George Muthoot George : Passion Makes Everything Else Follow
George Muthoot George
Deputy Managing Director
A passionate leader well-known for his philanthropic approach, George is a fourth-generation entrepreneur. He started his professional career with Muthoot Leisure and Hospitality Services in 2002. Over the years, he has garnered a combination of experience in sales, marketing, and management. He completed his UG from ITC Welcome Group Hotel Management College in Manipal and holds an MBA in international hospitality management from Cornell-ESSEC Business School in Paris. Below is an excerpt from our recent exclusive interview with George, wherein he shares his experience, leadership insights and more.
You have been one of the pivotal leaders of the family business over the past more than two decades. What is the motivation that fuels your daily routine after all these years?
My daily motivation stems from my belief that work should not be viewed merely as a task, but as a passion. When I engage in work that excites and inspires me, I feel I am truly doing justice to my role. I focus on aspects of the company that interest me the most, allowing me to become more professionally involved and passionate about my work.
Additionally, I consider the impact of my actions on others. As someone who oversees Corporate Social Responsibility (CSR) within the company, I find immense fulfillment in helping others achieve their goals. This sense of impact and contribution is what truly motivates me, beyond the usual banking and financial responsibilities.
To ensure I maintain this passion, I dedicate at least one hour each day to CSR activities before diving into other tasks. This approach not only fuels my motivation but also reinforces my commitment to making a positive difference in the lives of others.
You have constantly taken the Muthoot Group to new heights. What is your success mantra?
I don't believe in a particular success mantra. Instead, I always say that if you are passionate about some thing, success will naturally follow. On the other hand, success, to me, is not measured by conventional standards or by what others deem successful. From this perspective, I set my own goals and consider myself successful when I achieve them. I don't view success as something to prove to others. Globally, success is often defined by various metrics such as achievements, wealth, or shareholder value. However, I don't abide by these definitions.
I believe success is a personal journey, defined by what brings you the greatest happiness. Once that happiness is achieved, you have succeeded, regardless of your field, be it sports, arts, business, finance, entrepreneurship, or any profession.
People often become unhappy when they let others define their success. True happiness lies in defining your own success and following your unique path to achieve it.
The financial market in India is dynamic and constantly evolving. How do you foresee & analyze potential challenges?
I always believe that what some might call “potential business challenges” are opportunities
waiting to be discovered. Viewing them as threats is a negative approach. Instead, I focus on the opportunities that arise from a constantly evolving landscape.
It's important to identify the direction in which your business should move and comprehend the factors that could influence it. By "influence", I mean recognizing the opportunities that these changes present. This requires a broader perspective on how things operate. It's not just about meeting financial objectives; it's about growing in an ever-changing environment. Whether it's technology, AI advancements, or competition, understanding these changes allows you to see the opportunities they bring.
Adapting and evolving is essential. Focusing solely on financial goals is a shortsighted approach. A holistic approach is necessary to navigate and succeed in this dynamic landscape.
Muthoot caters to both urban and rural parts of the country. What are the major factors behind your offerings creating such an impact?
The most important aspect of our approach at Muthoot Finance is understanding our clients, rather than merely focusing on the products we offer. We operate across various regions, including rural, semi-urban, and urban areas, with a significant presence in rural locations. For decades, through our gold loans, we have empowered many individuals, particularly in rural areas, to transition from being unbanked to participating in the formal financial sector.
Our pioneering efforts in gold loans have set benchmarks, which are now followed by many public sector banks and NBFCs. This deep understanding of diverse client segments, whether they are rural clients, farmers, small and medium-sized entrepreneurs, professionals, or high-net-worth individuals in urban areas, allows us to tailor our products to meet their specific needs.
Affordability and repay ability are crucial. Our goal is not to burden clients with debt but to create products that enable them to repay comfortably and thrive. This client-centric approach has made us one of the most flexible financial institutions in the country.
Our flexibility and understanding of client needs have built significant good will over the years, resulting in a loyal customer base that spans multiple generations. This success is not just about offering financial products but about genuinely empowering our clients. We design our financial products to ensure that clients are not only able to repay their loans but also to achieve their dreams and objectives.
Muthoot has been at the forefront of setting customer experience benchmarks, even in urban settings. How would you describe the approach behind this?
As far as the approach is concerned, we have to talk about technology. Technology plays a crucial role in our operations at Muthoot Finance, especially given the physical nature of gold loans. Traditionally, clients brought their gold collateral to the bank to secure a loan. However, with the rise of delivery culture and the convenience of mobile technology, we have adapted our approach to meet modern expectations.
For instance, we now offer a "loan at home" service, allowing clients to obtain loans from the comfort of their homes or offices. Our team visits the client, assesses the gold, and processes the loan digitally, with funds transferred directly into their bank account. Clients can manage their loan accounts and repayments through our digital app, ensuring a seamless experience.
This digital transformation caters to both our traditional clients, who prefer in-person interactions, and the newer generation, including Millennials and Gen Z, who value convenience. We also offer a "credit builder" product to help
It's important to identify the direction in which your business should move and comprehend the factors that could influence it. By "influence", I mean recognizing the opportunities that these changes present. This requires a broader perspective on how things operate. It's not just about meeting financial objectives; it's about growing in an ever-changing environment. Whether it's technology, AI advancements, or competition, understanding these changes allows you to see the opportunities they bring.
The most important aspect of our approach at Muthoot Finance is understanding our clients, rather than merely focusing on the products we offer
Adapting and evolving is essential. Focusing solely on financial goals is a shortsighted approach. A holistic approach is necessary to navigate and succeed in this dynamic landscape.
Muthoot caters to both urban and rural parts of the country. What are the major factors behind your offerings creating such an impact?
The most important aspect of our approach at Muthoot Finance is understanding our clients, rather than merely focusing on the products we offer. We operate across various regions, including rural, semi-urban, and urban areas, with a significant presence in rural locations. For decades, through our gold loans, we have empowered many individuals, particularly in rural areas, to transition from being unbanked to participating in the formal financial sector.
Our pioneering efforts in gold loans have set benchmarks, which are now followed by many public sector banks and NBFCs. This deep understanding of diverse client segments, whether they are rural clients, farmers, small and medium-sized entrepreneurs, professionals, or high-net-worth individuals in urban areas, allows us to tailor our products to meet their specific needs.
Affordability and repay ability are crucial. Our goal is not to burden clients with debt but to create products that enable them to repay comfortably and thrive. This client-centric approach has made us one of the most flexible financial institutions in the country.
Our flexibility and understanding of client needs have built significant good will over the years, resulting in a loyal customer base that spans multiple generations. This success is not just about offering financial products but about genuinely empowering our clients. We design our financial products to ensure that clients are not only able to repay their loans but also to achieve their dreams and objectives.
Muthoot has been at the forefront of setting customer experience benchmarks, even in urban settings. How would you describe the approach behind this?
As far as the approach is concerned, we have to talk about technology. Technology plays a crucial role in our operations at Muthoot Finance, especially given the physical nature of gold loans. Traditionally, clients brought their gold collateral to the bank to secure a loan. However, with the rise of delivery culture and the convenience of mobile technology, we have adapted our approach to meet modern expectations.
For instance, we now offer a "loan at home" service, allowing clients to obtain loans from the comfort of their homes or offices. Our team visits the client, assesses the gold, and processes the loan digitally, with funds transferred directly into their bank account. Clients can manage their loan accounts and repayments through our digital app, ensuring a seamless experience.
This digital transformation caters to both our traditional clients, who prefer in-person interactions, and the newer generation, including Millennials and Gen Z, who value convenience. We also offer a "credit builder" product to help
young clients establish their credit scores, enabling them to qualify for larger loans in the future, such as housing or vehicle loans.
In addition to gold loans, we are diversifying our portfolio to include personal loans, vehicle loans, home loans, loans against property, and business loans. This expansion transforms us from a gold loan company into a comprehensive financial services provider. By leveraging AI and technology, we ensure that we meet the needs of all client segments and continue to innovate in the financial sector.
Tell us about your leadership approach.
I can boil it down to two words. My leadership approach revolves around "planned redundancy". The essence of this approach is to empower my team members to take charge and make decisions, rather than relying on me as the sole decision-maker. I believe that if someone can do a better job than I can at a particular instance,they should be given the opportunity. By making myself redundant, I can focus on exploring new aspects of the business.
My goal is to ensure that everyone on the team is capable of making decisions and taking responsibility. This contrasts with organizations where bosses are constantly asked for their decisions. I acknowledge that I am not infallible and can make mistakes. Therefore, this planned redundancy methodology ensures that the entire team shares responsibility and accountability, contributing their ideas and expertise. This way, I am not the only one driving the organization forward.
You are also well-known for your philanthropic initiatives. How would you define your approach to CSR?
The Indian government mandates that companies spend 2 percent of their net profits on CSR activities, a regulation in place since 2013. However, our company has always believed in giving back to society, long before CSR became a formal term. We view it as a fundamental human quality to contribute to societal growth, recognizing that no organization or individual can thrive in isolation.
Today, with branches across the country, we ensure our employees are actively involved in CSR activities. Although we occasionally collaborate with NGOs, about 90 percent of our projects are executed in-house to ensure direct benefits to the recipients without intermediaries. We believe in hands-on involvement, regularly monitoring and conducting impact studies to ensure the effectiveness of our initiatives. Beyond CSR, we also promote Individual Social Responsibility (ISR). We encourage our workforce to participate in both corporate and personal community activities.
Despite the government's 2 percent mandate, we often exceed this percentage in our CSR efforts. I advocate for increasing this requirement to 4 percent, believing that the corporate sector can do much more for the community development.
What would be your advice to budding leaders in the financial sector?
If you're going to do something, do it with passion. Leadership is not just about leading, it's also about creating leaders within your team. This aligns with my concept of planned redundancy.
Consider the example of wild geese flying in a V formation. The lead goose creates a slipstream, making it easier for the others to follow. When the leader gets tired, it moves to the back, and another goose takes the lead. Similarly, in leadership, we must be willing to follow as well as lead.
George Muthoot George, Deputy Managing Director, The Muthoot Group
Hobbies: Collecting art, Music & Singing (used to sing in school and college bands), indulging in nature, and Trekking (forest and mountainous treks)
Favorite Cuisines: Regional dishes from different states like Rajasthan and Uttarakhand
Favorite Book: The Lexus and the Olive Tree by Thomas Friedman
In addition to gold loans, we are diversifying our portfolio to include personal loans, vehicle loans, home loans, loans against property, and business loans. This expansion transforms us from a gold loan company into a comprehensive financial services provider. By leveraging AI and technology, we ensure that we meet the needs of all client segments and continue to innovate in the financial sector.
Tell us about your leadership approach.
I can boil it down to two words. My leadership approach revolves around "planned redundancy". The essence of this approach is to empower my team members to take charge and make decisions, rather than relying on me as the sole decision-maker. I believe that if someone can do a better job than I can at a particular instance,they should be given the opportunity. By making myself redundant, I can focus on exploring new aspects of the business.
My goal is to ensure that everyone on the team is capable of making decisions and taking responsibility. This contrasts with organizations where bosses are constantly asked for their decisions. I acknowledge that I am not infallible and can make mistakes. Therefore, this planned redundancy methodology ensures that the entire team shares responsibility and accountability, contributing their ideas and expertise. This way, I am not the only one driving the organization forward.
You are also well-known for your philanthropic initiatives. How would you define your approach to CSR?
The Indian government mandates that companies spend 2 percent of their net profits on CSR activities, a regulation in place since 2013. However, our company has always believed in giving back to society, long before CSR became a formal term. We view it as a fundamental human quality to contribute to societal growth, recognizing that no organization or individual can thrive in isolation.
Today, with branches across the country, we ensure our employees are actively involved in CSR activities. Although we occasionally collaborate with NGOs, about 90 percent of our projects are executed in-house to ensure direct benefits to the recipients without intermediaries. We believe in hands-on involvement, regularly monitoring and conducting impact studies to ensure the effectiveness of our initiatives. Beyond CSR, we also promote Individual Social Responsibility (ISR). We encourage our workforce to participate in both corporate and personal community activities.
Despite the government's 2 percent mandate, we often exceed this percentage in our CSR efforts. I advocate for increasing this requirement to 4 percent, believing that the corporate sector can do much more for the community development.
What would be your advice to budding leaders in the financial sector?
If you're going to do something, do it with passion. Leadership is not just about leading, it's also about creating leaders within your team. This aligns with my concept of planned redundancy.
Consider the example of wild geese flying in a V formation. The lead goose creates a slipstream, making it easier for the others to follow. When the leader gets tired, it moves to the back, and another goose takes the lead. Similarly, in leadership, we must be willing to follow as well as lead.
George Muthoot George, Deputy Managing Director, The Muthoot Group
Hobbies: Collecting art, Music & Singing (used to sing in school and college bands), indulging in nature, and Trekking (forest and mountainous treks)
Favorite Cuisines: Regional dishes from different states like Rajasthan and Uttarakhand
Favorite Book: The Lexus and the Olive Tree by Thomas Friedman