Authors :
Vaivaw Kumar Singh; Dr. Kunal Sinha; Dr. Sandeep Nath Sahdeo
Volume/Issue :
Volume 10 - 2025, Issue 9 - September
Google Scholar :
https://tinyurl.com/ynrwsezp
Scribd :
https://tinyurl.com/4v8mskt8
DOI :
https://doi.org/10.38124/ijisrt/25sep230
Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.
Note : Google Scholar may take 30 to 40 days to display the article.
Abstract :
In recent years, Cholamandalam Investment and Finance Company Limited (CIFCL), a major non-banking
financial company (NBFC) in India, has taken significant strides in digitization and technology-led transformation. This
research examines the time series growth of CIFCL’s technology expenditure over financial years FY 2021 to FY 2024, with
a particular focus on the sharp increase observed in FY 2023 and its continuation into FY 2024. The analysis investigates the
correlation between rising technology investments and tangible customer outcomes, such as improved digital transaction
rates, reduced loan processing times, disbursement volumes, customer satisfaction levels, and overall business efficiency.
Using publicly available financial disclosures, media reports, and company communications, we construct a time series
of technology spending and assess how this correlates with key performance indicators in customer service and operational
performance. The data reveals that CIFCL increased its technology budget by approximately 43% in FY 2022–23, deploying
funds into automation, artificial intelligence, big-data analytics, cloud optimization, cybersecurity, and paperless workflows.
These initiatives directly contributed to measurable improvements in customer experience, product turnaround time, and
financial performance in FY 2024, including a 33% growth in disbursements and 35% increase in Assets Under
Management (AUM).
This study highlights the strategic value of tech investments for NBFCs in India and emphasizes the importance of
aligning digital transformation initiatives with customer-centric outcomes. It concludes by recommending a structured ROI-
based framework for evaluating future technology investments, especially in the rapidly evolving financial services
landscape.
Keywords :
Time Series Analysis, Technology Spending, CIFCL, Digital Transformation, Customer Outcomes.
References :
- Cholamandalam Investment and Finance Company Limited. (2024). Annual Report FY 2023–24. Retrieved from https://www.cholamandalam.com
- TechCircle. (2023, August 8). Spend IT: Non-bank lender Cholamandalam ups IT budget by 43%. Retrieved from https://www.techcircle.in/2023/08/08/spend-it-non-bank-lender-cholamandalam-ups-it-budget
- The Hindu BusinessLine. (2024, April 27). Chola Investment posts 33% growth in disbursements. Retrieved from https://www.thehindu.com/business/chola-investment-posts-33-growth-in-disbursements/article68036185.ece
- DCFModeling.com. (2024). Cholafins VRIO analysis. Retrieved from https://dcfmodeling.com/products/cholafinns-vrio-analysis
- Value Research Online. (2024). Cholamandalam’s Tech Spending Rises 22% YoY in FY25. Retrieved from https://www.valueresearchonline.com
- PwC India. (2022). The future of NBFCs in India: New horizons. Retrieved from https://www.pwc.in
- EY. (2023). Technology trends in Indian financial services. Retrieved from https://www.ey.com/en_in/financial-services
- Deloitte India. (2022). Reimagining digital transformation in NBFCs. Retrieved from https://www2.deloitte.com/in
- Reserve Bank of India. (2023). Report on Trend and Progress of Banking in India 2022–23. Retrieved from https://www.rbi.org.in
- Financial Express. (2024, May 2). NBFCs growing faster than banks; digital push and rural demand lead the way. Retrieved from https://www.financialexpress.com
- McKinsey & Company. (2021). Digital disruption in Indian financial services: A $45 billion opportunity. Retrieved from https://www.mckinsey.com
- Livemint. (2023, March 14). Cholamandalam expands into consumer and SME lending via digital platforms. Retrieved from https://www.livemint.com
- Accenture. (2022). Driving digital transformation in financial services. Retrieved from https://www.accenture.com
- NASSCOM. (2021). Fintech in India: A USD 100 billion opportunity. Retrieved from https://www.nasscom.in
- World Economic Forum. (2020). Shaping the future of financial services: Digital transformation. Retrieved from https://www.weforum.org
- Infosys Finacle. (2022). The digital maturity of NBFCs in India: Gaps and opportunities. Retrieved from https://www.edgeverve.com
- KPMG India. (2022). Digital-first NBFCs: Winning strategies in lending. Retrieved from https://home.kpmg/in
- Indian Brand Equity Foundation (IBEF). (2023). Financial services industry in India. Retrieved from https://www.ibef.org
- Business Standard. (2023, November 21). CIFCL sees tech as growth enabler, not just efficiency tool. Retrieved from https://www.business-standard.com
- Gartner. (2021). Top 10 trends in data and analytics for 2021. Retrieved from https://www.gartner.com
- Economic Times. (2024, January 19). Digital lending market in India to touch $350 billion by 2025: Report. Retrieved from https://economictimes.indiatimes.com
- Murugappa Group. (2023). CIFCL corporate profile. Retrieved from https://www.murugappa.com
In recent years, Cholamandalam Investment and Finance Company Limited (CIFCL), a major non-banking
financial company (NBFC) in India, has taken significant strides in digitization and technology-led transformation. This
research examines the time series growth of CIFCL’s technology expenditure over financial years FY 2021 to FY 2024, with
a particular focus on the sharp increase observed in FY 2023 and its continuation into FY 2024. The analysis investigates the
correlation between rising technology investments and tangible customer outcomes, such as improved digital transaction
rates, reduced loan processing times, disbursement volumes, customer satisfaction levels, and overall business efficiency.
Using publicly available financial disclosures, media reports, and company communications, we construct a time series
of technology spending and assess how this correlates with key performance indicators in customer service and operational
performance. The data reveals that CIFCL increased its technology budget by approximately 43% in FY 2022–23, deploying
funds into automation, artificial intelligence, big-data analytics, cloud optimization, cybersecurity, and paperless workflows.
These initiatives directly contributed to measurable improvements in customer experience, product turnaround time, and
financial performance in FY 2024, including a 33% growth in disbursements and 35% increase in Assets Under
Management (AUM).
This study highlights the strategic value of tech investments for NBFCs in India and emphasizes the importance of
aligning digital transformation initiatives with customer-centric outcomes. It concludes by recommending a structured ROI-
based framework for evaluating future technology investments, especially in the rapidly evolving financial services
landscape.
Keywords :
Time Series Analysis, Technology Spending, CIFCL, Digital Transformation, Customer Outcomes.
