July - 2013 - page 6

Page 6
Developing countries have a large number of informal mi-
croenterprises, These entrepreneurs do not have any kind
of credit history and it is very challenging to understand
their cash flows and entrepre-
neurial ability. JFS vision is to
reach this customer base at an
individual level. To understand
this customer more JFS is col-
laborating with a company
called Entrepreneurial Finance
Lab (EFL). This company expects to help JFS improve
portfolio performance by selection of better and new cli-
ents, reduce the level of defaults and extend credit to new
EFL is a US based enterprise that was started in 2006 by
Harvard researchers Bailey Klinger and Asimm Khwaja who
wanted to develop a credit screening tool for Small and
medium enterprises who could not get access to banks.
Today the tool is used for over 50000 customers in 27
countries and in 21 languages.
EFL has developed scalable, credit scoring technology to
determine the credit risk of any business, regardless of
past credit history, possession financial documentation,
size or industry. EFL utilizes a proprietary psychometric
application process that incorporates an entrepreneur’s
attitude and outlook, ability, business acumen and charac-
ter to identify high potential, credit worthy entrepreneurs.
EFL claim their partners (who use it on their customers)
have doubled the number of applicants and have in-
creased approvals by 250%, and decreased the default
rate by 35%.
Customer evaluation is done by a simple questionnaire
which the customer has to answer independently i.e. with-
By Narendra K
out any help. This is a computerized questionnaire with
approximately 200 questions that takes an average 45 min
to complete by the customer. This application has differ-
ent kinds of questions on ethics, honesty, attitude, belief,
business skills and intelligence. The questions will be
changed and reordered from customer to customer. The
questions are simple and there is no right or wrong an-
swer. The same question may also be asked in different
ways. The questionnaire has been prepared in four lan-
guages ie Kannada, Tamil, Hindi and English. While an-
swering the questionnaire customer should not use pens,
mobile, pen or note books. If the business is run on a part-
nership, the main decision maker of that business has to
answer the questions. JFS executives should not help the
customer in answering the questions. If customer is illit-
erate JFS executive has to read the questions to the cus-
tomer and extract a response. Customer responses are
kept confidential at all times.
All applicants of JanaOne and EFS must complete an EFL
Application either at the branch or in the field. The appli-
cation will be scored by EFL using their proprietary soft-
ware. Based on the scores and other inputs, Janalakshmi
will take a credit decision on the loan application. The EFL
model is in pilot stage and we expect to see good results
Training Dept.
Categorisation of clients
By Thrishuli B
HR Dept.
The much awaited IJP process was announced by the man-
agement in May 2013. Consider-
ing our growth and as part our
ambitions to provide greater
growth opportunities for existing
team this was a good opportunity.
The IJP process was a good example of inter-functional
teamwork. A panel of interviewers were chosen and the
schedules from 17th Jun to 21st June were fixed at differ-
ent zones at places including Bangalore, Mumbai, Delhi
and Chennai. Functional heads and neutral interviewers
were mixed up to bring about objectivity and quality in the
selection process.
There were 242 eligible staff who had applied to various
positions according to the circular. The interviewing panel
set up met these candidates and 135 staff were selected.
This is a good success rate of 56%.
While many look at promotion as meaning higher salary, it
is needless to state that all promotions also come with
additional responsibility. We are sure all the promoted
staffs are geared up to take up the challenging assignment
in their new roles. To those of you, who did not make it for
the next level during the promotion, don’t lose heart. At
Janalakshmi, opportunity knocks more than once! You
need to be better prepared in terms of knowledge and
skills to be successful next time. Keep going with high spir-
its and please spend time on learning more of what goes
on in the neighbouring desk, supporting department, com-
pany or the industry.
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