Digital now accounts for 25% of business, says SMFG India Credit

SMFG India Credit

Nearly 25 percent of SMFG India Credit’s business is now generated through its digital ecosystem, the NBFC said on December 10.

The digital book, which tracked assets worth Rs 15,000 crore as of September, expanded at an average annual growth rate of 45 percent over the past two years, the shadow bank said in a release to media.

“Our digital business, now contributing nearly a quarter of our overall business, is a testament to the impact of our accelerated technology investments,” chief operating officer said Swaminathan Subramanian said.

To support this growth, SMFC allocated close to Rs 400 crore as its technology budget for FY25-26.

The investment is aimed at strengthening its digital core through AI-led underwriting, deeper risk analytics, real-time portfolio monitoring, customer behaviour–linked collections, and faster disbursal systems, the non-banking financial company said.

SMFG is the subsidiary of Sumitomo Mitsui Financial Group (SMFG), which is listed on the Tokyo and New York stock exchanges with a market cap of about $108.5 billion as of September 30.

SMFC said its digital lending capabilities are being enhanced through advanced machine-learning models that enable real-time credit decisioning, dynamic risk scoring, and fraud detection. These systems are designed to improve turnaround times and offer customers a smoother and more consistent experience across touchpoints.

The company has also integrated Digital CKYC, Digilocker-based verification, e-sign, and e-stamp solutions into its onboarding journey, making processes fully paperless and compliant.

The company’s digital business growth is also supported by partnerships with multiple fintech platforms. These collaborations have expanded SMFC’s reach among small merchants, gig workers, self-employed borrowers, and other digitally active customer cohorts, it said.

Subramanian said the strengthened digital infrastructure enables the company to operate with greater agility and security while supporting long-term enterprise value creation.

SMFC expects its expanded digital capabilities to reduce turnaround times, enhance scalability, and support new product development across its retail, MSME, affordable housing, and digital lending portfolio.

The company operates 989 branches, covering more than 670 towns and 70,000 villages, and offers products including SME financing, vehicle loans, home loans, loans against property and shares, personal loans, and rural livelihood advancement loans through SMFC and its subsidiary, SMFG Grihashakti.