Ajay Srinivasan, CEO, Aditya Birla Financial Services Group (ABFSG) on whether ABFSG see themselves as an investment advisor or as a distributor.
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NewsTranscript
00:00 So I think this is an ongoing discussion that we are having from our perspective.
00:18 At the moment we continue to remain distributors.
00:19 I think we are staying in that realm.
00:20 But I think the customer need for advice is increasing considerably.
00:21 And I think therefore even if you are a distributor, the customer is expecting you to provide
00:22 advice of what is the best way to do it.
00:23 So I think this is an ongoing discussion that we are having from our perspective.
00:24 At the moment we continue to remain distributors.
00:25 I think we are staying in that realm.
00:26 But I think the customer need for advice is increasing considerably.
00:27 And I think therefore even if you are a distributor, the customer is expecting you to provide advice
00:28 of what is the best way to do it.
00:29 advice of some nature. And ultimately the distinction in this business will be people
00:33 who are providing better advice to their customers going forward. I think, but the distinction
00:39 from a regulatory perspective has other implications and therefore we have to figure that out as we go forward.
00:43 Anything on the NBFC side that you could share? What is happening there?
00:49 So our NBFC has grown quite rapidly over the last few years. We are one of the few people who have
00:56 diversified a non-banking finance company. Our view was that there is opportunity to grow in a number of areas.
01:03 Traditionally the NBFCs have typically been monoline NBFCs. You had housing finance NBFCs,
01:08 gold loan NBFCs, CVE financing NBFCs. We are one of the few NBFCs who has built scale on a diversified basis.
01:16 So we want to continue to be a diversified NBFC. Our view is that there is risk benefit in diversifying.
01:24 And we see opportunities across the spectrum. We see a huge opportunity in SME financing.
01:29 We think that that is an area that will continue to grow. And as the whole entrepreneurial spirit in India grows,
01:35 I think the opportunity to finance SMEs will grow. We see housing finance, even though it has been many years of growth in this industry,
01:42 we still see continual opportunity in the housing finance space. So that will be a second area we will focus on in the lending area.
01:48 [Music]