NBFC Sourcing Strategy: Using Open Data to Unlock Hidden Catchment Potential

A mature branch is considered an ideal state for any lending organisation.

Definitions vary, but typically:

• 2–3 years of vintage

• ₹10–40 Cr AUM (depending on product, ATS, geography)

At this stage:

• opex stabilises

• returns become predictable

• operations run smoothly

Naturally, most organisations want to hold this state for as long as possible.

The Hidden Assumption in “Mature” Branches

In practice, we see something interesting.

The definition of a “mature branch” is often treated as static.

Same expectations:

• across high per capita states

• and lower income geographies

• across different ATS environments

Some organisations adjust slightly — usually based on local knowledge.

But rarely is there a structured answer to a basic question:

What % of the eligible catchment have we actually penetrated?

Why This Matters More Today

This question is becoming more important now.

With most NBFCs and MFIs:

• moving customers from MFI → MSME → LAP / higher ticket products

• increasing ticket sizes

• driving AUM growth from existing customers

Branch growth can start looking healthy.

But sourcing may already have slowed down.

What We Saw on the Ground

We visited a cluster of mature branches in Uttar Pradesh.

Observations:

• new village sourcing had reduced

• centre creation was sporadic

• AUM was still growing

But growth was coming from:

• higher ticket sizes

• not from new customer addition

And the reason was not policy.

It was belief.

“We have already expanded. There is not much left to do.”

Once marquee numbers are achieved, field push naturally reduces.

What Open Data Revealed

Using publicly available datasets:

• population and density data

• panchayat-level information

• NABARD and local administrative data

Combined with:

• organisation’s customer / centre / branch coordinates

We mapped the actual catchment.

What emerged:

• clear white spaces

• villages with no presence

• areas assumed “covered” but not penetrated

  
  

  

  Centre Level Heat Map showing over and underutilized areas

From Insight to Action

We worked with the team to:

• filter and validate potential locations

• create a targeted expansion list

• run physical verification through village surveys

Within a couple of cycles, the outcome was clear:

~30% additional AUM potential within the same catchment

Not through new districts. Not through new branches.

But through better visibility.

What This Changes

This shifts the sourcing problem fundamentally.

From:

• “Where do we grow next?”

To:

• “What are we missing in areas we already operate?”

And importantly:

• reduces dependence on field intuition

• lowers effort required for sourcing

• improves productivity of mature branches

SARTHI Perspective: NBFC Sourcing Strategy

This is embedded in SARTHI’s approach for NBFC sourcing strategy

SARTHI enables:

• structured catchment analysis using public data

• geo-spatial assisted pre-sourcing

• clear identification of white spaces

• integration into branch-level sourcing routines

So sourcing is not left to perception.

It becomes data-backed and repeatable.

SARTHI is an operations framework for NBFCs that improves growth and risk outcomes by strengthening field execution through 300+ defined practices.

To know more: sarthiworks.com