2018:Dig­i­tal Direc­tions & trans­for­ma­tion

Bank­ing Fron­tiers or­ga­nized a round ta­ble on the theme ‘2018: Dig­i­tal Direc­tions and Trans­for­ma­tion’ with se­nior IT pro­fes­sion­als from banks and fi­nan­cial ser­vices in­sti­tu­tions par­tic­i­pat­ing in the de­lib­er­a­tions. High­lights:

Banking Frontiers - - Conference Report - ravi@glo­cal­in­fo­mart.com

Prasanna Lo­har, Head-Tech­nol­ogy In­no­va­tion & Ar­chi­tec­ture, DCB Bank: Hy­per per­son­al­iza­tion will be the next big thing in the com­ing 2-3 years in the BFSI in­dus­try. To­day, we are work­ing in col­lab­o­ra­tion with dif­fer­ent part­ners, but in the fu­ture, most of the things will be fast and au­to­matic, and there will be fewer part­ners for car­ry­ing out dig­i­tal ac­tiv­i­ties.

The right dig­i­tal ar­chi­tec­ture min­i­mizes the gap to go into the mar­ket.

For check­ing the back­ground of a cus­tomer for loan ap­proval, there are al­ter­nate chan­nels com­ing up apart from the CIBIL score like be­hav­iour of the cus­tomer in dif­fer­ent so­cial me­dia plat­forms. Brick and mo­tor model will al­ways be there, but there is a need for com­bi­na­tion of on­line and off­line plat­forms to pro­vide ef­fi­cient ser­vice to the cus­tomers.

BFSI in­sti­tu­tions need to work hand in hand with fin­tech com­pa­nies. In fact, the govern­ment of In­dia is the big­gest startup in the coun­try. The govern­ment is sup­port­ing fin­techs. In Ma­ha­rash­tra, the govern­ment has launched its fin­tech pol­icy to sup­port fin­tech com­pa­nies, Andhra Pradesh govern­ment has launched Vizag fin­tech val­ley and other states like Gu­jarat are also help­ing the fin­techs.

Fin­tech com­pa­nies need to fo­cus on ben­e­fi­cial ac­tiv­i­ties for the coun­try and over­all in­dus­try. There is big gap be­tween In­dia and other coun­tries in adop­tion of fin­tech tech­nol­ogy. Star­tups have an edge over big IT com­pa­nies like In­fosys, Mi­crosoft and Ac­cen­ture.

The com­pa­nies are hir­ing spe­cial­ized per­sons for se­cu­rity re­lated func­tions and eth­i­cal hack­ers to do the test­ing. Hir­ing em­ploy­ees with good dig­i­tal skills is chal­lenge for most of the com­pa­nies.

The rescal­ing of ex­ist­ing re­sources and man­power are also im­por­tant. Dig­i­tal trans­for­ma­tion is good for In­dia the dig­i­tal In­dia move­ment will bring new things and new busi­ness mod­els will cre­ate more jobs in the com­ing years.

Rishi Aurora, Man­ag­ing Di­rec­tor Fi­nan­cial Ser­vices, Ac­cen­ture in In­dia: Ac­cen­ture has been in the fore­front of dig­i­tal trans­for­ma­tion in In­dia. For us, dig­i­tal means cus­tomer and data. Or­ga­ni­za­tions which un­der­stand and an­a­lyze the data and use it for spe­cific per­son­al­ized cam­paigns are the suc­cess­ful or­ga­ni­za­tions. Based on struc­tured and un­struc­tured data,

com­pa­nies can cus­tom­ize their cam­paigns. Dig­i­tal trans­for­ma­tion is a very im­por­tant as­pect for banks and NBFC in In­dia.

Son­ali Kulka­rni, Man­ag­ing Di­rec­tor, Ac­cen­ture Con­sult­ing: Cus­tomers, en­ablers, reg­u­la­tors, govern­ment and sys­tem part­ners like fin­tech play­ers have con­trib­uted to the growth of dig­i­ti­za­tion in In­dia’s fi­nan­cial sec­tor. BFSI com­pa­nies should be able to use the un­struc­tured data to make per­son­al­ized of­fer­ings to the cus­tomers. Banks should de­sign pro­cesses that are au­to­mated and that do not need any hu­man in­ter­ven­tion. The per­son who gets im­pacted most due to the dig­i­tal trans­for­ma­tion is the em­ployee of the or­ga­ni­za­tion. It is dif­fi­cult for big­ger or­ga­ni­za­tions to adopt the tech­nol­ogy changes due to the le­gacy is­sue from the tech­nol­ogy prospec­tive, es­pe­cially the dig­i­tal changes.

Anand Pe­jawar, Pres­i­dent Op­er­a­tions, IT & In­ter­na­tional Busi­ness, SBI Life In­sur­ance: Re­cently SBI Life In­sur­ance has launched UNO, or ‘U Need Only One’ an app us­ing which cus­tomers can do bank­ing trans­ac­tions, life and gen­eral in­sur­ance trans­ac­tions, mu­tual fund and credit cards trans­ac­tions. They can also do the shop­ping with the app.

Mar­ket­ing is a sci­ence and dig­i­tal is go­ing to help mar­ket­ing in a very big way. SBI Life In­sur­ance is the only com­pany in In­dia, which has in­tro­duced a mul­ti­lin­gual web­site – the con­tent is in fact in 9 lan­guages and view­ers can con­vert the web­site as per their re­quire­ment. We have also in­tro­duced our chat­bot ‘Riya’ which is a text-based plat­form. We will make Riya voice-en­abled soon and in­te­grate Alexa on this plat­form.

Suresh Shan­mugam, Head In­no­va­tion & Fu­ture Tech­nol­ogy busi­ness in­for­ma­tion tech­nol­ogy so­lu­tions, Mahin­dra & Mahin­dra Fi­nan­cial Ser­vices: There is need for BFSI in­sti­tu­tions to move from cor­po­rate dig­i­tal to per­sonal dig­i­tal. Af­ter de­mon­e­ti­za­tion, there is rise in the money lenders’ busi­ness. They are pro­vid­ing loans in 1 minute and their busi­ness model is pro­gres­sive in na­ture. In ru­ral In­dia, there are banks, fi­nan­cial in­sti­tu­tions and reg­u­la­tor on one side, and cus­tomers on the other side. The ru­ral cus­tomer pays com­mis­sion to the agents, bro­kers and other in­ter­me­di­aries for any loans. The dig­i­tal chan­nels may not be vi­able and ef­fec­tive un­less the in­ter­fer­ence of the mid­dle man is stopped. For tar­get­ing ru­ral In­dia, com­pa­nies need to cap­ture the emo­tions of the peo­ple. They need to de­velop be­hav­iour-based au­then­ti­ca­tion and ap­pli­ca­tions.

K. Suresh, SVP - IT, Tata AIG Gen­eral In­sur­ance: In­sur­ance prod­ucts are mainly force driven, but this trend is chang­ing in the last 3-4 years. In fu­ture, there will be de­mand for term in­sur­ance among the cus­tomers. In the past, we had in­tro­duced telem­at­ics ser­vice in mo­tor and health in­sur­ance prod­ucts. There is OBD de­vice in­stalled in cars and based on the us­age of the car, the in­sur­ance pre­mium gets cal­cu­lated. Sim­i­larly, for health in­sur­ance the in­sur­ance pre­mium gets cal­cu­lated de­pend­ing on how much the per­son walks.

Biswabrata Chakra­vorty, CTO, In­dusInd Bank: In­dusInd Bank does not in­vest in tech­nol­ogy heav­ily. We in­vest in tech­nol­ogy as per our busi­ness re­quire­ments. We are work­ing on both pri­vate and pub­lic cloud set-up. We are also mov­ing to open source, and we have ap­pointed a steer­ing com­mit­tee to re­view and mea­sure all the IT ex­penses. Re­cently, Bharat Fi­nan­cial In­clu­sion merged with us and this en­tity is now a com­pletely dig­i­tal en­abled com­pany. We are try­ing to move to en­ter­prise ware­house model to pro­vide con­ve­nience to our cus­tomers.

K.R.C. Murty, Group CIO, Deutsche Bank: There are many dig­i­tal so­lu­tions avail­able, but they are not cheap. Fin­tech com­pa­nies in In­dia needs to un­der­stand their com­peti­tors and part­ners and the way ahead for them. Deutsche Bank has de­vel­oped in­ter­nal chat­bots for pro­vid­ing sug­ges­tions with re­gards to work pro­cesses and op­er­a­tions.

Vi­jay Ragha­van, SVP - Risk Man­age­ment & Fraud Mon­i­tor­ing: In­dus­try needs peo­ple with higher cal­i­bre to do the job rather than de­pend­ing on the ma­chines.

Rimpi Bha­tia, Chief Man­ager, ICICI Pru­den­tial Life In­sur­ance: Dig­i­tal mar­ket­ing is the way for­ward and ICICI Pru­den­tial is into it. Buy­ing of an in­sur­ance pol­icy should be as quick as we are pur­chas­ing a fixed de­posit plan on­line.

Bhaskar Jutti, CIO, SBI Life In­sur­ance: Life in­sur­ance com­pa­nies in In­dia have 1% to 0.5% of the GWP and in the last few years we have seen an in­crease. There is a wide range of dif­fer­ence in the in­vest­ment pat­tern of life in­sur­ance com­pa­nies in dig­i­tal tech­nol­ogy. Some com­pa­nies are in­vest­ing huge amounts, and some are not. Some of the com­pa­nies like us are in­vest­ing in tech­nol­ogy with­out think­ing about ROI. More than ROI, we look af­ter the ra­tio of the IT spends. We have fast track ap­proval process for adop­tion and ap­proval of new tech­nol­ogy.

Rahul Pu­ran­dare, DVP - Prod­uct Man­age­ment, IDBI Fed­eral Life In­sur­ance: Cus­tomi­sa­tion in­creases the cost to the com­pany. Cus­tomers in banks and in­sur­ance com­pa­nies buy the prod­ucts dif­fer­ently. They first buy the com­pany than the prod­uct. Things like trust and con­ve­nience are im­por­tant for the cus­tomers. We need to iden­tify the ar­eas in which cus­tomiza­tion needs to be done ef­fec­tively and at low cost.

Panel dis­cus­sion in progress

Panelists de­bate a point

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