Muthoot Pappachan Group: Driven With A Vision To Offer Customer-Centric Financial Services | CEOInsights Vendor
Muthoot Pappachan Group: Driven With A Vision To Offer Customer-Centric Financial Services

Muthoot Pappachan Group: Driven With A Vision To Offer Customer-Centric Financial Services

Thomas Muthoot,  Promoter

Thomas Muthoot


India has a diversified financial sector undergoing rapid expansion led by various factors, including policy support, improving business fundamentals, product and services innovation, and target to severely under penetrated areas. The sector is experiencing rising incomes and heightened government focus on financial inclusion and digital adoption. The development of India's technological and entrepreneurial ecosystem will make expanding the financial services market easier in regional and rural areas. The market opportunity and conducive and proactive regulators have helped the financial services industry grow notably.

NBFCs play a critical role in financial intermediation and promoting inclusive growth by providing last mile access to financial services to meet the diversified financial needs of under banked customers. A legacy built on ethical values of integrity, transparency, and tradition, Muthoot Pappachan Group(MPG) is one of the leading players in gold loans, micro finance, and two wheeler financing in India. Gaining rich experience over the decades the Group encompassed unimaginable proportions and has planted its roots in diversified sectors.

With the customer-centric approach and innovation, MPG has become a significant entity in the Indian business landscape. The Group has established a business without boundaries, considering challenges as stepping stones to progress. Thomas Muthoot, Executive Director, Muthoot FinCorp Ltd. recently engaged in a one-on-one interaction. Following is the highlight from the interaction.

Give a brief account of the journey of the Muthoot Pappachan Group. Describe its brand persona and what it represents.
Muthoot Family has more than a century-old business legacy. Muthoot Ninan Mathai founded the family business in 1887. Muthoot Pappachan Group (also called Muthoot Blue) was founded in 1979 by Mathew M Thomas, fondly called Muthoot Pappachan.

Muthoot Pappachan Group is a highly diversified and one of the biggest business houses in India. Based out of Kerala, the Group has business interests in Financial Services, Automotive, Hospitality,RealEstate and Infrastructure, Alternative Energy, IT Services, and Precious Metals. The flagship company of the Group, Muthoot FinCorp, is a proactive Non-Banking Finance Company with strong fundamentals serving as one of the leading gold loan providers in the country. The Group has a whole stack of financial service offerings provided through its four major
financial service companies Muthoot FinCorp (Gold Loan), Muthoot Capital Services (Vehicle Loan), Muthoot Microfin (Microfinance), and Muthoot Housing Finance.

The precise planning and designing of products help us to serve the financial needs of the middle and low-income segments in India. Muthoot Pappachan Group ensures the highest level of ethical standards, professional integrity, and corporate governance in its operations. The Group makes it a point to rigorously adhere to applicable laws, rules, regulations, codes, and standards of impeccable business practices to uphold the reputation of the Group. It is also acutely aware of and promotes sustainable development, responsibility towards the environment, and the upliftment of local communities.

Muthoot FinCorp is a mass provider of finance in the form of gold and other loans, with over 3500 branches pan India and an average walk-in of 75,000 customers daily

Tell us about your flagship offerings and the value additions customers can expect from your products and services.
Muthoot FinCorp is a mass provider of finance in the form of gold and other loans, with over 3500 branches pan India and an average walk-in of 75,000 customers daily. Its unique structure results from decades of research and experience in the company's rural strongholds. It also allows the company to provide quick and customized finance options and investment products. It offers its target customers an extensive array of financial products and services, like Gold Loans, Small Business Loans, Affordable Housing Loans, Two wheeler Loans, and Used-car Loans.

Muthoot Microfin is dedicated to serving the bottom of the pyramid section of society by providing customized financial services to the needy and underserved. Muthoot Microfin has 24 lakh active women customers as of date. It is a leading microfinance institution focused on providing microloans to women customers predominantly in rural regions of India. Our operations help to promote entrepreneurship among women and inclusive growth. Delivering financial assistance to the masses, including underprivileged people living in the rural sectors of Indian society, at affordable terms and in quick turnaround time with hassle-free processing is the aim of our financial inclusion drive.

Please tell us about your Commercials finance products. How is it beneficial for the lower middle and lower income groups?

Our wide range of lending products caters to the life cycle needs of middle and low-income house holds. The history of working with customers at the bottom of the economic pyramid helps us better address our customers' needs in
rural households and design lending products to cater to their requirements. We are passionate about helping the marginalized section of society to realize their dreams. Our brand identity possesses an unwavering commitment to providing our clients with the support they need to improve their standard of living.

What are the CSR activities your Group focused on?
Muthoot Pappachan Group undertakes CSR initiatives through Muthoot Pappachan Foundation. The foundation has touched thousands of lives through its diverse programs. Our CSR initiatives revolve around the theme 'HEEL,' covering 'Health, Education, Environment and Livelihood.' For the last eight years, we have been running the 'Smile Please' campaign, which offers free corrective surgeries to children with cleft lips. The Group has sports academies (Football Volleyball, Cricket, and Badminton) built to create an advanced sporting culture in the country.

The academy offers free training to children from disadvantaged backgrounds with all facilities, including regular education. Our other major CSR initiatives are Blue Butterflies providing support to paediatric cancer patients, and Muthoot Lifeblood Directory, to support patients who are in emergency blood requirements. The Foundation is a crucial part of the MPG's corporate sustainability mandate and provides a mechanism to engage both internal and external stakeholders while implementing various programs at the grassroots level. This engagement is integral to everything we do, and our programs ensure a meaningful 'hands-on' meeting for the employees of the MPG.

What is the future destination envisioned for Muthoot Pappachan Group?
Muthoot Pappachan Group has envisioned building a chain of financial services supermarkets, primarily serving our country's middle and low-income segments. A much-underserved population in this segment needs to be supported to improve their financial well-being. The next generation of the Muthoot Pappachan family is being groomed and has also started working with us on futuristic ideas. A super App (Muthoot One) is being readied for the seamless integration of services offered by our financial service companies.

Thomas Muthoot, Executive Director
Mr Thomas Muthoot, one of the core promoters of Muthoot Pappachan Group is passionate about serving the Indian grassroots and helping them build their dreams. His expertise in emerging markets and customer needs have wielded the diversification of the Group into what it is today. Mr Muthoot follows the principle of "Business with a Purpose" and leads the Muthoot Pappachan Foundation in its numerous philan thropical initiatives.

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