PPT on housing finance sector and its technology

1. PROJECT PRESENTATION
CMR CENTRE FOR BUSINESS STUDIES
AFFILIATED
TO
BANGALORE NORTH UNIVERSITY
NAME – V.SHARAVANI
REGN NO- MB202369 DATE-21/05/22
PRESENTATION TOPIC: STUDY OF HOUSING FINANCE SECTOR AND
ITS TECHNOLOGY

2. CONTEXT
 Introduction
 Objectives
 Company profile
 Research Design and Methodology
 Data analysis and interpretation
 Major findings
 Recommendations

3. INTRODUCTION
 The emergence of a formal institutional system for housing finance has been
quite late in India, with the formation of National Housing Bank (NHB) in
1988.
 The housing sector was not only for individual loans, but also in terms of
buildable service land, building material, effective low-cost technology, and
other related know-hows.
 we require solutions that are simultaneously customized and scalable.
 Innovation outstripping changes in existing institutions in the household
finance context is concerns arising about data privacy violations, which
coexist with the undoubted benefits of household-specific financial product
customization based on households sharing personal data with finance
companies.

4. OBJECTIVES
 To analyse and forecast the market size of India home loan
market.
 To classify and forecast India home loan market based on type,
source, interest rate, tenure, area of property and regional
distribution.
 To identify drivers and challenges for India home loan market.
 To examine competitive developments such as expansions, new
product launches, mergers & acquisitions, etc., in India home loan
market.
 To identify and analyse the profile of leading players operating in
India home loan market.

5. COMPANY PROFILE
HOUSING DEVELOPMENT FINANCE CORPORATION-HDFC
 The Housing Development Finance Corporation Limited or HDFC was
among the first financial institutions in India incorporated in August 1994
in the name of HDFC Bank Limited, with its registered office in Mumbai,
India.
VISION
The bank is committed to maintaining the highest level of ethical standards,
professional integrity, corporate governance and regulatory compliance.
MISSION
 HDFC Bank’s mission is to be a world class Indian bank. We have a two-
fold objective
PRODUCT DETAILS
 The product and services offered by HDFC Bank are savings account,
current account, education loan, gold loan, home loan, business loan,
investment etc.

6. RESEARCH DESIGN AND METHODOLOGY
 SECONDARY DATA
 SOURCES OF DATA COLLECTION The following are some
ways of collecting secondary data – Books Records
Biographies Newspapers Published censuses or other
statistical data Data archives Internet articles.
 Sample size- 50
 Based on comparative study and questionnaires

7. DATA ANALYSIS AND INTERPRE
 Banks and Housing Finance companies were grouped in four categories for this
comparative testing project Banks and HFCs shortlisted (based on their
business and presence in South India) for the study are:
o Public sector banks Group A
o Private sector banks Group B
o Agriculture and rural development banks Group C
o Regional Rural Banks (RRB) Group D
o Commercial Bank Group E
o Housing Finance Companies (HFCs) Group D

8. SHARE OF BUSINESS OF THE ORGANIZATION
GROUP PERCENTAGE OF SHARE
GROUP A 35%
GROUP B 53%
GROUP C 33.30%
GROUP D 20%
GROUP E 42%
GROUP F 55%
ANALYSIS
The percentage of share is high in group F
which is Housing Financing company with
23%. The next highest is group B which is
private sector with 22%. The lowest is shared
by group D which is RRB with 8%. The
percentage of share is moderate in group E and
group C which is commercial banking and
NABARD with 14% and 18%.
GROUP A
15%
GROUP B
22%
GROUP C
14%
GROUP D
8%
GROUP E
18%
GROUP F
23%
PERCENTAGE OF SHARE
INTERPRETATION
This graph shows that the percentage of
share is more in HFCs because pre tax profit
on sale of investments of Rs 157.10 Crore
has been recognised in the quarter ended 31
December 2020 and the Corporation's equity
shareholding in HDFC Life stood at 49.99%.

9. RATE OF INTEREST STIPULATED BY THESE ORGANISATON
ANALYSIS
The group C that is NABARD provide high rate of interest compared to other
sectors. The lowest rate of interest is provided by group D that is RRD
SECTOR 7Daysto45Day 46Daysto179Days 180daysto210days 211daystolessthan1year 1year
GROUPA 2.9 3.9 4.4 4.4 5.5
GROUPB 2.5 3 3 3.5 3.5
GROUPC 4.5 4.5 5.5 8.1 8.1
GROUPD 2 3 3.5 4 4
GROUPE 3.2 3.5 4 4.5 5
GROUPF 2.5 2.5 3 4.4 4.4

10. GROUP A
17%
GROUP B
14%
GROUP C
26%
GROUP D
11%
GROUP E
18%
GROUP F
14%
RATE OF INTEREST STIPULATED
INTERPRETATION:
There is a high rate of interest in NABARD because they provide refinance support to building rural
infrastructure; from preparing district level credit plans to guiding and motivating the banking industry in
achieving these targets; from supervising Cooperative Banks and Regional Rural Banks (RRBs) to helping
them develop sound banking practices and onboarding them to the CBS platform; from designing new
development schemes to the implementation of GoI’s development schemes; from training handicraft
artisans to providing them a marketing platform for selling these articles

11. PREFERED BANKING SECTOR FOR HOUSING FINANCE
ANALYSIS
The most preferred bank for housing finance
sector is Housing finance companies which is
Group F with 30% preferences. The next
preferences comes to Public sector which is
Group A with 25% preferences. The moderate
preferences are shared between Private and
NABARD which is referred to Group B and
Group C with 18% and 14% preferences.
Whereas the lowest preference is shared
between Regional Rural Bank which is Group
D and Group E with 5% and 8% preferences.
SECTOR PREFERENCES
GROUP A 31
GROUP B 19
GROUP C 14
GROUP D 5
GROUP E 8
GROUP F 26
GROUP A
30%
GROUP B
18%
GROUP C
14%
GROUP D
5%
GROUP E
8%
GROUP F
25%
PREFERENCES
INTERPRETATION
The preference is more in public bank because the
polices are transparent in public sector banks than
private banks. They keep the same policies for all loan
customers and the decreased rate is effective for
existing customers also almost immediately.

12. REPAYMENT PERIOD OF THESE ORGANISATON
ANALYSIS
This shows group B holds the highest
with 35% which means the repayment
period is more in private sector banks
with 67 years, whereas group C and
group D hold the lowest with 8%
which means the repayment period is
less in NABARD and RRD with 15
years each.
SECTOR REPAYMENT PERIOD
GROUPA 30 YEARS
GROUPB 67 YEARS
GROUPC 15 YEARS
GROUPD 15 YEARS
GROUPE 35 YEARS
GROUPF 30 YEARS
GROUP A
15%
GROUP B
35%
GROUP C
8%
GROUP D
8%
GROUP E
18%
GROUP F
16%
REPAYMENT PERIOD
INTERPRETATION
The graph tells that the repayment period is more in private
sector comparatively to others

13. AVERAGE TURNAROUND TIME
ANALYSIS
This Shows that group D holds the
majority of 35% with average
turnaround time of 30 Days.
whereas in group A and group E
the average turnaround time is 7
Days.
SECTORS AVERAGETURNAROUNDTIME
GROUPA 7Days
GROUPB 15Days
GROUPC 20Days
GROUPD 30Days
GROUPE 7Days
GROUPF 8Days
GROUP A
8%
GROUP B
17%
GROUP C
23%
GROUP D
35%
GROUP E
8%
GROUP F
9%
AVERAGE TURNAROUND TIME
INTERPRETATION
This graph shows that the majority is take by RRB with
30 days of average turnaround time.

14. QUESTIONNAIRES ON THE TECHNOLOGY
OF HOUSING FINANCE
PERFER ADVANCEMENT OF TECHNOLOGY BASED ON THEIR GENDER
ANALYSIS
From the above graph we can
see that 64% of the respondents
are female and 36% respondents
are from male.
CANDIDATES NUMBER
MALE 36%
FEMALE 64%
OTHERS 0%
INTERPRETATION
The majority of responds are from female. This
shows the awareness of the technology,
convenience and how well it has reached out
people.

15. CANDIDATES WHO PERFER ADVANCEMENT OF TECHNOLOGY
BASED ON THEIR AGE
ANALYSIS
This graph shows that the advancement
of the technology is mostly prefered by
18-25 age group people which of 68%
preferences, whereas only 12% of
people who prefer technology are of 40
and above people.
AGE PERCENTAGE
18-25 68%
26-40 20%
41 andabove 12%
INTERPRETATION
This shows that the majority of the responds are at
the age of 18-25.

16. PREFERENCES OFADVANCEMENT OF TECHNOLOGY IN HOUSING
FINANCE SECTOR
ANALYSIS
This shows that 78% of people
prefer the advancement of
technology whereas 4% of people
do not prefer the advancement of
technology.
OPTION PERCENTAGE
YES 78%
NO 4%
MAYBE 18%
INTERPREPATION
Majority of the responds prefer the advancement
of the technology in housing finance sector
because of the digitally-driven approach to
providing flexible financing.

17. NBFCs AND HFCs RIDING TECHNOLOGY WAVE
ANALYSIS
This shows that 88% of the people
have agreed to the statement that these
companies are riding the technology
wave, whereas rest of the 12% of the
people have disagreed to the
statement.
OPTION PERCENTAGE
YES 88%
NO 12%
INTERPRETATION
This shows that the majority of the
responds agree that NBFCs and HFCs are
riding the technology wave in the recent
years.

18. GROWTH OF NBFCs AND HFCs DUE TO TECHNOLOGY DEVELOPMENT
ANALYSIS
This shows that 68% of people
have agreed that the
development of technology with
help in the growth of NBFCs
and HFCs, whereas 30% are not
sure with the statement and 2%
of people have disagree the
statement.
OPTIONS PERCENTAGE
YES 68%
NO 2%
MAY BE 30%
INTERPRETATION
This shows that majority of people have agreed
that the development of technology with help in
the growth of NBFCs and HFCs .

19. IMPLEMENTATION OF MODERN TECHNOLOGIES
ANALYSIS
This show that 14% of people
strongly agree that implementing
modern technology will widen the
range of banking customers, and
70% just agree to the statement.
14% of people strongly disagree to
the statement whereas 4% just
agree to the statement.
OPTION PERCENTAGE
STRONGLY DISAGREE 12%
DISAGREE 4%
AGREE 70%
STRONG AGREE 14%
NEUTRAL 0%
INTERPRETATION
This graph shows that 70% agree that implementing
modern technology will widen the range of banking
customers by delivering new and timely products.

20. CHANGE OF TREND TO KYC DOCUMENTS
ANALYSIS
84% of the people have
agreed that the trend has
moved to KYC documents
whereas the 4% of the
people have to disagree to
the statement.
OPTION PERCENTAGE
YES 84%
NO 4%
MAY BE 12%
INTERPRETATION
This shows that majority of the people have
agreed that it has moved to non-traditional
financial institutions is growing.

21. CHANGES HFCs HAVE TO CONSIDER
ANALYSIS
94% of the people said that
this statement is true
,whereas 6% of people said
that this false.
OPTION PERCENTAGE
TRUE 94%
FALSE 6%
INTERPRETATION
94% of the people said that this statement is
true and tells Housing finance companies
need to change their strategy, enhance their
product offerings, streamline processes &
deliver an endto-end customer experience.

22. ADVANTAGES OFADAPTING OF NEW TECHNOLOGY
ANALYSIS This shows we
understand that 92% of
people agreed whereas 8% of
people do not agree to this
statement.
INTERPRETATION From this graph we understand that 92% of
people agreed that adaptation of technology, will help remote
customer interactions, through video KYC (Know Your Customer)
and eSignatures.
OPTION PERCENTAGE
YES 92%
NO 8%

23. STEAMLINED OPERATION HELPS IN INCREASE IN THE
PRODUCTIVITY
ANALYSIS
From this we understand that 74% of
people have agreed that streamlined
operational workflows for greater
productivity, accuracy, and cost
efficiency.
INTERPRETATION From this graph we understand
that 74% of people have agreed NBFCs and HFCs are
completely redefining the way they transact with
internal and external customers.
OPTION PERCENTAGE
AGREE 74%
DISAGREE 12%
STRONGLY AGREE 12%
STRONGLY DISGREE 2%
NEUTRAL 0%

24. MAJOR FINDINGS
 By implementing a huge range of modern technologies, including
artificial intelligence (AI), machine learning (ML), robotic process
automation (RPA), mobility, predictive analytics, chatbots, and
blockchain, NBFCs and HFCs are completely redefining the way they
transact with internal and external customers.
 However, many NBFCs and HFCs do not currently have the
infrastructure to effectively modernize their operations and leverage
these new-age technologies.

25. RECOMMENDATIONS
 The need of the hour is a robust, platform-based solution that can allow
NBFCs and HFCs to implement the right mix of technologies, supported by an
agile IT framework.
 Such a solution should be able to support:
o Instant loan disbursal through open-API banking
o Mobile- or portal-based loan disbursal
o AI-driven credit assessment
o Online services on low-end mobile phones
o Multiple languages
o Real-time access to relevant information, to facilitate rapid processing by
backend teams
o Collaboration amongst and reporting by multiple agents, simultaneously