| |June 20199CIOReviewoperators (like VISA), international payment systems (like SWIFT). Its unified payments interface (UPI) is unique global because it enables request or sending money using account number+ IFSC code, virtual payments, QR code etc. Besides the traditional commercial banks, payment banks, method of funds movements between persons or entities, electronic payment systems like NEFT/RTGS have revolutionised & routine the payment within India. These developments coincided well with the government's initiative of digital Indian and financial inclusion. The trio of Jandhan accounts, aadhaar, mobile widened financial inclusions. Digital VillagesFurther banks adopted entire villages to digitise angle, 100 percent financial inclusion and digitalisation of retail and commercial payments, banking transactions are achieved; converting to cashless society and credit facilities. A holistic approach to development of rural India was envisaged through the digital banking route. The first village was Akodara (Gujarat) pledged to transform 600+ villages into digital villages and so on.Robot, AI & AnalyticsIntroduction of Robotics in customer facing situations for better performance than human officials. New Robot customer care executive named Mitra (Canara offered) answered over 500 frequently asked customer queries in Kannada and security guard in the night. Robot customer care executive Lakshmi (City Union offered) offered details about accounts, interest rates, loans etc. in English and carriers out an average of 30-40 customers' interaction a day and answered about 150 questions. I-Pal (ICICI offered) offers help on FAQs, paying bills, fund transfers, recharge etc. features. EVA (HDFC offered) launched to provide conversational experience to customers including access to products and processes details, charges, branch data etc. Yes-Tag Chabot apps & Yes-mPower system (Yes Bank offered) to seamlessly engage in chat banking on messaging platforms including Facebook and Twitter. Chabot (SBI offered) aimed to handle customer queries and guide customers through retail products and services. The bank is looking at AI solutions based on speech recognition. Bank have started for APIs/open banking solution to connect third party and help from financial planning to choosing products across banks, in anticipation of possible regulatory clearance. A handful of banks have implemented Blockchain- distributed ledger technology for trade finance and remittances to the customers. Also, involved with crowd funding platforms like TReDS (trade receivables discounting system).Bank have started using AI and analytics in big way such as preliminary CRM packages (customer behaviour, expenditure patterns, internet bank accessing and non-transactional related data's) to support and enhance customer experience, business prospect, employee productivity and create risk management models. There are internal systems to assist the sales team, HR, monitoring and credit appraisal. ChallengesCustomer data breach, cyber- attack, hacking of trading accounts, siphoning of funds are major risk for Information technology world. IOT i.e. many devices like TV, washing machines networked on the same internet provider's effect weak points on the internet for the hackers. After all, overall security depends on the link. RBI also report that developments in increasing digitalisation in banking present regulatory and supervisory challenges too. Due to increase in the channels for provision of finance, both from the banks and non-banks like platform based lending. It also affect bank business models, which in turn could undermine their overall business strategies. The rise of FinTech may leads to fundamentally different bank risk profiles. There is difficulty of regulating an evolving technology with different use cases, monitoring activities outside the regulated sector, and identifying and monitoring new risks arising from the technology. Many of international standard bodies like BCBS, FSB, CPMI, WBG, FIN etc. have just started taking steps to actively monitor FinTech developments. Task force has been setup to identify, assess the risks arising from the digitalisation of finance with a focus on the impact of financial technology on banks business models, the provision of finance and systematic risk as well as associated supervisory challenges. World Bank Group (WBG) is actively participating with all the above bodies.Conclusion Most banks make it a point to describe the digital initiatives taken by them, including the success or progress in expanding the channels, products, innovative internal and customer facing services offered etc. in the annual reports. Add-on, describes the advanced application of technology to make the banking digital & transformation lives. (Taking India to new heights) Thus in the days when the performance under core banking is under stress, this helps in demonstrating the positive steps taken by the banks in the digital area. After all digital transformation will also help the bank in improving financial performance ultimately. Sourabh Tiwari
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