SMFG India Credit Sees 25% Business From Digital Channels

SMFG India Credit (SMICC), one of India’s NBFCs, is seeing clear returns on its digital transformation strategy. Nearly a quarter of its business now originates from digital channels, translating into an Asset Under Management (AUM) of about ₹15,000 crore as of September 2025. This milestone reflects a 45% CAGR in digital business growth over two years, a sign of how data-led platforms are reshaping retail and small business lending across the NBFC landscape.

The company’s accelerated digital shift comes with a ₹400 crore technology investment plan for FY25–26, aimed at strengthening its core architecture, scaling AI-led underwriting, and building capabilities for real-time portfolio tracking and analytics-led decision-making.

Inside SMFG’s Digital Transformation Strategy

SMICC’s digital approach is built on advanced analytics and machine learning models that streamline every stage of the lending lifecycle—from application to disbursal. The company uses AI-driven credit decisioning, dynamic risk scoring, and fraud detection models to cut turnaround time and improve consistency in underwriting.

The lending experience has also become more frictionless thanks to digital CKYC, DigiLocker-based verification, e-sign, and e-stamp integrations, moving borrowers toward a completely paperless journey. Complementing this, layers of biometric security, deepfake detection, and AI-based identity verification safeguard the ecosystem.

“Our digital business, now contributing nearly a quarter of our overall business, is a testament to the impact of our accelerated technology investments,” said Swaminathan Subramanian, Chief Operating Officer, SMFG India Credit. “By leveraging robust partner ecosystems and strengthening our digital core, our aim is to be more agile, secure, and efficient, while creating long-term enterprise value.”

Fintech Partnerships Deepen Digital Reach

SMICC’s momentum is also being driven by its partnerships with multiple fintech players. These tie-ups have extended its reach into small merchant, gig economy, and self-employed borrower segments—groups at the center of India’s fast-growing digital credit ecosystem. API-based collaboration models allow seamless integration across partner ecosystems, enabling real-time loan processing, automated reconciliations, and instant communication with customers.

Such partnerships have positioned SMICC as a hybrid NBFC–fintech player, capable of balancing regulatory rigour with technology speed and agility. The expansion of this digital-first approach is expected to further reduce loan turnaround time, enhance product scalability, and drive innovation across retail, MSME, and affordable housing portfolios.

Building A Future-Ready Lending Franchise

With the new technology investment, SMFG India Credit is effectively laying the foundation for a next-gen, AI-first lending infrastructure: one that mirrors global banking standards while addressing India’s diverse credit needs.

Having built a presence in 670+ towns and 70,000+ villages, the NBFC now combines its physical reach with digital intelligence, ensuring borrowers, especially in underbanked regions, gain access to faster, compliant, and transparent credit.

As SMICC continues integrating its advanced technology stack across operations, its focus remains on balancing speed, security, and scalability, a combination setting benchmarks for NBFCs navigating the next phase of digital credit transformation in India.