are competing. Unfortunately, loan application process of most of the banks is mostly offline, though few banks have come forward with in-principle approval APIs (also called as soft approval).

Some NBFCs has started rolling out their full set of APIs which include soft approval and digital disbursement too. Fintech lenders are also in the same competition of, “Who is going to provide the loan in 3 minutes?”.

“Eventually, 3 factors will drive the fintech lending space, Fastest, Variety and Cheapest” Goyal reveals.

“Currently, we are able to meet 2 factors, which are ‘Variety’ and ‘Cheapest’ and for the 3rd one, ‘Fastest’,  the Banks and NBFCs have to work equally hard with us.”, he adds.

Cashcow is a financial institution that been created under a shared vision of our co-founders who come from various backgrounds. The Cashcow team is working towards one goal-to create an unparalleled financial service in the India fintech sector.

Cashcow aim to revolutionize the online lending space with complete transparency. With the Cashcow App track the status of your application from the initial enquiry to the final disbursement. Through real time data driven technology compressed into our application, we provide our clients the highest standards of efficiency and clarity. Apart from the real time back-end support offered by our team, our relations team is ready to assist our clients for any issues they might face. With over 180 advisors currently available across 7 cities, every customer is handheld through the entire process. Through partnering with more than 50 banks and NBFCs we’ll get you the best options optimized to your preferences.

Cashcow is bringing solution to all your banking needs to your doorstep, from more than 50 bank. Be it Home Loan, Personal Loan, Business Loan, Loan against Property, Balance Transfer or Credit Cards, We have a certified financial Advisor to handhold you in your financial Journey.