BFSI VISION Branch Transformation

   
 


Dr. N. Rajendran

CTO, NPCI

Digitalisation and virtualisation–The key to smart banking

Business and process challenges in Branch Transformation
Transformation started from the 1990's, one challenge is that we are trying to transform manual into computerized process. On the contrary bankers are also reluctant to these process changes.

For instance, during festive occasions a particular state's banks are closed and if the customer has to do transaction, the transaction cannot be processed due to the non- functioning of the bank. I believe service branch concept should be removed. As per my knowledge, banks worldwide have just one branch per city along with a huge number of customers across the country. The transformation now has become virtual completely. Only cash deposits are the crucial part in banks the rest services can be done digitally. Technology has created a platform that gives away the physical presence of the branch. Everything is driven by the system, everything depends on the branch staff how he uses this technology and how well he knows the process. Now customers are demanding the banks to operate 24/7 to fulfill their transaction needs. Banks should use technology optimally this will also save their infrastructure cost and increase their profits. This change will happen gradually and all the operations can be done virtually.

Designing the roadmap to transformation
It is a slow process, once customers are aware of the benefits in digital form then acceptance will increase. Bankers can increase the productivity by using the manpower and taking the decisions quickly about the customers based on the information available about the user's past transactions. Bankers can increase productivity by using the manpower effectively.

Key business drivers

  • Use resources optimally
  • Emphasize on new models
  • Creating awareness among the customers about new services
  • Training the bank staff

Technology perspective
The customer demand now is anywhere-anytime transaction. Customers now want to use services at their convenience even when it comes to using bank services. So there should be user-friendly services keeping in mind the security of the customers. Banks now are also adopting newer technologies in order to provide good and quick services. Security should also be reduced to regular customers depending on their transactions. Mobile transaction will definitely be the future that is why banks are trying hard to innovate new applications for people who have smartphones or for people who do not own smartphones in order to keep in pace with the running trends. Digital banking will be the face of the future and banks have to gear up for all the upcoming changes.