How a Financial Institution Reduced EMI Default Rates Using Cligence – The Smart Lock Master & Device Locker

Overview

This case study explores how a leading financial services institution successfully reduced its loan default rates by deploying Cligence’s Lock Master, a powerful Device Locker solution. With a large customer base purchasing smartphones on EMI, this institution faced a growing challenge: what happens when payments stop?

To protect their investment, the organization needed a secure, reliable, and automated EMI phone locking solution that could restrict device usage if the customer defaulted. Cligence, through its Lock Master system, delivered a seamless and scalable solution that is now regarded as an essential mobile loan enforcement software for financial institutions.

About the Client

The client is a well-established NBFC (Non-Banking Financial Company) in India that provides smartphones on EMI to low and mid-income consumers. They finance over 10,000 devices per month, mostly Android-based smartphones.

Their top concerns included:
  • Rising EMI defaults on financed devices
  • Difficulty recovering dues from unreachable customers
  • Loss of control after the device leaves the store
  • No centralized system to manage or monitor the loaned phones

Once the smartphones were sold and in the hands of consumers, there was no control mechanism in place. Customers who defaulted were often unresponsive, and recovery teams struggled to get devices or dues back.

The company needed:
  • A remote Device Locker system to restrict usage on non-payment
  • A platform that could scale across thousands of Android phones
  • A solution that was secure, cloud-based, and easy to deploy
  • A Lock Master interface for support agents and loan officers to manage locked/unlocked status quickly

They sought a solution purpose-built for EMI enforcement on Android smartphones—something that could also deter non-payment while maintaining a good customer experience.

Cligence stepped in with its highly effective Lock Master platform, tailored for financial institutions offering device-based loans. The system acts as a centralized Device Locker that can remotely lock any Android device linked to an unpaid loan.

Core Features Used:
  • Remote Phone Locking System: Devices are locked automatically if a payment is missed
  • Custom Lock Screen: Shows the customer a branded message with payment details and contact support info
  • Offline Locking Capability: Lock commands work even when the device is temporarily offline
  • Cloud Dashboard: Loan agents manage thousands of devices via a web portal
  • Multi-User Roles: Admin, loan officer, and support agent access levels
  • Geolocation Tracking: Helps with locating and contacting customers
  • Unlock on Payment: Devices are unlocked in real time once the payment is confirmed

The Cligence-LockMaster team collaborated with the enterprise’s internal IT department to ensure a smooth rollout.

  • Step 1: Integration with Loan Management System

    Cligence integrated the Lock Master backend with the institution’s loan disbursal and payment tracking software. This enabled automatic locking triggers based on EMI status updates.

  • Step 2: Device Enrollment at Point of Sale

    Each financed device was enrolled in the Cligence Device Locker system at the time of sale. IMEI numbers and loan IDs were synced into the cloud dashboard.

  • Step 3: Communication Setup

    A custom lock screen was configured for branding, providing payment instructions and a helpline number to guide customers on how to resolve the issue.

  • Step 4: Training Loan Recovery Teams

    Field agents and customer support teams were trained to use the Lock Master dashboard to monitor status, respond to unlock requests, and escalate issues as needed.

Results:

📉 65% Reduction in EMI Default Rate Within 90 Days
After deploying the Cligence Device Locker, EMI defaults dropped significantly. The fear of being locked out of the phone proved to be a powerful motivator for timely payments.
📲 Over 50,000 Android Devices Managed Seamlessly
With Cligence’s scalable platform, the company quickly onboarded over 50,000 devices across India, with real-time status visibility and actionable insights for every customer.
⏱️ 70% Faster Recovery Process
Thanks to the Lock Master platform, the average time taken to recover or regularize a defaulted EMI dropped from 10 days to 3 days. This greatly improved cash flow and customer communication efficiency.

Testimonial

Why Cligence Lock Master is the Best Device Locker for Financial Institutions

  • ✅ EMI Enforcement Made Simple: The system automatically locks phones if EMI is not received by the due date. Once payment is done, unlocking takes seconds—either manually or automatically through API integration.
  • ✅ Protects Devices, Preserves Relationships: Unlike aggressive recovery tactics, this remote phone locking system creates accountability while keeping customer relationships intact.
  • ✅ Scalable and Cloud-Based: Whether you have 100 or 100,000 customers, Cligence offers unmatched reliability and flexibility for your device loan operations.
  • ✅ Secure and Tamper-Proof: The Device Locker can't be bypassed with a simple factory reset or by switching SIMs—ensuring real control.
Related Use Cases:

While this case study focuses on financial institutions, Cligence’s Lock Master is also used for:

  • Telecom operators offering phones on contract.
  • Retailers providing in-store finance.
  • Micro-lenders targeting underserved communities.
  • Educational institutions lending tablets or mobile devices.

In all scenarios, Cligence provides a trusted and proven mobile device control for finance and beyond.

Final Thoughts

This case study clearly shows how Cligence, through its Lock Master system, revolutionized how financial institutions manage device-based loans. By offering a smart, automated, and customer-friendly Device Locker, Cligence has empowered lenders to stay in control, reduce risk, and improve repayment rates. If you're in the business of financing smartphones or devices, it’s time to protect your assets with Cligence’s leading mobile phone locking technology.
Ready to secure your EMI phones?
👉 Contact us today to book a demo of Cligence Lock Master – the ultimate Device Locker for smart EMI protection.