How Cloud Helped CGTMSE Achieve 87% Top-Line Growth
Harish Gupta of CGTMSE on Addressing Turnaround Time and Resource Scaling Issues
The cloud computing landscape is constantly evolving. Cloud providers are increasingly tailoring their offerings to specific industry verticals, such as healthcare, finance and retail. Credit Guarantee Fund Trust for Micro and Small Enterprises' (CGTMSE) journey to cloud has led to several advantages in the credit delivery system.
In an exclusive interview with Information Security Media Group, Harish Gupta, head of IT, CGTMSE, discussed how cloud is helping the credit lender achieve efficiency and scalability to improve efficiencies, helping its micro, small and medium enterprise (MSME) customers secure loans faster.
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Edited excerpts follow:
Can you share CGTMSE's digital journey, and how cloud propelled new services for MSMEs post-pandemic?
CGTMSE's key role involves managing various government schemes in India, catering to non-banks, banks and entrepreneurs. Before the pandemic, we operated with an on-premises IT setup, limiting our ability to scale and manage IT infrastructure or platforms on demand. When special government schemes were launched during COVID-19, our existing infrastructure posed challenges in scaling applications and accommodating these new schemes promptly. This underscored the necessity of a flexible and scalable IT infrastructure to effectively adapt to future changes.
The solution was transitioning all our workload from on-premises to the cloud, where we could spin off any instance or virtual machine (VM) in a well-validated, secure environment. Cloud adoption helped enhance operational efficiency, improving time-to-market for new schemes and addressing resource scaling issues during peak periods.
How did you address the migration challenges to build future-proof resilience?
Meticulous planning, strong communication with Oracle consultants, and prioritizing security throughout the process proved critical in ensuring successful migration. We adopted a phased approach to system migration, prioritizing gradual transitions to prevent disruptions. The strategy included rigorous testing, comprehensive employee training and real-time monitoring to ensure a seamless transition. Migrating to Oracle Cloud helped resolve data transfer challenges we faced previously, aligning applications with Oracle's database parameters. We successfully migrated our entire infrastructure to cloud within four weeks.
What are the benefits and efficiency of transitioning to the cloud?
Embracing cloud has been a game-changer. We realized substantial savings with the implementation of Oracle ATS, which helped optimize various aspects of the loan processing workflow. Cloud enabled the automation of loan processing and claim assessments, which helped reduce the turnaround times significantly. It also streamlined our operations and resulted in significant cost savings.
Meanwhile, the improvement in approval rate for loans has directly impacted CGTMSE's revenue. The company witnessed a five-fold growth, enabling us to increase loan sanctions from INR 100 crore to INR 500 crore a day. We also reached the INR 1 lakh crore loan guarantee mark within seven months compared to the entire FY23 combined. Collectively, these improvements have contributed to an 87% increase in the top line within a year.
With a career spanning more than two decades, Gupta has a profound understanding of the information technology landscape. His expertise spans diverse industries, making him a pivotal force in guiding organizations to success through technological advancements. He has played an instrumental role in strategic planning, spearheading digital transformation and seamlessly integrating cutting-edge solutions.
