In a noteworthy strategic pivot, Shriram Finance, one of India’s leading retail NBFCs, has announced a sharpened focus on in-house technology development pushing its build-to-buy ratio to 80:20. The move signals a clear intent to own the technology stack, enhance product agility, and deepen customer-centric innovation.
As per the company’s top tech executives, the goal is to build a future-ready digital core that not only supports scalability but also ensures real-time adaptability in India’s fast-evolving financial landscape.
Why It Matters
This transition reflects a growing industry trend where financial institutions move away from generic, off-the-shelf platforms toward custom-built, modular ecosystems a shift driven by the need for speed, flexibility, and competitive differentiation.
Shriram’s digital strategy, executed under the guidance of CTO V G Sundar, is anchored in:
In-house development of key systems including loan management, collections, and onboarding workflows.
Cross-functional integration with business and operations for faster deployment and feedback cycles.
Use of low-code platforms and agile methods to accelerate delivery without increasing dependency on third-party vendors.
Strategic Implications
For the broader financial ecosystem, this strategy marks a significant acceleration of tech maturity in the NBFC sector. Unlike banks, NBFCs have traditionally relied more on outsourced systems. Shriram’s build-first model sets a new precedent.
Key Takeaways:
Enhanced Product Control: Enables Shriram to iterate and launch new offerings faster.
Data Ownership: Direct control over customer and operational data enhances analytics and risk profiling.
Cost Efficiency: Reduces long-term vendor dependency and licensing overheads.
Scalability: Supports future growth across tier 2/3 markets through localized tech innovations.
RURASH Viewpoint
At RURASH Financials, we see this as part of a larger industry transformation, where financial service providers are evolving into digital-first, tech-enabled institutions.
This shift is not only about technology it’s about redefining operational agility, deepening customer relationships, and building scalable infrastructure for the next wave of financial inclusion.
For investors, partners, and stakeholders, this is a clear indicator that:
The next phase of NBFC evolution will be led by tech-native capabilities.
Fintech-NBFC convergence is no longer optional it is the standard.
Final Thought
Shriram Finance’s bold push toward in-house technology underscores a broader industry message: Innovation is no longer outsourced it’s engineered from within.
As the financial ecosystem becomes more integrated with tech, firms with strong internal digital capabilities will be best positioned to lead in customer experience, speed, and scale.