AU Finance India Pvt Ltd: Empowering Financial Inclusion

AU Finance India Pvt Ltd, now operating as AU Small Finance Bank, is a significant player in the Indian financial landscape, known for its focus on serving underserved and unbanked segments. While currently a bank, its journey began as a non-banking finance company (NBFC), AU Financiers (India) Limited, demonstrating its commitment to financial inclusion since its inception.

The company distinguished itself by providing financing solutions to individuals and businesses often overlooked by traditional banking institutions. This included self-employed individuals, micro and small enterprises (MSEs), and rural communities. AU Finance built a strong foundation by offering vehicle loans, particularly for commercial vehicles, construction equipment, and used vehicles. This catered to a critical need in the transportation and infrastructure sectors, empowering entrepreneurs to acquire assets and grow their businesses.

A key differentiator of AU Finance was its deep understanding of the local markets and customer needs. They established a widespread network of branches, primarily in rural and semi-urban areas, allowing them to reach customers directly and provide personalized service. This proximity enabled them to assess creditworthiness effectively and offer tailored financing solutions, fostering trust and long-term relationships. They also heavily invested in technology to streamline operations and enhance customer experience. This blend of traditional banking practices with innovative technology allowed them to efficiently manage risk and scale their operations.

Recognizing the limitations of operating solely as an NBFC, AU Finance pursued a banking license to broaden its service offerings and enhance its credibility. This strategic move aimed to provide a more comprehensive range of financial products and services, including savings accounts, current accounts, and other banking facilities. In 2017, AU Small Finance Bank commenced operations, marking a significant milestone in its evolution.

Even as a bank, AU Small Finance Bank continues to uphold its original mission of financial inclusion. It leverages its expertise and infrastructure built as AU Finance to serve its core customer base. They continue to offer vehicle loans and other financing solutions, while also expanding into areas like affordable housing finance and SME lending. Furthermore, they offer digital banking services, enabling convenient access to financial services for customers in remote locations.

AU Small Finance Bank, formerly AU Finance, stands as a testament to the power of focused financial inclusion. By understanding the unique needs of underserved segments and providing tailored financial solutions, they have played a crucial role in empowering individuals and businesses, contributing significantly to economic growth and development in India.