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Fostering Digital Revolution in Banking

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The spread of digital technologies in banking sector helps the sector grow phenomenally and being a cooperative bank, we are paying extra attention to innovative IT solutions, Manisha Raodeo, CEO, Greater Bombay Co-Operative Bank tells Poulami Chakraborty of Elets News Network (ENN)

How efficiently has IT been utilised in your areas of operation?

Manisha Raodeo CEO, Greater Bombay Co-Operative Bank

Manisha Raodeo
CEO, Greater Bombay Co-Operative Bank

Unlike other industries, banks and nancial institutions rely on gathering, processing, analysing and providing information in order to meet the needs of customers. At Greater Bank, IT plays an important role as it has helped us to deal with the challenges of the new economy. We are the rst cooperative bank to oer an E Lobby at all our branches getting us the title of “Raat Din ka Bank”. Technology has allowed us to oer new products and new services to our customers through introduction of multi functional ATMs, biometrics, ECS, cheque truncation systems, NEFT & RTGS, mobile banking etc which are just few examples. IT has been the cornerstone of our banks oerings which aimed at increasing the speed and reliability of banking operations.

What are the new technological innovations which will transform the Indian banking sector?

Mobile banking has created a revolution and oering nancial services on digital platform will be the future. Reach of ‘mobile phones’ in the hinterlands of India has created new opportunities to deliver financial services up to grassroot level. Documents will be processed online, due diligence can be done online and that too transparently and quickly. RBI has been positive in terms of the payments banks, the KYC (know your customer) regime, coupled with the Aadhaar card (IRIS scans and biometric identication) that has created new possibilities not available earlier. e other big area is data analytics—credit underwriting mechanisms are going to change quite dramatically in India.

At Greater Bank, IT plays an important role as it has helped us deal with the challenges of the new economy. We are the first cooperative bank to offer an e-Lobby at all our branches getting us the title of ‘Raat Din ka Bank’. IT has been the cornerstone of our banks offerings which aims at increasing the speed and reliability of banking operations

What is your view on PMJDY? How effective has this initiative been with respect to the Indian economy?

e lobbyPMJDY is no doubt the largest nancial inclusion programme of in the world. e objective of this programme is to ensure nancial services to the unbanked population of India and enable the last mile reach of government schemes. More than 20 crore accounts have been opened till date and it has been fairly successful in reaching out to the masses. 86 per cent people who have opened PMJDY accounts are rst time account holders. Only 45 per cent of these account holders have Aadhaar card numbers linked to their PMJDY accounts to get benet of Direct transfer from the government and only 18 per cent have RuPay Cards available. Having crossed the rst hurdle the challenge now is to ensure regular use of these accounts.

What are the various initiatives undertaken by the Greater Bombay Cooperative Bank in implementing the PMJDY scheme?

Our bank with its vintage of over 63 years has always been at the forefront of driving programmes on nancial inclusion. e ‘No Frills account’ introduced by RBI some years ago was one such initiative we have driven and we have more than 5500 accounts under this scheme. Under the PMJDY, PMJJBY and PMSBY we have garnered more than 4800 accounts from our 22 branches in Mumbai, Navi Mumbai and ane network.

What are the challenges faced while operating in Tier II and Tier III cities?

e coming phase will see a boom of economic activities in Tier II and Tier III cities. But low customer awareness and low nancial literacy pose the biggest challenge for channelising savings into banking in these cities. As regional languages dominate in these locations banks should ensure that their product/service oerings support this on mobile phones and ATMs by increase in usage of vernacular content.

Apart from the government initiatives, what kind of initiatives should be taken by private banks?

Government initiatives alone will not be sucient. Banks will need to look at a comprehensive digital strategy to understand consumer behavior, build technical capabilities, manage their product portfolio, and re-dene their marketing strategies and channel mix to integrate online and oine eectively. e biggest challenge posed today is the last mile reach of cash which needs to be replaced with more and more cashless options to enable inclusion in its real sense.

With increase usage of Internet via smartphones online shopping, virtual cards, e wallets and new banking apps are fast creating the nancial awareness. e need now is to create the nancial discipline. Measuring and tracking the impact of banking transactions on all dimensions of the economy and society are not simple and direct, but the potential is immense and will continue to grow in the future. Individual consumption, corporate infrastructure investment and government spending contribute to the cause.

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