Business Case Studies & Business Publications

Shriram Transport Finance Company Ltd: A...

Sahay, Arvind, Tiw...

Case

Shriram Transport Finance Company Ltd: Adoption of Fintech

Sahay, Arvind; Tiwari, Tara

IIMA-MAR0508 | Published October 17, 2019 | 20 pages Case

Collection: Indian Institute of Management, Ahmedabad

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Learning Objectives

Shriram Transport Finance Company Ltd. (STFCL), the flagship company of the Shriram Group, India's largest player in commercial vehicle finance is trying to transition from a Relationship based model to a Fintech based model in order to provide end consumers with speed, convenience, choice and savings. Digital transactions had reached an all-time high of 1.11 billion in January 2018 and digital payments were estimated to increase to USD 1 trillion by 2023. However, a judgement by the Supreme Court of India has created additional adoption challenges for the firm. This case revolves around the challenges that STFCL will have to face while adopting Fintech within the firm and getting its customers to adopt it as well. It needs to come up with an appropriate strategy to make the transition from traditional payment systems to digital payments systems, given the kind of business model and the organisational processes used in go-to-market activities.

To understand the classification & current position of NBFC's in India and the NBFC role in the transportation business. To understand the market position of STFCL. To understand the unique nuances of lending to transporters in India - especially for STFCL given its market position and strategy. To understand the relevant technologies in FinTech and where STFCL can use Fintech and for what purpose. To understand the challenges facing STFCL while making a transition from traditional mode of doing business to a FinTech enabled mode of doing business. To suggest technological, regulatory and adoption related actions to effect a transition to a FinTech enabled NBFC in the transportation arena.