Vol. 19 No. 4 August 2020 `75 Pages 48

U GRO Capital pg 8 of Maharashtra pg 27 SwissRe pg 30 Cosmos Bank pg 38 www.bankingfrontiers.com www.bankingfrontiers.live From SECURITY TRUSTto TRUST

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August 2020 - Vol. 19 No. 4 Newer roles for bank branches Group Publisher : Babu Nair everal banking experts feel what the banking industry had planned for say 5 years from now in terms of operations may have to be implemented just right now, Group Editor : Manoj Agrawal Sfor the pandemic has changed the way banking is done. For the moment it is Editor : N. Mohan an interregnum before banks wanting to survive would be required to get into action and put the new normal in practice. One indication of the things to come is the extent to which banking services could be delivered from anywhere even as the pandemic Editorial raged across the globe. Some U.S. banks have claimed that nearly 100% of their staff Mehul Dani, Ravi Lalwani, V. Raghuraman is working remotely and yet providing the services in the most effective manner. And Research Editors these banks would prefer to continue doing so when the situation gets to normal. It V. Babu, Ratnakar Deole, is natural that banks would leverage the learnings from the current crisis to evolve a W.A. Wijewardena, Sanchit Gogia, long-term strategy and identify the functions that can be delivered effectively from K.C. Shashidhar, Dr L.S. Subramanian, outside office premises. Ajay Kumar One aspect that would be interesting to follow will be the shape that branch banking will take. It has been abundantly demonstrated during the pandemic that branches Advisor-Alliances are almost irrelevant and at least retail banking could do without them operating fully. Ateeq Siddique Experiments in branchless banking, banks closing down branches for economy, the Marketing digital claiming space over the physical have all been indications that branches may Kailash Purohit, Apoorva Lawangare, soon become scarcer if not a matter of legacy. Dhiraj Mestry Maybe when the virus is contained, Events & Operations there could be some increase in Gautam Magare, Shirish Joshi, the footfall at the branches, but Stalin Saldhana, Pramod Jadhav, future branches may not retain Amit Gupta, Shweta Kadam, the brick and mortar structure. Ashish Verma, Wilhelm Singh, At best, branches could be a Sneha Agrawal destination only for detailed information and definitely not for Design transactions of any kind. It may Somnath Roy Choudhury gain the shape of a tech lobby Published By where even complex issues of Glocal Strategies & Services the customers, which hitherto used to be redressed by a human, will be handled by D-312, Twin Arcade, Military Road, Marol, machines, physical interactions and customer care will be through digital terminals Andheri (E), Mumbai 400059, India. within private areas and humans will have the role of trouble-shooters. Such a structure Tel: +91-22-29250166 / 29255569 will support customers anytime, anywhere. Besides, since customers could do most of Fax: +91-22-29207563 the things digitally during the pandemic, there will be a rethink on their part on visiting branches post-pandemic. This changes the role of customer-facing employees to that of focusing on more complex activities that require the added value of human intervention and get trained Printed & Published by Babu Nair on in new and complex skills as banking is tending to become more technology-oriented behalf of Glocal Strategies & Services and and complex. Printed at Indigo Presss (India) Pvt Ltd., Plot No. 1C/716, Off Dadoji Konddeo Cross Some experts even predict the evolution of ‘white label’ branches where, staff, Road, Between Sussex and Retiwala Indl. space, technology and processes can be shared by various banks or even non-bank Estate, Byculla (E), Mumbai 400027. organizations, which can be a high-income generating model. Perhaps thinking aloud, these centers could well be community centers where there could be coffee shops, Editor: Manoj Agrawal (Responsible for information hubs, and other activity generating points alongside bank branches. What selection of news under PRB Act) is interesting is that technology to make such a concept a reality is already in existence. When driverless cars can become a reality, why not branchless banks?

Banking Frontiers August 2020 3 N E W S Regulator

Bank of England plans revamp of payments system Bank of Korea plans The Bank of England said it is proposing to overhaul part of the country’s digital innovation unit payments infrastructure. The has hired IT consulting company Accenture for the purpose in a contract worth up to 150 million pounds. The bank’s Executive Director Victoria Cleland said the proposed overhaul is a key priority not just for the Bank but also the wider UK payments industry, adding it is expected to support a resilient financial system that protects the UK’s financial and monetary stability in the years to come. The plan includes overhauling The Bank of Korea is setting up a RTGS, which handles 685 billion pounds a day in payments between large financial ‘digital innovation department’ as part institutions. The new infrastructure, the bank expects, will be in place by 2022. The of organizational reforms in the second bank is also weighing the feasibility of making the new RTGS compatible with the half of this year. The central bank plans proposed Central Bank Digital Currency (CBDC). to introduce a number of different technologies like artificial intelligence and Bank of Japan fast-tracks work on CBDC blockchain, through the new department. The Bank of Japan will begin substantive testing of digital currency it plans to issue The department will also perform tasks such sometime in the future. The bank has set up a team within its Payment and Settlement as implementing new digital technology Systems Department to work on digital currency issues. A spokesperson for the bank policies and expanding the latest digital said consideration of a central bank digital currency (CBDC) will be handled as one of infrastructure. The central bank was the top priority issues within the bank. While no deadline has been fixed for the testing examining possible use of blockchain for to start, the bank is expected to cooperative with private sector enterprises, which have bond market. sound technical knowledge about the issue. The central bank aims to work on the basis that the proposed CBDC would have universal access similar to regular currency, and resiliency to enable the digital currency to be used even during natural disasters Fazle Kabir reappointed and other emergencies. Japan, however, has one of the highest levels of outstanding currency in circulation, at about 20% of its gross domestic product. governor of BB Oman introduces new 50 rial note The Central Bank of Oman has come out with a new 50 rial bank note to mark the 50th anniversary of Oman’s ‘Renaissance’ and in commemoration of the memory of its founder, the late Sultan Qaboos. The RO 50 banknote is sixth in the series, and will begin circulating as legal tender. The central bank is working with local banks teo configure ATMs and CDMs to make them compatible with the new banknotes. The design of the new bank note, among others, features a golden security patch window on the right side depicting the main entrance of the Central Bank of Oman building, with the name CBO mentioned in both Arabic and English. Among the other new security features are a blue- inked window revealed under any light source, a shiny, multi-colored security patch on the left side in the form of the numeral 50, depicting moving elements of colour shifting gradually from green to gold when the banknote is tilted, 3 watermarks on the left side of the banknote, which include a portrait of Sultan Qaboos, and the numeral 50 printed Fazle Kabir has been reappointed as the in Arabic twice; both revealed under any light source. governor of Bangladesh Bank for a term of 2 years. The Financial Institutions Division Fintech booster program in Malaysia of the Finance Ministry Fazle Kabir has Bank Negara Malaysia and the Malaysia Digital Economy Corporation (MDEC) have been appointed as the governor of the come together to launch a Fintech Booster Programme to support the growth and Bangladesh Bank until he turns 67 or till development of fintech companies in Malaysia. It provides capacity building for fintech 3 July 2022 as per the provisions in the companies to develop meaningful innovative products and services by enhancing their Bangladesh Bank (Amendment) Act 2020. understanding of legal, compliance and regulation requirements. Fintech Booster is open Earlier, on July 09, the parliament passed to all fintech companies including those without any presence in Malaysia. However, the Bangladesh Bank (Amendment) Bill, fintech companies with potential to contribute to the creation of high value-added jobs 2020, raising the age limit for the governor in Malaysia will be viewed more favourably. to 67 years from 65.

4 Banking Frontiers August 2020 Insurance Awards Two Global Honors for Bajaj Allianz GI Bajaj Allianz General Insurance has recently won 2 global awards:

ecently Bajaj Allianz General 1800+ articles/news/events/videos which Insurance won 2 two global awards. are helpful for farmers. RFirst is for the company’s ‘Farmitra’ In terms of insurance, users can app and the second for ‘Dig Swasth’ process, access the Pradhan Mantri Fasal Bima both of which were created with an objective Yojana (PMFBY) portal to buy crop of augmenting customer experience. insurance, check their application status, Farmitra won the EFMA-Accenture Global register claims and reach out to program Award and Digi-Swasth won the Celent coordinators. Through its full-fledged Award for Operational Excellence. insurance servicing module, a farmer can intimate their crop loss in less than 2 end automated policy issuance, including FARMITRA minutes. Claim status sub-module enables medical check-up through Digi-Swasth, an Farmers face many challenges with farmers to check their claim status in real- innovative digital model which is developed respect to timely intimation of claims, time. Additionally, users can also purchase with the Internet of Things (IoT), integrated grievance redressal processes, verification allied insurance solutions such as motor with 4 partner systems and a mobile of information about their applications and health insurance policies offered by app-based appointment booking system or claims status, which untimely result in the company. The company is the first in available anytime, anywhere. The platform negative publicity of the insurance scheme the insurance industry to launch such an challenges the conventional method of and insurers. To overcome all these issues, app designed specifically for empowering medical check-ups by leveraging technology Bajaj Allianz General Insurance launched farmers digitally. innovatively. Integration with partners has a one-stop-shop Farmitra mobile app to The app is only 2.3 MB on Android brought about a high level of engagement provide insurance solutions to its insured Playstore and has a ranking of 4.1. at each touchpoint. farmers across the country. The unified It is currently available in 7 states – Using the Caringly Yours mobile app, platform aids farmers to avail complete Maharashtra, Rajasthan, Karnataka, there is an instant transfer of the customer’s insurance services, going beyond insurance Haryana, Andhra Pradesh, Uttar Pradesh recorded data such as ECG and vital signs to get connected to the world of new-age and Madhya Pradesh, with 4 language to the company’s core system along with agri-information and technology. interfaces – Hindi, Marathi, Telugu and the digital transfer of medical data and The company deals with farmers by Kannada. It was launched on 14 October lab reports. The digital process provides offering risk mitigation solutions through 2019 and got over 150,000 downloads as a seamless on-boarding experience for crop insurance. The Farmitra - Caringly on 25 July 2020, with Maharashtra having the customers by empowering them Yours mobile app not only provides the most downloads. with a self-guiding appointment system insurance solutions but also a range of and tele/video underwriting as per their other customized, value-added services DIGI-SWASTH convenience in the comfort of their home. such as information on personalized crop As the largest Indian private player in the The complete journey is paperless giving a advisories, visual crop diagnosis, mandi general insurance industry, Bajaj Allianz great experience to our customers. price, agricultural news and best practices General Insurance Co is ensuring that it has The Digi-Swasth process has helped without any cost and in the farmers’ integrated robust systems in its processes the company in converging its end to end preferred vernacular languages. Farmitra which have proven to be extremely pivotal digitization process strategy, with smart aims to provide a holistic digital solution to to the organization’s success. Being an and seamless steps and swift execution improve farmer life cycle value. industry leader, the company sought to to conclude the issuance instantly. It has Farmitra provides hourly weather assimilate set processes with technological helped the company to move from archaic forecast for the selected regions, enhancement in innovative manner thus pre-issuance medical check-up process to personalized advisories in preferred providing seamless results. Traditional innovative AI & ML integrated IoT based regional languages, customized as per methods of arranging medical check-ups data transmission process with quality the selected crops, comparative market were inefficient and hence the company results. The 3 most critical success factors price of crops, news related to agricultural took up the challenge to find solutions which made this initiative successful are: developments, a locator for seed/soil testing to overcome the typical health check-up (i) digitization/automation of the end to labs, details of fertilizer dealers, and cold process. There is a Health Operations end process, (ii) system enhancements and storage around the area. The app features Team (HOPs) in the company, an industry- development of workflows and (iii) most video-based information, consulting and first move. Besides, it has introduced an importantly customer delight. guidance for farmers. It gives access to integrated process, representing end-to- [email protected]

Banking Frontiers August 2020 5 Share Trading Loyalty program rewards right investment behavior Reliance Securities leverages big data and robo-analytics to facilitate effortless trading:

eliance Securities offers online MARKETING, PROMOTIONS trading platforms and investment Reliance Securities believes that customers Ropportunities, providing customers still depend a lot on the reference of their peer with access to equities, derivatives, currency, groups while selecting a financial product. IPOs, mutual funds, bonds and corporate “We have accordingly launched a ‘Refer n FDs. In the last 6 months, the company Earn Program’ for existing customers who has focused on improving customer act as our brand ambassadors and introduce experience right from the sign-up stage to us to new clients in their influence circle,” transactions as well as after sales service. It says Srivastava, adding: “Apart from this, has transformed its broking platform to a we extensively use digital marketing efforts, financial wellness platform which provides brand partnerships for acquisition and savings, investment and protection. systematic digital engagement measures According to Rajeev Srivastava, through video content and likewise to Chief Business Officer, the company has engage and educate user groups.” re-engineered its customer on-boarding, making it a completely contactless, paperless CHANGES IN T & C process enabling customers to be able to Recent guidelines by SEBI ensure that trade in as less as 15 minutes. “We have also Rajeev Srivastava reveals that a customer can open his account in a integrated our equities and commodities Reliance Securities has witnessed completely contactless and paperless trading platforms to give a seamless nearly 50% jump in digital accounts manner. In this regard, Srivastava says experience to our customers. We have added in pre- and post-corona period the most important change is right at insurance as a new product category on our the account opening stage. The original web platforms, which is in addition to all and pre-set strategies to get trade ideas seen and verified requirement would investment products that we offer. This is in effortlessly.” The company has an in-house be met through e-sign, while in-person line with our objective of making our platform IT team of over 40 people. verification (IPV) requirement is taken a financial wellness platform,” says he. through Aadhaar authentication and The company has launched a customer DEVELOPMENT TIME bank details are verified through penny loyalty program – R Advantage – recently, Srivastava says the team could could drop mechanism. ¬a first of its kind in the broking industry, re-engineer the customer onboarding which gives reward points if a customer experience in less than 3 months while DRIVERS OF CHANGES exhibits the right investment behavior. equities commodities integration has taken With increased adoption of smart phones nearly 6 months. The agility to deliver and ever improving internet quality, MULTIPLE TECHNOLOGIES products is also dependent on the applicable customers expect a frictionless digital The company has used multiple technologies regulatory framework, says he. experience in all product categories and like .Net, SQL, jQue, etc and has created investment products are just a part of TICK platform. “This is a comprehensive NON-METRO YOUNG CUSTOMERS that. Srivastava says easier customer analytical solution that has been built Through digital contactless and paperless sign-up process and more and more digital to address the limitations of users and onboarding, the company expects to add innovations in the investment products brokers for finding relevant insights from millennial customers and customers from and platforms have led to increased the financial markets in real-time,” explains non-metro cities. Srivastava says nearly participation of retail clients in the capital Srivastava, further stating: “This platform 50% of the new customers acquired through market. New customer acquisition rates consists of a bouquet of products covering digital routes in last 3 months are aged 30 have more than doubled in recent years from news, price and fundamental data for years or below and the company has seen 1.8 million demat accounts annually in 2015 various asset classes and detailed analytics higher interest from cities such as Bhopal, to 4.1 million in 2019. This trend has further at portfolio, brokerage and user framework Visakhapatnam, Agra and Dehradun. catalysed in the post-corona period. level. It has TICK web which is a big data Integration of equities and commodities “We have also witnessed nearly 50% analytics and robo-insights platform and platforms will be more useful for derivative jump in our digital accounts in pre- and TICK Pro, our intuitive mobile app, which traders while customer loyalty program will post-corona period,” says he. empowers one with incredible analysis be relevant for all kind of customers, he adds. [email protected]

6 Banking Frontiers August 2020 Digital Marketplace Platform strategy to drive 30-40% growth iQuippo digitizes co-lending programs, offers dynamic pricing to borrowers and dynamic risk adjustments to lenders:

Quippo, India’s first digital marketplace and customizes offers according to their for infrastructure equipment, has financing needs. “The most fascinating ilaunched its upgraded financing portal aspects of our portal are the negotiation and (www.iquippo.com) and has become the first customization options for our customers. To digital platform in the country to digitize digitize the process of negotiation initially was co-lending programs. iQuippo’s customers a challenge. But we have been able to introduce can avail finance for their equipment this aspect and create a value proposition for purchase at the click of a mouse from the our customers. We want to be known for our comfort of their home/office. innovation and to have positively disrupted Anant Raj Kanoria, CEO of the company, the infrastructure equipment ecosystem says the state-of-the-art platform now by bringing customers, OEMs, dealers and offers the company’s customers an option financiers on one platform. We are committed to choose offers from different financial to transform the infrastructure equipment institutions. Customers are able to track industry and will continue to innovate to their loan applications online, get feedback create an environment in which P2P, B2B on documents that they need to avail loans and B2C businesses flourish,” he elaborates. and get answers to all their queries relating to the disbursement process. They do also Anant Raj Kanoria IBM’S TRANSFORMATION TECH benefit from a single window access to entire process easier and faster for all its iQuippo is a 360-degree digital platform multiple financiers, simple documentation stakeholders. This enhanced the company’s that facilitates buying, selling, financing and hassle-free application and get real drive to digitize the entire lifecycle of and leasing of equipment, asset certification, time offers from the financiers in the form infrastructure equipment and bring all machinery evaluation, insurance of of competitive rates and higher loan to the relevant stakeholders – customers, equipment, auctioning, parking and logistic value ratio. OEMs, dealers and financiers – on one facilities, yard management, spare parts Dealers are able to upload their invoices, platform. Says Kanoria: “The portal has and other asset related services. It allows generate leads, track customer applications integrated the risk and the pricing engine, buyers and sellers to interact, negotiate and and avail a free customer relationship which provides customers with dynamic close transactions in a timely, transparent management tool, which improve their pricing and financiers with dynamic risk and cost-effective manner. The portal has client relationships. adjustments according to the changes in been jointly developed with IBM to offer the market situation, both at micro and transformation technology with highest level BANKS, NBFC OFFERS LOAN macro levels.” of security, performance and transparency. On iQuippo platform, financiers can check After covid outbreak and the lockdown, “We are in the process of becoming India’s credit scores and receive other necessary iQuippo realized that its customers were first ever platform to digitize the co-lending data for loan approvals in a transparent and looking to finish the ongoing projects as process,” says Kanoria. efficient manner. This leads to a quicker early as possible. With migrant workers turnaround time, digitized documentation returning home, there was also a shortage of MARKETING & GROWTH and reduction in cost for financing partners. manpower. Hence the company attempted Since most of its customers are from the Says Kanoria: “The current sole lending to refurbish many of the used equipment, traditional industries like construction and co-lending banks and financial services ensured that they are in good working and infrastructure, its digital presence is companies are expected to offer more condition and made them available complemented with personalized outreach and more loans to iQuippo customers for to customers at affordable prices. The programs. “We have a focused presence purchase of infrastructure equipment on feedback has been encouraging as it is now across the 2 major social media platforms the platform.” seeing a rise in demand for used equipment. – Facebook and LinkedIn,” says Kanoria, iQuippo’s research showed that adding: “We have a registered user base of the primary reason for low volumes in NEGOTIATE, CUSTOMIZE over 90,000 customers and around 200,000 co-lending model was the slow turnaround Kanoria says Indians always have a visitors on our website every month.” time. Hence, the company, with the help preference for bargain buys. Therefore, the He expects a growth of 30-40% in GMV of technology, decided to remove the portal, he says, negotiates with the customers during the current financial year. existing process barriers and made the online on behalf of the financial institutions [email protected]

Banking Frontiers August 2020 7 Leveraging Analytics GRO+ App: Loan decision within 60 minutes Anuj Pandey, COO, U GRO Capital, explains how a solid digital strategy helped the company serve the MSME sector in a better manner:

Mehul Dani: How was your digital strategy of our direct to customer application GRO implemented in 2019-20, and what was Direct and received 5000+ customer logins the customer response? in a very short period. We have made the Anuj Pandey: Most financial journey completely paperless for low ticket institutions while lending to MSMEs still unsecured loans for micro enterprises. insist on looking at physical documents While covid has brought a temporary halt like financials or bank statements. in regular business, the period also brought Our approach has been to use digital with it an opportunity to relook at our mindset and platforms as a credible and customer engagement models and has led us practical solution to real problems faced to test a number of digital solutions such as by the industry. Our digital strategy has chatbots and custom-built customer surveys. been a combination of digitization and We even conducted customer sentiment digitalization. Our endeavor has been to surveys covering 1000+ customers across educate our customers and GRO partners 9 locations using our chatbot and online on the advantages of going digital. To survey tools, which have immensely helped enable them we introduced our GRO+ app us to implement the moratorium facility which helps digitize physical documents on seamlessly for our customers in the most the spot through ML based OCR tech. We efficient manner possible. have also developed GRO Score, which is a Anuj Pandey explains how As we gear up now to get back to proprietary ML based credit underwriting U GRO Capital is taking business post-lockdown, we have launched rule engine customized for our selected an end-to-end digital offering - Sanjeevani MSME sectors. GRO+ app was made advanced data science and - a cash flow assessment based digital loan available even on hand-held devices and is ML/AI based applications to the product. This demonstrates our digital now widely recognized has one of industry’s market capabilities and the willingness to adopt first application of its kind. Today we digital first processes like video KYC, video provide an in-principle decision for any Post-covid, we find ourselves in a based personal discussions as well as digital loan application through GRO+ app within sweet spot thanks to our digital outreach signatures/e-singing of loan agreements. 60 minutes. philosophy. Pre-covid, we did a beta launch How have you leveraged data analytics? Data driven decision making is the Technology Led Business Model backbone of our business as well as the organizational culture. Generally, in the Branch Led Channel | GRO- Tradional Balance Sheet “Uberized” Distribuon model with a network of GRO Lending using funds from banks; PSL nature of books banking industry, consumer lending Partners having higher producvies to aid bank financing Knowledge Meets receives a lion’s share of the focus when Ecosystem Led Channel | GRO-Chain Technology Co-originaon it comes to data analytics; however, Partnerships with Anchors to lend to MSMEs in their Co-originate loans with larger banks to have access to business ecosystems higher cket size loans application of analytics in MSME lending is lesser and mostly in one-size-fits-all Distribuon Channels Liability Sources manner. We were the first organization to

BFSI Led Channel | GRO-Xstream Specialized Programs with DFIs adopt a sector specific strategy; we realized Partnerships with NBFCs and Fintechs to co-originate Impact led financing in partnerships with DFIs in ME loans in Tier 2 and Tier 3 cies Fintech-Enabled sectors like healthcare, educaon, clean energy that cashflows of an electrical equipment Product Underwring manufacturer were very different than that Direct to Customer Channel | GRO-Direct Assignment of an education institution or a pharmacy Proprietary digital lending plaorm supplemented by Securizaon of porons of the loan porolio so it pre-qualified leads can be purchased by MFs/Insurance Firms/Banks store - which implies that these entities need

U GRO’s distribuon and liability strategies are both powered by proprietary technology modules to be assessed in very different ways. We have consciously designed for a ‘zero data

8 Banking Frontiers August 2020 loss storage’ architecture, where every bit of customer data is stored for future analysis in GRO Capital has been working with multiple vendors and service providers to a central repository. This is bolstered by the Uconstantly expand the quality and reach of the digital solution services ecosystem. API partnerships where bank statements, The management team has been greatly supportive of digital investments and there tax reports and credit bureau reports are has been significant capital available to invest in technology capabilities. It is among the select few companies that have increased the technology investments in current converted to machine readable data. We FY even in covid times compared to 2019-20. have invested in globally acclaimed statistics U GRO Capital maintains a nimble technology team following 20/80 rule, with and machine learning software. 20% in-house team supported by 80% partner teams. It plans to double the team size Analytics driven decision making helps this year. increase throughput while keeping risk and The company has enabled multiple customer onboarding, servicing and costs in check. Use of scorecards enable us communication channels through deployment of web apps, Android/iOS apps through to reject 80% of high-risk applications by tablets, handheld devices as well as desktop/laptop. The company is completely cloud eliminating only 30% of all logins, thus also native since inception. giving us crucial levers to monitor and fine tune strategies. Importantly, progressively in taking advanced data science and ML/ as well. We follow a very focused and trained models become better at taking AI based applications to the market. sharply targeted marketing campaign decisions, offering a massively scalable We have developed an in-house ML strategy. Audiences are identified and solution in solving the unsolved credit deployment engine and are in final stages targeted only if they fall under the needs of the Indian MSME. There are a wide of implementing our first home-grown sectors/sub-sectors which we service and number of case specific examples of analytics alternate data model for credit assessment. with a high degree of personalisation in usage – generation of pre-approved leads, Work is underway to digitize processes the communication and call to action. indicators of risk and propensity, pricing that have always been physical -such We have managed to get close to 5000 recommendations and fraud alerts – which as location assessment, alternate data- organic followers on LinkedIn within are of special importance when we go direct based fraud checks, facial recognition and a year of becoming active on our social to consumer and try to minimize touch. object identification. handles which tells us that our content We are a fast maturing analytics strategy is resonating with our audiences. practice with vertical competencies on What are the marketing campaigns? How We will focus on building our Facebook data engineering, portfolio analytics do you use social media? handle likewise this year, as it is also a and on-boarding science/ predictive We have used analytics and data promising sourcing channel for us. modelling. We are making rapid strides driven decisions in marketing campaigns [email protected]

Covid-19 and New Normal: How we can manage our Business Nepal based BFIN organized an online conference on August 14, 2020. Excerpts from the keynote by Dr Shah Md Ahasan Habib, Director, Bangladesh Institute of Bank Management: here are extra ordinary expectations are showing increasing trends by profitability. However, failure from banks during the covid scenario. taking advantage of the current to comply may be even costlier. TThere are also huge resource situation. Also, there is potential Bank should restrain from limitations. There is also a policy crisis as challenge of misuse of stimulus excessive profits in the short term all policies are not working effectively. packages being implemented for the sake of long term social Concerns: Corporate governance must through banking system. and economic growth. adjust as time evolves. Bank’s boards are Must do: Focus should be on Upgrading Risk expected to change their roles during crises, business continuity and igniting Shah Md Ahasan Habib Management: For risk as seen in the past. What are the areas of long term growth. One possible management, it is time for banking operations where management way to improve monitoring is to create installing factual risk management systems. need policy guidance? People, the biggest one or more committees and to create Banks need to upgrade to newer forms of asset of banks, are fearing job losses. There leadership networks. Banks must have an risk. An extra ordinary information system are fears of erosion of customer confidence. internal strategy for economic stimulus so and network is required, which may not be Banks have concerns on liquidity and that clients and the bank itself must benefit. the need in the normal times. Trust from capital insolvency. NPL might be a critical We may need workplace transformation business, customers and community may challenge in coming days. Money laundering and complete digitalization. Increasing be at risk. and information technology security frauds compliance cost has put pressure on banks’ [email protected]

Banking Frontiers August 2020 9 Web Panel Discussion WFH - Prevention is better than cure Banking Frontiers organized an online panel discussion on work from home concept and its advantages and pitfalls with Atul Joshi, Vice President – HR & Admin at Mahindra Finance and Sunil Wariar, CHRO at Future Generali General Insurance, discussing the WFH initiatives in their institutions, and the challenges and opportunities. Edited excerpts:

Manoj Agrawal: What kind of broken, because there is no option. psychological problems are employees Once there was realization that likely to face if WFH continues for this is a new normal, the organization extended periods? took every possible step to make the IT Atul Joshi: This whole covid infrastructure available for the employees situation has created an unprecedented to WFH. Gradually technology problems challenge. Earlier, WFH was considered got solved and organizational problems as a holiday and an enjoyment activity. started. People are improving their But the current situation has broken communication skills because when this myth and people have realized that you have a 1-hour meeting in a virtual work-life balance has become work-life form, you need to be extremely crisp in integration. A recent study indicates that your communication. Earlier, the same more than 50% of the people are finding meetings used to consume more time. an increase in productivity resulting from When you have to focus on 1-hour online extension of the work hours. People are video meeting, you need a high level of saving time travelling to work and are focus and attention. What we are calling a utilizing that time for doing office work. new normal is actually not a new normal; When you are in the office, there is a people are doing things virtually that physiological limit you have, but not at Atul Joshi believes that they were doing in-person and people home. So, most professionals end up are working remotely. Working remotely doing more work at home. Employees mangers must respect the time requires a work environment where you must manage home affairs and elongated boundaries for WFH can learn to use the collaboration tools. working hours. A lot of discipline is Today, with things getting exchanged needed by the individual to be effective environment is different for different through mails, the future will be working in the current scenario. employees? in a collaborative way using collaboration Sunil Wariar: Earlier, WFH was Atul Joshi: The WFH productivity tools on your devices. considered as being on leave; if someone improvement is essentially happening in Sunil Wariar: Future Generali did said I want to work from home, then the mid-level or higher management; at a survey after 3 weeks of WFH. Only it was looked at with an element of the bottom of the pyramid, they cannot 40% of our employees have laptops and suspicion. We at Future Generali adopted WFH, they have no choice. If mangers most of the salespeople don’t have. The WFH from 14 March 2020, one week WFH and create work-life balance, then back-office staff don’t need laptops as prior to the lockdown announced by the it helps in creating better productivity. they have desktop. So, we leased around government. Our claims, operations and It also saves infrastructure and real 400 laptops. Then, we were facing back office teams faced a new challenge. estate costs, particularly in metro cities. the problem of broadband internet Now, we have adjusted with it very well, Organizations are trying with few days connection, but most of the things got though certain elements in distribution WFH and few days of work from office fixed within 3 weeks. The survey found and sales need to be fixed. As a service- for certain categories of people. out that close to 25% of our employees specialized organization, there is lot of Mahindra Finance has adopted WFH want to come back and work from office, adaptation happening on our side. extremely well, either by providing the while other employees felt that WFH was employee a desktop at home or allowing great concept as they were enjoying food, Will WFH policy be adopted by people to use their own devices. Also, all spending time with family members and the industry, given that the home the myths related to security issues were pursuing their favourite hobbies, etc.

10 Banking Frontiers August 2020 Reasons shared for coming back working scenario? to office include not having a place to Atul Joshi: Earlier, you used to meet keep the desktop and not having an the spouse of your colleagues and their independent place to work at home. In kids once in a while, but now due to some cases, our operations team guided WFH people are introducing each other’s employees to work on night shifts, as the spouses and family members virtually - broadband speed was better during night that creates a bonding and I feel this is very time. Our employees went out of the way important. Something that would have to adjust to the new situation. taken 6 months is now happening very Nearly 50-60 of our offices are quickly. If you look at the whole concept operating in orange and green zones of leadership development, all of us used and we have 25% attendance in our different ways. We have experienced offices. Police have behaved differently leadership development in a quite in different suburbs of Mumbai. We different way of education, experience have also introduced lot of engagement and exposure. Earlier the international programs like yoga and antakshari for university programs were limited to a our employees to keep them connected. few people, because it involves cost of travel and stay, but now with virtual How do you see the future of learning, more people are getting the collaboration tools in your organization? Sunil Wariar advocates benefits of doing an international degree Atul Joshi: Indian managers were rediscovering of leadership as course. Also, now there are lot of courses used to working in a scenario where most per the current scenario available and people have flexibility to do of the team members were around you. different courses because of WFH and the Working virtually requires managers to challenge is that after 4-5 hectic sessions technology platforms that are supporting trust on the team members and there is in a day, the level of energy gets very low it. This is helping people to focus on a need for transparency. Many people and it becomes very difficult to focus. leadership development education by may not have the good atmosphere to Collaboration will be important, but how themselves. work from home or even for a proper you put the collaboration into action is There are positives and some conference call there may be noise especially important. As we go along, you challenges to virtual training. First, the in the background. Working from need these skills to have a better outcome. responsibility lies on the individual for home does not mean you are available development, which is a big shift. Now 24x7 and mangers must respect the Any changes in the use of calendar tools the organization provides platforms and time boundaries. It is important that after WFH? options and the individuals must take the managers show some sensitivity towards Atul Joshi: The calendar tool is responsibility of what they need to learn. people. There are team meetings and becoming amazingly effective in checking Sunil Wariar: We need to review meetings for which employees who is available and who is not, as you rediscover leadership in a new context. have to block their calendars. People are can see somebody’s availability in the The conventional competencies and effectively using the calendar during the calendar tool. People are innovatively measurements that are associated day to ensure that they are productive. using the calendar tool. with success need to be revisited. The Sunil Wariar: The biggest challenge Sunil Wariar: The supervisor observation and real time scenario were for us is getting our people to adjust and team leaders mainly do the particularly important in a leadership with the new skills. My sales team had calendarization. It has become important development center setting. These confidence that physical meetings can do as there is a formal protocol and meetings things will have to be recalibrated and wonders so if they can’t achieve targets are possible because of the calendarization we will have to come up with newer during the month, they can achieve and collaboration tools, which was not mechanisms. Any type of development in month-end by fixing meetings with done in earlier days. Typically, 10-12 will force individuals to take new types of critical people. But now it is necessary members meeting via conference call is responsibility. Earlier, there were options for them to put their propositions across highly effective in terms of participation in training, but now we are in a situation on telephonic interaction and and commitment. where there is no option. Today, we are collaboration tools. dealing with uncertainty and it will take There are multiple platforms How is HR helping in creating stronger time to deal with it, but the principle will available and we are using Microsoft bonding among the employees? How remain the same and a lot of individual platforms extensively for collaboration is HR helping in developing stronger responsibility is called for. and for training our agents. The big leaderships in the current remote [email protected]

Banking Frontiers August 2020 11 Conference Report PSU Banking 2.0: Merge & Surge Banking Frontiers organized a web panel discussion with senior executives of public sector banks on the themes of amalgamation and lockdown. A report:

n idea of a community cloud exclusively for banks was mooted Aat a web panel discussion highlighting such a facility will go a long way in handling issues like security, cost and exclusivity, which banks face while using a public cloud. Making the proposal, Rajesh Ram, General Manager-IT, Bank of India, pointed out that major banks have their own private cloud, while there are restrictions of public cloud. “Why not all banks come together and develop a community cloud for their exclusive use and also offer spare capacity to smaller cooperative banks, who cannot afford to be participants in the effort,” he said, participating in a web panel discussion on the theme of amalgamation of public sector banks and the impact anywhere – public cloud or private cloud. money, to activate their cards, etc and of lockdown on banks, organized by “A recent survey by Dell shows that public they are reading SMS messages sent to Banking Frontiers. cloud is bound to flourish. Banks should them. “This is a very positive step even as He pointed out that globally, prices have a common framework to manage people in cities explore all avenues to do for public cloud are going up. infra and cloud. This is happening in PSU things sitting at home,” he said. He also said the regulator has now banks,” he said. “At the same time,” he maintained, come out with a sandbox for innovative “employees and employers matured. The technologies to be tested and refined and VISIBILITY, TRANSPARENCY humanitarian side of employers became the idea of a community cloud for banks V. Subramanian, GM-IT at IDBI Bank, evident. The first 7 days, I had more can be part of the experimentation under believes that public cloud needs more Zoom meetings than ever before. People the sandbox, Rajesh Ram said adding if visibility and transparency. “Since the have got used to operating digitally from the idea does not work, the concept of servers, networks, etc, will be shared anywhere,” he added, private cloud can continue. in the cloud, we need more control. All the banks are running full-fledged data ONBOARDING DIGITAL SWITCHING CLOUDS centers and while going to cloud, we have Sunil Soni, General Manager – IT, Punjab Suryanarayanan K., CISO at Central to get benefits,” says he. National Bank, says what the bank did Bank of India, said the bank is planning Discussing the broader point of at the time of demonetization is what to explore cloud for certain applications. lockdown and its impact, Ratan Kumar, it has been doing during covid. “Those “The main challenge earlier was data General Manager - IT, Central Bank of customers who were reluctant and storage as the providers were outside India, said the pandemic has thrown apprehensive are coming on board digital India. Now the situation has changed and challenges and opportunities. Interaction platforms. “The question, however, is,” most data centers are present in India. at branches was the strength of banks says he, “how safe it is for a bank to have We want freedom to leave one cloud and now it is a challenge. “Digital pickup its employees work from home.” and to move to another cloud even while is so wide and phenomenal that it is a Rajesh Ram of Bank of India says ensuring security for the data,” he said. bright situation for us. We are looking at attendance of bank employees was much Prasanna Ranade, Head – BFSI, Dell systems, processes and products to bring better than those of vendor employees Technologies, who participated in the in digital enablement,” he said. during WFH. “I found our employees discussions, said Dell believes in operating He mentioned that people covered to be very cooperative. Obviously, IT model and as long as an enterprise has the by schemes like Garib Kalyan Yojna have employees had fewer challenges than control over its infrastructure, it can be started coming to the banks to withdraw frontline staff.

12 Banking Frontiers August 2020 Focus was more on safety than on productivity. Technology companies are better at work from anywhere as they have structured and matured it. As bankers, we can try to learn from them,” he adds. Subramanian of IDBI Bank is of the view that WFH, which came in the wake of the lockdown, should examined thoroughly for its pros and cons. Wi-Fi networks at home may not be very secure, says he, adding there are RBI guidelines on VPN access for people working at home – including hardening of laptops. A snapshot of the online panel discussion “There is the issue of someone other than Suryanarayanan of Central Bank as products, processes and infra will get the employee viewing customer data of India says while WFH has afforded synergized, says he. on the computer at home. These issues an opportunity for banks to enhance He underscores the need sanitization need to be examined when the pandemic its digital capabilities, it is also an of information platforms with new ends. There is need to review security opportunity for hackers. “Less than 5% infrastructure coming to the lead banks. solutions from vendors whose employees of staff can work from home, especially In addition, there is an urgency to create are working from home. Also, SOC needs branch employees. IT employees can a common culture and values. very good infrastructure and there could work from home, but need better security Soni is emphatic that for successful be slight reduction in the performance of set-up and practices. Even with VPN at mergers, there has to be democracy SOC operators, as they don’t have access home, members of the family have a rather than arm twisting. “From an IT to 100-inch TV, etc. We have to pat chance to get the bank’s data. They must perspective, there has to be consensus ourselves on the back for seamless service not share this data outside. At Central on which internet banking system to customers. Another positive thing Bank of India, we have shared guidelines should prevail, which HR system is the welcome migration of customers to employees in this regard,” says he. should continue. Also there has to be to digital channels but there is need to an assessment on the available infra for spruce up security there,” he elaborates. NEW OPPORTUNITIES shortlisted products and also the ones He revealed that the bank will soon Discussing the mergers and consolidation that are latest and have the longest host ifs near DR site. in the banking sector in India, Ratan residual life. This is simple to say, but Kumar of ., difficult because all the entities have to PART-TIME, FULL-TIME WFH says consolidation is for creating new run until amalgamated, so as to avoid Stating Dell is a pioneer in WFH, opportunities. “Size and capital base customer difficulties. So this requires Prasanna Ranade, however, says there of Indian banks is so low that we can’t temporary investment to handle growing is a difference between WFH part time compete with international banks. The load. Economies of scale will come only and WFH full time. “After 3 months of current mergers will help Indian banks in over a period of time. The board has to lockdown, we need a strategy for this to terms of increasing business, geographies, be convinced for approvals, and they will go on for a long time. We have digital technologies, skills and customers. It can ask for all kinds of alternatives. Hence workspace platform Workspace ONE in help us scale up organically,” he explains. the importance of micromanaging the place for all our employees. Banks are Sunil Soni of merger process,” adds he. looking at virtual desktops for creating points out that post-merger the income Another aspect he stresses is creating a strong security. Security has to be data and profits will go to the government verticalization and using people effectively centric rather than device centric. Also, kitty as earlier all banks were competing and more responsibly. “We are automating banks are looking to enhance their SOCs for the same pie and undercutting each processes so that people and teams and and creating data lakes and analytic other. “Now,” says he, “there is greater managers can automatically come to know engines to analyze how people are trying opportunity for up-sell and cross-sell. their productivity levels,” says he. to enter into the environment,” he said. We have to look at each product and People, he says, at crucial at this phase He reveals that most private sector process and rationalize them so that the and there is need to have them back on banks have adopted VDI and planned fruits will be far bigger and better. The their feet from the twin events of mergers for 30% or so staff to work from home. investment in technology will also be and the lockdown. However, the perspectives of bankers pruned. We will have to spend a little He also points out that HR from PSU banks are quite different from more now than otherwise, and after 2 amalgamation is the most critical. those at private sector banks. years, we will see economies of scales [email protected]

Banking Frontiers August 2020 13 Virtual Conference Largest virtual fintech meet attracts global attention The two-day Global Fintech Fest, organised by Fintech Convergence Council, Payments Council of India and NPCI saw participation of 12000 delegates from over 110 countries, including 30% from international community as well as 75 Indian & international exhibitors:

Risk & risk management to be big differentiator for banks Uday Kotak, Managing Director & CEO, , told the conference risk and risk management will be the big differentiators for banks and will help bankers create unique positions for themselves in the industry. Risk management will continue to remain with banks, he stressed, Uday Kotak while participating in a discussion with G. Padmanabhan, Non-Executive Chairman, Bank of India. Arguing for a more inclusive eco-system, he said this Vijay Sekhar Sharma is an era of coopetition and banks and fintech will continue to cooperate in some areas while competing in others. However, Paytm to get into stock it will the digital players, who will move ahead, he said, market trading platform stressing that policy supervision, regulation and governance In a fireside chat with Rajan have to be ownership neutral and have to be the same for both Anandan, Managing Director, public sector and private banks. He also maintained that he Sequoia Capital, Vijay Sekhar will look for investment opportunities in the fintech sector. G. Padmanabhan Sharma, Founder & CEO, Paytm, indicated that after entering a new business in auto Being digital, data driven imperative and health insurance, Paytm for banking will get involved in ‘new age stock market trading platform’ Arundhati Bhattacharya, Chairperson and Chief before the end of this quarter. He Executive of Salesforce India, said digital is imperative argued that for India to become and it is empowering and will give better risk a 45 trillion economy, SMEs management insights. Digital opens up new market Arundhati Bhattacharya will have to be empowered segments and gives enterprises a picture of their lending through identification and scenario, with which one can manage NPAs better. verification. He also suggested Reiterating on a more data-driven and digital model, she said that banks will have that startups should look to be ready for the future. The future is going to be different from anything that at financial inclusion as an we have seen in the past. Banks will therefore have to look at how they approach opportunity and lending can be the entire customer journey - whether they want to be distribution-heavy and a trillion-dollar business. Rajan branch-light or asset-light, liability-heavy and transaction-heavy. However, being Anandan said while India has digital and data driven will be crucial for banking. over 40000 startups, only 10% of these have been able to raise venture capital.

Digital lending will be 50% of total lending by 2023 Amitabh Kant, CEO, NITI Aayog, said the future of lending will be phygital. The latter will be the next big driver in fintech, marked by retail loans. Digital lending will constitute 50% Amitabh Kant of total lending by 2023. He said the financial technology sector has been the shining star of India’s startup and technology ecosystem, enabling seamless transition from physically connected to a physically distant but socially connected environment. Rajan Anandan

14 Banking Frontiers August 2020 OCEN can democratise lending to street vendors Nandan Nilekani, Co-founder and Non-Executive Chairman of the Board, Infosys, stated that democratising credit in India is the need of the hour. India needs to go that extra mile in offering credit to the most deserving, smallest businesses and individuals. According to him, Open Credit Enablement Network (OCEN) a platform that connects lenders with marketplaces and thereby with borrowers is a technology system, currently under discussion. If implemented, it can democratize lending to micro enterprises and street vendors in a big way. He suggested, account aggregator service protocols developed and backed by RBI can be a game changer. There is a need to realise that public systems need to be designed keeping in mind not just the top 50 million users but the 1 billion users, the masses, he added. Nandan Nilekan

Mobile banking may be preferred to internet banking SBI chairman Rajnish Kumar said that mobile banking, in the days to come. Out of 100 transactions at SBI, only 9 transactions are being mobile banking may become the most preferred banking channel, even more than internet made in branches. Mobile Naveen Surya banking has seen a rise from 25%-30% to 55% of all the transactions now. Aadhaar KYC, video KYC Rajnish Kumar is future, will pick up pace Naveen Surya, Chairman, Fintech Convergence Council, said currently India is a very fertile ground for the Pandemic a great catalyst for the progression of collaborations industry between banks and fintechs, Dilip Asbe, Managing Director and CEO, NPCI accelerating the growth of said the phenomenal success of the home-grown nascent sectors like neo- platform of UPI is a testimony in itself as to how banking and digital lending. far we have come as a nation. The pandemic Aadhaar KYC and video KYC has been a great catalyst for the industry and would be the norm in the we aim to develop an ecosystem where digital future and will pick up pace transactions are executed remotely, possibly by extensively in the near term. majority of our population, he added. Dilip Asbe [email protected]

The Way Forward From Attrition to Retention Summary: In an industry Summary: Analytics and where maximum customers insights are important tools are rural and semi-urban, in hiring and retaining the digital onboarding and right candidates. There must enrolment are key stakes, be joint goal settings and but the other measures strategies differ to reduce widely from organization’s Shilpa Desai Ruchira Bharadwaja GM, Head-Marketing & CSR organization to CHRO, Future Generali India rifts. Fullerton India Credit Co organization. Life Insurance

Banking Frontiers August 2020 15 Brand Building Boosting Brand Positioning and Salience Brand building at financial organizations get the digital and social boost:

n this digital age when commoditization have also been actively promoted across our of financial products is the norm, brand communications and have been very Idifferentiation is the crucial aspect well received,” he says. and financial services providers have to Over the last 2 years, the company have new brand strategies, especially since has undergone a major marketing brand portfolios have to be in line with the transformation journey engaging super star emerging market realities. Brand building Amitabh Bachchan as brand ambassador; and brand positioning, like in the case of any partnering with one of IPL’s most successful customer-oriented business, are long-term teams Chennai Super Kings as their efforts for financial services institutions as Principal Team Partner; taking up semi- well and consistency is the hallmark of any naming rights of leading metro stations like strategy in this regard. Greater Kailash in Delhi and Nandanam in Banking Frontiers queried 3 financial Chennai and carried out a major activation services organizations on how they created idea at Kumbh Mela in Prayaag in 2019 awareness about their brands and the called ‘Muthoot Finance Vishwaas Ki strategies they devised to be brands in the Tijori’ which won many accolades. It has reckoning. Singapore’s DBS Bank, which also launched a number of path-breaking has a significant presence in India, has a Suneel Yadav integrated marketing campaigns to meet brand promise – ‘Live More, Bank Less’, varied objectives such as driving advocacy, reflecting its belief that banking needs to with organisations such as Akshaya Patra, attitudinal transformation, testimonial-led be completely seamless, so that customers Pratham, Goonj and UNICEF to provide the and content-driven. can spend time on what they really care equivalent of 2 million meals to vulnerable “All these and more have led to creating about. Shoma Narayanan, Executive communities and help strengthen healthcare a strong brand positioning for the Muthoot Director - Group Strategic Marketing infrastructure,” says she. Group and Muthoot Finance in the minds & Communications at DBS Bank India, The Muthoot Group besides being of our audiences. Furthermore, these have says the bank tries to bring this to life in a strong player in the financial services also garnered measurable business impact everything it does, right from designing domain, has also interests in information over the last 2 years thereby bearing products and customer journeys to technology, media, healthcare, education, testimony to our marketing initiatives. Our advertising. “For example, we were the first power generation, infrastructure and brand positioning has always been that bank in India to launch a fully digital bank plantations. ART Housing Finance is a of a category leader and as a very trusted on a smartphone, Digibank by DBS. home finance company catering mainly financial services partner ever eager to serve She reminds: “Sachin Tendulkar is to the interests of middle income and the needs of people through our easy, quick our brand ambassador, and he embodies economically weaker sections of people in and hassle-free products and services. Also, our brand values perfectly, while helping the country. with over 250,000 customers being served us build a connect with customers across every day by our network of 5000+ pan India. Our most recent brand campaign DIGITAL, SOCIAL MEDIA India branches, I feel this brand positioning featuring Sachin was launched in January Abhinav Iyer, General Manager, Marketing needs no further testimony,” says he. 2020 and highlighted our Singaporean and Strategy, the Muthoot Group, says the heritage as well as the ease of banking with company as a brand has always remained BRAND SALIENCY DBS and our expansion into new cities.” active on digital and social media platforms ART Housing Finance has divided the key She says being purpose-driven is part and certainly there has been an increased task of leveraging social media and digital of the bank’s brand DNA, explaining that focus over the last 3-4 years. “We are actively channels into two parts. The company’s responsible banking, responsible practices present across all social media platforms be Chief Marketing and Experience Officer and creating social impact are the 3 pillars it Twitter, LinkedIn, Facebook, YouTube or Suneel Yadav describes these as reaching of the bank. “Since the pandemic hit, we’ve Instagram. Besides actively engaging with out to the customer and increasing focussed our communication on reassuring our digital audiences through our social the brand saliency. “Digital media and customers of our support, sharing useful assets, we also roll out extensive digital especially social media have made the content and encouraging customers to stay marketing campaigns periodically. On the process much more effective and efficient. safe and bank digitally. We have also done product front, our digital services such as Mapping the customer journey and using a our best to help those in need by partnering Muthoot Online and iMuthoot Mobile App mix of like and remarketing campaigns on

16 Banking Frontiers August 2020 DBS SPARKS. Themed ‘Everyday Heroes for a Better World’, the second season of SPARKS addresses pressing social and environmental issues such as food waste and social inequality. On International Women’s Day, the bank launched a new episode set in India that featured Sachin and told the story of a social enterprise supported by DBS that helped women become delivery agents. The episode clocked an impressive number of views as well as high engagement rates. Shoma Narayanan says: “During the pandemic, we found that our campaigns around digital banking and purpose- driven communication around initiatives Abhinav Iyer Shoma Narayanan to help the community were particularly Facebook and the Google Network, we have effective. We received a record response to team using capabilities of platforms such as reached out to similar profile audiences on a joint campaign with Akshaya Patra where Google and Facebook. It uses Google Analytics the digital landscape.” we double-matched contributions from primarily for measurement and analysis. This In addition to that, the company uses customers towards meals for vulnerable data in turn is fed into the internal CRM SEO and SEM techniques to drive the sections of society.” system thereby mapping and comparing the customers to its website. Email marketing Giving details about the use of digital ROAS and the ROI of these campaigns. has also been an effective way of nurturing channels, she says social media allows the Yadav says home loan is the core product consumers and increasing saliency for the bank to target specific audiences and start of the company and there are variants of brand. “We create and serve content to our a conversation with customers while also this product. In fact, the company is helping audiences which amplifies our positioning giving it data on how users view, share and its customers by providing them finance and our brand. The key is information and engage with the content. “These statistics to own a home or carry out extensions or content. Examples are campaigns that provide actionable insights to fine-tune our repairs or even help them through the LAP we have done in the past using the native digital strategy. Content marketing works product. These products have benefited advertising model, which helped us to reach in tandem with social media and has helped greatly from the brand building efforts the out our audience in an informative and us establish DBS’ expertise as a banking company undertakes. “We have been able non-intrusive manner. Using vernacular partner, especially in new cities,” she adds. to increase our share of direct to consumer content and adding digital PR to this mix The Muthoot Group engages a host of business because of the branding and makes it all the more effective,” says he. digital channels for meeting its business saliency campaigns,” says he. and brand building objectives. Iyer says CONNECTING WITH CUSTOMERS social media marketing and advertising, BRAND GOLD LOAN In terms of creating a brand, the company’s content marketing and effective digital PR Iyer in this regard points out that Muthoot focus has been to create awareness as well are some of the top digital channels that Group is a financial services conglomerate as brand salience. Says Yadav: “We reach work well for the group. with 20 diversified business divisions and out to our consumers by mapping their The group has a strong in-house offering a plethora of services through its customer journey and serving the brand in marketing team which works closely with network of physical branches and online the simplest manner across all touchpoints. media agencies like Mindshare, ABM channels. “Having said that, being the The messaging has been a mix of emotional Communications and AdGlobal360. category leader in gold loans and India’s as well as rational. This has been driven by Iyer says from a marketing automation largest gold loan company among NBFCs, direct customer contacts, through live, work perspective, the company has a robust the largest beneficiary of all our brand and play consumer touchpoints and by using CRM platform that enables it to assess building efforts is clearly the gold loans influencers as part of the marketing strategy. the effectiveness of the investments in portfolio. However, we have also launched Digital marketing plays a key role for us in marketing investments and business tailor-made campaigns for our other achieving both the objectives of awareness contributions. financial products such as home loans, and saliency,” he explains the strategy. personal loans, insurance, money transfer, For DBS Bank, one of its most RELIANCE ON IN-HOUSE foreign exchange, gold coins and travel impactful social media campaigns across For ART Housing Finance most of the services to name a few,” says he. markets has been its online mini-series campaigns are done in-house by a digital [email protected]

Banking Frontiers August 2020 17 Fintech Platform Millions buzz KreditBee’s app everyday The lending platform uses 10+ scorecards during the complete user journey: reditBee is a fintech platform collections and operations workforce from Finnovation Tech Solutions, with smartphones and laptops with Koffering instant personal loans of internet connectivity, along with in-built up to `200,000 to professionals. It has CRM tools to help them contextually a strong focus on online tech-based and reach out to the customers. Madhusudan data-centric KYC. Its CEO Madhusudan Ekambaram says for the tech, product, Ekambaram is directly involved in marketing, risk, data and finance teams, product, business strategy, technology there are laptops, and in certain cases, and investments. It is a full-stack digital desktops. This enables them to work from lending platform, with the entire life cycle home in general, and particularly during of the loan, starting from application and these extraordinary times. origination to disbursement and repayment He adds: “We use Amazon Web Services being completed online. Madhusudan for a good part of our compute, hot/cold Ekambaram says the company has followed Storage, ML and AI model hosting. We the digital-first strategy in its entire product work closely with Google for our in-house journey, and it has been received very well CRM solution, and mobile related services by the customers. “During the last month like user authentication, Firebase/GA of pre-covid operations, we had more than for analytics and marketing acquisition 5 million loan customers, out of which (Google UAC). Cloudflare is used majorly roughly 2 million were active. The daily Madhusudan Ekambaram for catering to our security needs like active users on our app are over 1 million, mentions that KreditBee firewalls, DDOS protection, etc. For our and the monthly active users are over has helped over 10,000 KYC/identity/credit underwriting services 15 million. We have over 30 million app customers with education and (Face-match, Face-liveness, Digital E-Sign, downloads within 2 years of operations,” enablement of moratorium on Video KYC, and OCR to name a few), we says he. their loans using social media use a mixture of inhouse solutions and solutions provided by vendors like DigiTap. ACQUISITION STRATEGY ai and Hyperverge amongst others.” KreditBee has an offline field sales deploy analytics as an overall strategy. “On team of over 200 people spread over 10 the origination side, we have a proprietary ACTIVE ON SOCIAL CHANNEL cities helping in the journey of financial rule engine which works on over 6500 Right now, KreditBee is going slow on inclusiveness across geographies and data variables acquired from over 120 data its inorganic marketing and promotions demographics. These sales folks work in sources,” says Madhusudan Ekambaram, on the acquisition side, considering the tandem with various DSAs and merchants adding: “We have 10+ scorecards that are overall business scenario. Madhusudan for a more robust outreach among target used during the complete user journey Ekambaram says depending on how the consumers. Madhusudan Ekambaram - right from customer onboarding to situation pans out over the next couple of says: since the entire acquisition strategy credit line assessments to collections months, it will be taking an emergent call is digital-first, for more than 95% of the prioritization. Even on the collections side, accordingly for the remainder of financial loans, the communication channel is we use vernacular languages for a larger year. “We are very active on all social online. “Having said that, the platform or relatability to the user. CRM optimization channels, and we treat them not just as distribution channel for our loans is the techniques like template, send-time and a communication channel but also as a KreditBee app only, which means that the channel optimization are also used for a service channel for our end consumers. We user needs to have a smartphone with an better overall output by customizing the have helped over 10,000 customers with internet connection, and download our user experience on our platform.” education and enablement of moratorium app on their phones to avail a loan from us,” on their loans purely on social media, says he. INHOUSE SOLUTION and many more on queries with regard to KreditBee’s tech, risk, data and product disbursement and repayment. With the OPTIMIZING CRM team comprises over 200 people. The larger presence of our customers across The entire process of underwriting and company also has an IT support team the digital coordinates, it is extremely collections does not require any physical to help in the maintenance, support and important to use these channels in the right touchpoint with the customer, which logistics for its smooth functioning across way to connect with our user base,” says he. makes it all the more important for it to different offices. It has enabled its tele- [email protected]

18 Banking Frontiers August 2020 Insurance 8000 customers engage through WhatsApp IDBI Federal Life is now extending its mobility platform from distribution channels to all its sales channels: nline policies can be looked at as that robotics is being used to ensure faster a distribution channel or as an resolution of customer issues – be it service Oenabler of remote sourcing of new or claims. business. IDBI Federal Life Insurance looks at it more as an enabler than as a channel MOBILITY PLATFORM per se. It has enabled all its distribution The company plans to enable all its channels to source new business using the distribution channels digitally. It has online platform. implemented digital proposal forms instead of physical forms in its leading distribution NEW PRODUCTS ON PLATFORM channels about a couple of years ago. It is All its products are available on the digital now extending that to all its sales channels. platform through mobility. During the Also mobile phones is rather used by all in lockdown, the company has enabled remote the country and the company wants to ride sourcing of new business without actually this wave to enable its sales team – be it the having to meet the customer face-to-face. bank partners or direct sales team or agents Ameet Das, Head – IT & Digital at the or POS partners. company, explains: “We have 3 products Ameet Das says making the mobility available on our online platform currently platform available as a downloadable app Ameet Das and we plan to introduce 3 more shortly. The is the key. “Then we can move to the BYOD sales team uses tablets to digitally source ENHANCING CX space, which becomes critical in current new business. The customer confirmation The company has been using analytics circumstances,” says he. He also adds that is taken via an OTP. This makes the entire not just to increase business but more the company has several vendor partners all sales process touch-less.” importantly to enhance customer of whom are important for it. experience. To increase business, it is TOUCHPOINT TRANSACTION using customer segmentation analytics RISK MANAGEMENT There are various digital touch points that to identify customers who may have the The company’s digital approach for risk the company provides to its customers, need for further life insurance. Ameet Das management is two-fold. Explains Ameet including its website, chatbot, mobile app elaborates: “Some important initiatives Das explains: “One is aspire for best-in-class and partner app. Ameet Das says around deployed during the last financial year cyber security and the second is preventing 75,000 digital transactions happened in include our recommendation engine, which anti-selection by potential customers. The the last financial year through these digital helps customers get recommendations on first parameter has become critical in the touch points. In the last 2 months alone the product best suited for them. Propensity current lockdown / WFH scenario. We try there were 11,500 transactions as compared to lapse/surrender is another initiative to maintain a balance between last mile to 10,000 for the same period last year. The introduced so that we can reach out to the connectivity and security. For the second, other interesting development is the use of customer on time and encourage them not it is an on-going process. We have integrated WhatsApp for customer communication. to surrender or lapse their policies as this our systems with CIBIL and DRC recently The company has more than 8000 would be a financial loss for them.” and plan to integrate with IIB in the registered users on its WhatsApp Business The company looks at CRM more from near future.” Platform in the last financial year. an aspect of enhanced CX. Ameet reveals CLEAR ROADMAP he current IT & Digital team at IDBI Federal Life Insurance is 17 member strong. The The lockdown has brought about a sense Tteams are supported by onsite and offsite resources from its vendor partners. The of urgency in implementation or fast- count of these vendor resources is close to 100. Other than specific technical skills, forwarding of some initiatives at the what Ameet expects from the team is (i) understanding of business needs, (ii) keeping company and Ameet Das believes while an eye open for the latest developments in technology and their deployment by other the company had a digital focus for some companies in the sector, (iii) a sense of keeping costs under control and (iv) maintaining time now, the road map is clearer and it will a constant vigil on cyber security threats. IDBI Federal is also hiring on a need basis. have stick to it. Technology enablement will Ameet indicates: “We are also evaluating gig players and the start-up ecosystem for continue to be a focus area for a significant project-based support.” time from now, says he. [email protected]

Banking Frontiers August 2020 19 Cover Story From

SECURITYTRUST TRUSTto

SECURITY

Just having strong security systems is not enough. Such systems should also create a strong trust among the users:

he year 2020 with the onset of operations balancing security, safety and KuppingerCole Analysts, one of Europe’s covid brought with it a host of technology. leading analysts on information security Tsudden changes many of which are The silver lining amid the dark in the era of digital transformation, traces likely to stay onboard as the ‘new normal’. pandemic clouds has been the role of how even some of the most conservative The World Bank’s latest Economic technology. The digital ecosystem has organizations are now adopting a ‘cloud Outlook from the OECD shows how emerged as the ‘new normal’ especially first’ strategy without bothering about covid’s impact has been both widespread in the financial world. For example, there any time-consuming proof of concept and devastating across sectors and has been a massive increase in uptake of trials. So, while covid is endangering countries. From business owners facing Microsoft’s low code Power Platform lives and scarring livelihoods, it is also supply chain disruptions, liquidly crunch aimed at enabling rapid development. opening up avenues for a tech enabled to salaried individuals facing the harsh Likewise, Microsoft Learn, a platform resurgence remapping the ‘new normal’ reality of a sudden red slip, the times to acquire, update and certify Microsoft for the future. are both uncertain and challenging. To skills, has witnessed a 25% increase in While the medical world fights ride the tide, enterprises, especially in the number of users post covid lockdown. against time to come up with a vaccine the financial sector, are embracing a The stats are similar for other software which is both safe and effective, the new new digital normal that can help them and cloud service providers underlining normal for enterprises is likely to stay for minimize any likely losses and continue the digital disruption as the new norm. good. Changing consumer consumption

20 Banking Frontiers August 2020 habits, more reliance on work from home aftermath of a cyberattack. This will undo (WFH) even in sectors it was alien before years of good work and lead to an instant the pandemic, acceleration of digital trust deficit. It is for this reason that most transformation, reliance of automation and BFSI organizations remain extremely technology are some of such new normal. concerned about cyber security and treat Here is a look at the lifecycle of new it with at most priority, he insists. digital ‘normal’ emphasizing on tech “Cybersecurity continues to hold an enabled security and trust as new normal important space in the discussion in almost pillars in the financial world. all board meetings and management reviews,” he explains, emphasizing the Rebuilding Trust in the criticality of the need. new digital era Giving right feedback to the There is no denying the fact that the management is one of the fundamental covid crisis has shaken a number of Agnelo Dsouza security aspects, believes Manish Pal. things and one of the essential elements A crisis like covid is the perfect “It’s not a question of whether you will be is that of ‘trust’. Thankfully, a deep dive opportunity for bad guys to find a crack hacked. It is a question of when and how into the financial sector shows the trust and breach the financial security shield you will realize you have been hacked,” he element in the Indian BFSI ecosystem feels Agnelo Dsouza, CISO for Kotak stresses, highlighting how digital security to be intact compared to some other Mahindra Bank. “There has been an remains paramount for consumers along countries across the globe. With various exponential rise in phishing attacks in a with organizations and security experts. people from clients, customers, staff, post covid world across the globe,” says Advanced persistent threats, which were industry stalwarts each having their he. With a digital push enabling first earlier a buzzword, is now a routine in the own definition of trust and security, time non-tech savvy customers to adopt life of security experts managing sensitive rebuilding any loss of trust in this new digital means, the risks are high for them data and financial information, he digital environment remains a top to fall for such attacks making it a huge points out. priority for many organizations especially challenge for banks. Manish Pal recalls that delivery of in the banking and financial world. Echoing similar sentiments expressed service, which hitherto was a mixture of Security and trust are very interrelated by Sidhu, Manish Pal, Sr VP - Information physical and digital, is 100% digital in a shares Sridhara Sidhu, CISO at Wells Security, HDFC Bank, says building post covid world and this sudden digital Fargo. With the context of business trust remains the key. Secure delivery of push has brought a huge emphasis on execution changing in a post covid services has always been priority for banks trust since many customers, especially world, risk lengths for businesses have and financial enterprises, says he, adding in the financial space, continue to be also undergone a relative change. “To the onset of digital in the post covid era is sceptical of technology. “To optimize the understand the new risks coming into adding extra emphasis on security which digital push without compromising on the play and how they may impact the end was always in place at the organizational trust deficit is tight rope walk that most customer trust remains paramount,” level for most BFSIs. BFSI enterprises are currently embarking says Sidhu. Every organization today has upon and customers can often turn out its own internal dynamics focusing on Is awareness capping to be the weak link, enabling hackers to plugging in new emerging risk factors and digital frauds? gain an easy access even as the overall so each organization has ever emerging Increasing number of cyber and phishing ecosystem remains tightly secured and challenge on the trust aspect. attacks also mean increasing consumer waterproofed,” he adds. Digital gives value to business but also awareness towards such frauds. Agnelo opens up risk avenues like phishing both in Dsouza sharing his experience feels that Crisis Management plans terms of websites and mobile applications cyberattacks today are well funded helping Most organizations and business entities underlines Nagaraj Solkar, CISO, Bajaj the fraudsters to adopt new technological have had a crisis management plan but Allianz General Insurance for Microsoft means and exploit loopholes to make covid forced organizations to implement Learn, tracing risk in the insurance sector. inroads. “The challenge for security the same instantly without notice, says For any organization, especially in the experts is that they have zero margins for Manish Pal, pointing out that board financial domain, to keep their trust element error and they need to be 100% all the time members, who were till now used to intact requires constant monitoring of any while the hacker needs to be successful periodic updates on security, are suddenly such fraudulent activities ensuring customer in only 1 out of 100 attempts to undo all tracking security and risk mitigation safety, he adds. Maintaining trust therefore our good work,” stresses Dsouza. What’s measures on a daily basis. The more is more relevant for financial enterprises worse, says he, is that the organization frequent the updates and communication over building long term trust. faces a trust deficit by the consumers as an between the crisis management team and

Banking Frontiers August 2020 21 Cover Story

the respective boards, the better it is for the product or service policy, says Manish Pal. overall security system of an organization, An in-house software development team he emphasizes. developing service or products needs to What the board does in the current refurbish the same with changing times scenario can make or break a company’s risk and technology. Likewise, information mitigation. Seeking assurances from the risk security teams also need to update security management team or proactively tackling checklists and all such software changes risk factors may well determine how well must adhere to security protocols as the organization is ready to tackle security, relevant then, he insists. which can impact their trust ratings. It is very possible that technology The one thing majority of board limitations may not allow implementation members across organizations are aware of security protocols as desired. Older of is data breach analysis and report, says applications are therefore not always Manish Pal Sidhu of . The stark reality, 100% complaint in terms of desired he says, is someone could well be sitting individual user had 16 different passwords security protocols. Hence, having a inside the security systems observing in the last 10+ years, yet the data was technology obsolescence plan in place is a the happenings and waiting for the right still leaked in 4 unique attacks and was must where the older software or service moment to attack. There are ample freely available in a hacker’s database. is replaced as the gap between offered and security tools to handle and tackle any “Weakness in the systems is one thing but desired security widens, explains Manish data breaches by tracing data movements. credentials are already available freely in Pal. Monitoring software or services which However, there are only limited tools the dark web for the hacker to exploit,” are ranked low in compliance and yet to available in case the hacker is only an says he. be replaced is what the security teams observant or does nothing, says he, and Communicating to the management must really focus on to avoid any this makes it hard for security teams to about technology weaknesses and unpleasant breach. track them down. vulnerability of data and convincing the Each organization must plan based Sharing an interesting insight Sidhu members to tighten the loose ends is on types of product, technologies used at mentions that 99.6% of data breaches easy, feels Nagraj, insisting that offering the backend, security protocol compliance over the last 10 years have happened due detailed data with solutions is what helps and eventual replacement, he adds, to simple vulnerabilities that were left in most cases. as a golden rule to follow for in-house unpatched for over 90 days. This is known Manish Pal is of the view that the developed products. to most CIOs and CISOs but underlying board on its part needs cyber security Agreeing with this contention, Agnelo challenges, lack of consistent processes training. As a CISO or information security Dsouza says in today’s agile world with and poor monitoring all add up for such practitioner, training the board must be security patches being released often on a breach possibility, he warns, suggesting part of the plan. With many third-party a daily basis, the security practitioners that CIOs must, instead of worrying entities, including government entities need to be agile to assess the risk before about future breaches, take care of what offering such trainings as a service, this time. Automating DevOps and security is known and ensure patching of all such goes a long way in making board members for example is the way ahead to counter common vulnerabilities. This can ensure a to understand risks and proactively adopt this eventuality so that security teams much tighter ecosystem, he adds. security solutions. remain a step ahead in checking possible Having a cyber security specialist on loopholes and communicating the same Board management and board or in the management team helps with the development teams. He says risk mitigation an organization to be more aligned with off-the-shelf products or products from With many board members being non- the strategy and security, feels Sidhu, third parties are often major security technical, explaining to them and who has years of experience dealing with challenge, he adds. He believes many such bringing them onboard can often be a various board and management teams. companies lack a security-first mindset. lesser talked about challenge for security In fact, many global organizations have “While they may be very good at coming teams and experts. already implemented such a move, he up with services and innovative products, For example, email and social media reveals and believes this is a way forward this lack of emphasis on security can often data breaches and landing of data on the for Indian enterprises as well. go undetected,” he says. dark web are not a common topic for Even when security teams find discussion, but these continue to be major in-house versus 3rd party vulnerability in a product, the product risks for enterprises even with timely products manufacturers are slow to update taking patch updates. Nagraj shared a dark web Just about every enterprise has a secure, laid as much as 1 year for next update to vulnerability case study about how an down lifecycle procedure for an in-house breach the vulnerability. This leaves

22 Banking Frontiers August 2020 enhancement cycles, technological aspects all ensure maximum trust, he adds. The work of a CISO or IT team is not just to get the new solution in place. What matters is adoption, says Nagraj. Buying a product with 30 features after long evaluation makes no sense if not all features are eventually to be installed. Monitoring of adoption for any new solution will help escalate the trust element substantially, says he, adding: “Adoption must be one of the biggest Nagaraj Solkar parameters for effective trust building.” Sridhara Sidhu parent companies at high risk for data Looking beyond the sales pitch and Mapping the product software with breaches which shows up with 99.6% features is necessary, keeping in mind an an organization’s security architecture, of breaches being simple risks, organization’s own security architecture, understanding risks and solutions for elaborates Dsouza on challenges faced by asserts Manish Pal. This, he says is the various product lines is the best way security teams. way to escalate trust mapping. “Unless forward, says Dsouza, maintaining that Mis-configuration or time gap a partner has similar synergy towards understanding what a product cannot between patch release and patch fixing security, the tool alone may not be much do is just as important as what it can do. is what leads to high risk vulnerabilities, good for the future. In a world where “Red team exercises based on frameworks agrees Nagraj. companies are acquired or brought out can all help give companies a holistic view by rivals, security focused companies are of risks and product limitations,” says he. Security partners and more likely to retain the trust element,” User convenience versus security trust offerings says he. battles is often a buying point for many With most BFSI and financial entities A software or a product vendor or a products, according to him and the relying on third party experts when it sales team usually promises the moon but Red team exercises can therefore help comes to handling security needs, is it time that alone should not be the only buying balance these protocols helping pick a for having a measurable trust element criteria, says Dsouza. “Understanding desired product which is both secure over and above the security parameters? what one needs as a buyer is essential and optimum. When a CISO speaks to a product before short-listing the right product He says in his experience as CISO with vendor, it is time for them to discuss with available in the market,” says he. As an Kotak Mahindra Bank he understands product developers and engineers and not example, he shares how getting too many that while a CISO’s role is to educate the just the sales people, suggests Sidhu. Such products is a common mistake made by management and the board, security must an interaction by itself can go a long way in enterprises, which eventually end up be understood as a business risk and not enhancing the trust aspect of the product. without having internal compatibility just an IT risk alone. “Once that culture is Getting insights about product roadmaps, between the products and services. embedded in an organization’s DNA, the chances of it having successful trust driven Is it time for a Chief Trust Officer? partnerships increase exponentially,” rom creating CXOs to chief digital officer to chief innovation officer apart from he argues. Fthe traditional CFO, CMO and CISO etc is the time ready for the development Trust is linked to people and not the for a chief trust officer? product in most cases. Having as perfect Changing times bring in newer concepts, believes Manish Pal, and adds that secured product being delivered by a non- the current events like the pandemic crisis definitely calls for a position like chief trustworthy team does not do any good. trust officer. “Privacy, digital and trust have often been associated under the realm Ethics and mechanism of the people of a traditional CISO. But if the ongoing crisis continues, over time there may be handling the product must play a decisive legislation or regulation calling for such a separate entity,” he says. role in inking a partnership or avoiding Sidhu contends that trust is a combination of many factors and not just it. An organization must therefore ensure technology. “So even if the regulations come, having a chief digital trust officer has synergy with the product development a much higher probability than having a chief trust officer so to speak,” says he. team and management as a whole for a Security which can be measured with some kind of a metrics can play a role long-term collaboration emphasizing in the development of such a position, believes Nagraj. Since trust and security mutual trust, security and long valued go hand in hand, such a measure metrics can actually make the position much business partnership. more substantial, he adds. [email protected]

Banking Frontiers August 2020 23 Lockdown Impact Diet and food habits turn upside down Some senior industry veterans recount how covid and lockdown have changed food habits and diet preferences, and also the relationship with the kitchen:

he covid pandemic lockdown, one should be able to has indeed impacted stay ahead, be more productive Tour lives, more so, because to be able to maintain the aggressive, competing physical and mental health is a manager-professionals, who major challenge when you tend leave home early and return to eat more meals,” he says. late, committing everything for “Yes, our habits have career, often forgetting food changed completely because of and rest. Two things mark the the lockdown,” admits Supriya impact - staying at home and Kulkarni, Managing Director having home-cooked food on at Kyzer Software India. “We time. The isolation at home have moved away from stored means sudden lifestyle changes, there have been no major diet out more consistently as a or outside food to cooking fresh including dietary habits and the changes. We being Punjabis, result of not having to spend meals no matter how busy we outlook towards life as a whole. it is normal to gain weight 1.5-2 hours commuting each are through the day with work. There are instances of weight very quickly.” day,” says he. The lockdown has offered loss, quitting smoking, better She says she now likes a great insight into my own physical activity and better to make sandwiches and JUST 2 MEALS capacity to learn and unlearn. health and importantly a whole Investor and consultant I have given up non-vegetarian new attitude towards home- for startups Senthil kumar food to a large extent and am cooked food and cooking per se. Rajendran announces that he now ready to experiment with Listen to what the head of has changed to 2 meals-a-day vegetarian recipes.” data management at the India routine – one around 10 am unit of an MNC bank who and the second one at around 6 SATISFYING EXPEERIENCE wishes to remain anonymous: pm. He also has a changed sleep She says she derives great “There is now more time at cycle: “Now I go to bed around satisfaction from seeing how the hand for me due to no commute 9.30 pm.” family relishes the meals she has - almost 2 hours every day. Besides, regular jogging cooked, “some important part Fitness is always on top of my on alternate days and daily of our daily routine, which I had mind. There have been ebbs. Lucas Bianchi sessions of yoga have come delegated to the cooks because It is not just about food but of the work schedule.” She also also about exercise. I do get experiment Italian and says the experimentations have time now for the exercises. I Mediterranean cuisine in been more with Gujarati and had a static bike, but now I a calorie friendly manner. Mughlai cuisine, and since all at have added more exercising “Instead of regular cheese I home have a sweet tooth, they tools. There were covid cases use cottage cheese or tofu. I try jalebis, rasgollas, churros, in my condominium, hence no have also tried salads. My son, stepping out and that ends up however, likes high calorie doing a lot of cooking with no food,” she adds. help. Being a health freak, this For Lucas Bianchi, had been an opportunity for me. Co-founder & Promoter of I have downloaded a book on Namaste Credit, home-cooked Senthil kumar Rajendran keto cuisine and I also do Indian food has been his forte but now items, which include things he is eating less spicy food, as into his routine. “I find that like paneer pakoda. Fitbit app home-cooked food is less on the 2 meals-a-day regime and Yourfit recipe have helped spices and oil than what is has increased by productivity me. My mantra is healthy available commercially outside. and reduced drowsiness. It is cuisine. As for my husband, “I have also been able to work important that during times like Nagaraj Mylandla

24 Banking Frontiers August 2020 doughnuts and lots of cakes. some 300 push-ups that help For Nagaraj Mylandla, burn calories. It’s like ‘Kal Ho Na Chairman & Managing Ho’ - enjoy home food but burn Director at Financial Software calories too,” he quips. & Systems, covid and the lockdown have not changed A STAY WITH PARENTS much of his food habits or Adv (Dr) Prashant Mali, routine. “I have practiced President & Founder of Cyber having simple freshly-cooked Law Consulting had been vegetarian food at regular locked at his Alibaug farmhouse timings - 3 times a day - for for 3 months because of the Prasanna Manavi years now. This does not get restrictions on movement, but Monica Jasuja changed, lockdown or not. In that at his home now all outside views too. addition, I do take up regular food has been barred and the Monica Jasuja, Head walking and nature watching, whole family depends on home- of Digital & Emerging which have kept me going,” cooked meals. The focus now, Partnerships, Mastercard, says: he reveals. he says, is more on immunity- “For me diet and exercise are A pure vegetarian, Rajesh boosting diet and drinking off the charts with all the extra Bhutra, Vice President - Sales warm water on a regular basis. work during the lockdown.” at VigyanLabs, learnt how to “I believe this has indeed helped “Basically, I have not made us to protect from exposure to big changes. The only thing is I eat the virus. We have given up less these days,” admits Deepak non-vegetarian food after some initial period of time and now Prashant Mali we are on vegan food to avoid any unwarranted health issues. it was a blessing for him. “I Apart from food habits, we also got to stay for 3 months with maintain high levels of hygiene my parents after a long period – continuous washing of hands of time. My whole diet has and use of sanitizers. One changed and I now eat typical big life changer as far as I am Maharashtrian home cuisine. Rajesh Bhutra concerned is that I have started Rice got added on a daily basis regular exercises,” he adds. once, and green leafy vegetables survive on strict home cooked Aniket Sapre, Dy VP – direct from farm is the best Deepak Suri vegetarian diet. “The lockdown Savings Product, part. I could retain my weight Suri, Dy General Manager - has taught us that. I eat admits while diets have become because I skip dinner. However, Renewal & Persistency at Exide seasonal vegetables, salads and tough, he makes it a point to I have a small tummy, may be Life Insurance. fruits and on some days 100% have warm water every morning. due to eating rice,” he laughs. home-made pizzas, pastas and “Afternoon diet is mainly It was a routine during other choice recipes,” says he. chapatis and just some rice for the pre-covid days for Prakash Nayak and his family to eat TIMELY EATING out or order food from cafes or The best part is maintaining restaurants every week, but the food timings, says Prasanna pandemic and the lockdown Manavi, Director, Sales and have changed this for better says Partnerships, India & South Nayak, who is Chief Financial East Asia at UBiqube. “Earlier Officer (India & Philippines) at due to being outdoors and in FIS. “We now confine to home- meetings, I could not maintain cooked food. The good thing is Himanshu Goyal orderly timings. Now I am at my overall health has improved “Diet? Obviously eating home and I am able to eat at a lot,” says he. more!” quips Himanshu Goyal regular intervals,” he says. Aniket Sapre of IBM Watson & Weather Dr Javed Mohnavi, DGM the night. Besides, I do 4-km run THE OTHER SIDE Company. at reveals every day inside the house and However, there are contrarian [email protected]

Banking Frontiers August 2020 25 Lockdown Impact Unlocking Food Tarannum Hasib, Chief Distribution Officer & Director - Marketing at Canara HSBC OBC Life Insurance, narrates:

e have all heard the saying that we had in years. In fact, we even managed ‘you are what you eat’. However, to innovate and create some new recipes Wduring the lockdown, we have of our own. It was a childlike excitement discovered a new extension - ‘you are also to cook new things and decide a daily in the process of preparing the food that recipe. YouTube greatly assisted in this you eat’. path of discovery. Dependence on cooks had been the The reality of covid has also reminded in-thing and done-thing for years at us to make certain, previously on and home but covid and the lockdown have off healthy practices, into daily, and just changed all that. We have been hopefully permanent habits. Turmeric forced to re-evaluate our very existence, milk every morning and the dry fruit mix including our relationship with food. each evening are just some small changes In these times of ‘no domestic help’, we we have made that are contributing to all have chosen to help each other. My husband of us becoming healthier and stronger has learnt to prepare idlis for breakfast, individuals. While we all speak of balanced and my daughter (who shied away from diet, we hardly practice it. This time we stepping into the kitchen for years) is took effort of figuring out the foods which now preparing delicious butter chicken enhance immunity and surprisingly Tarannum Hasib for the family. In my case, because of the discovered that our wholesome Indian hectic schedule and shuttling between onions and someone picking out the meals provide all in abundance. We need work and home, I had forgotten the joy of ingredients while I manned the stove, to follow it. Forgotten grandma’s recipes cooking and the moments of pleasure and is a connection that we had not had the have now come to the forefront. This is a validations that come from it. So, when I opportunity to explore before. Added to big change, the realization that each one made Murg Musallam, after years, a part this is the blessing of having the food of us, despite our age or busyness, needs of me was concerned about how it would together - all the 3 meals and the shared to find time to take care of ourselves, with turn out. The compliments received and teatime. nutritious and balanced foods. the frequent refills that everyone had put Another astounding thing we It’s important that when we step into paid to rest all those concerns and was discovered about food is the sheer variety the new normal and covid is a thing of the worth every bit of the effort. that exists, not only in theme restaurants past, the healthy foods, the clean eating, The taste of the food was just a part but even inside the 4 walls of our house. the innovation with food and the bonding of it. The bond created by being in the The lockdown of a few months allowed us we found through cooking, becomes a life. kitchen together, with someone chopping to explore more cuisines and recipes than [email protected]

BNP Paribas: Reducing Experiential Marketing Digital Leapfrogging Paper, Reducing Pain

Karthi Marshan Rupa Balsekar President & Chief Marketing MD & Head - Transaction Officer, Kotak Mahindra Group Banking, Summary: K.V. Dipu, BNP Paribas India Summary: Karthi President - Operations Summary: Rupa Balsekar, Marshan, President and and Digital, Bajaj Allianz MD & Head – Transaction Chief Marketing Officer, General Insurance, Banking at BNP Paribas Kotak Mahindra Group, in conversation with India, shares insights on explains how the modern Shivakumar Y., Director for Enterprise booming sectors, API banking, fintech payment products are more trustworthy Major Business at Cisco and Babu Nair, roadshows and e-invoice reconciliation. than those in earlier days. Publisher, Banking Frontiers.

26 Banking Frontiers August 2020 Agri Sector Agri Sector Bank of Maharashtra aims for 19% agri credit growth Banks on e-Meets, digitalized land records and post COVID schemes:

ank of Maharashtra has provided Agriculture KISAN E-MEETS total agriculture advances (AA) Ancillary 24% The bank has introduced Covid-19 of `143.85 billion during the year Mahabank Kisan Rahat Yojana for B Infrastructu ended 31 March 2020. A spokesperson for re… Crop Loans farmers and agro-based industries/units the bank said the total amount of AA as 49% as well as Mahabank SHG Rahat Yojana- of 30 June 2020 has increased by `4.96 Agri Allied 4% Covid-19. It has sent SMS to all eligible billion and stood at 17.30% of ANBC. borrowers in local regional languages. Investment The AA has shown yoy negative growth of Credit 20% The bank has also extended RBI relief 4.86%, which is mainly due to farm loan package by way of moratorium of 3 waiver scheme, he added. The percentage benefited under MJPSKY 2019. It has months on payment of installments and of agri infra to total agri has remained at designed special covid products for deferment of interest on working capital 3%, but within that percentage of KCC/ farmers, SHGs and agri-based industries. facilities to eligible standard agriculture STL/other CC and percentage of KCC came The bank has a focus on central sector loans as of 29 February 2020. The down qoq by 1% each, and percentage of scheme of financing facility under the bank has also entered into a MoU with investment credit is unchanged at 36%, Agri Infrastructure Fund of the central the government of Maharashtra for the spokesperson revealed. government. It has launched Special digitization of land records and the bank KCC saturation campaign for agriculture, branches are facilitated / enabled for MANGO, GRAPE GROWERS animal husbandry and fisheries as well digitalized verification and downloading The bank leads in financing growers of as agri gold loan campaign during June- of land records. mango and grapes. The total outstanding July for hassle-free credit disbursement credit for mango farmers in Maharashtra to needy farmers. NPA: RISK MITIGATION stood at `1.84 billion as of 31 March During Rabi 2020 season, the bank has The share of the bank’s agri NPAs to 2020 under 3773 loan accounts, which evolved strategies for fund disbursement total NPAs as of 31 March 2020 is nearly reduced slightly to `1.72 billion as of 30 and is organizing credit camps, especially 30%. It is paying special attention to June 2020.” Mango farmers of Ratnagiri village level credit camps. Credit camps select zones/ branches having high NPAs district lead in outstanding credit, with are planned for investment credit during (>15%) and arranging recovery camps at 2407 loan accounts, amounting to `1.24 October-November 2020 and January- regular intervals. It is also allotting NPA billion as of 30 June 2020, followed by February 2021. There will also be credit accounts among staff, recovery agents, Sindhudurg district (`346.15 million) camps for agri gold loans. The banking BCs, etc for effective recovery efforts and Raigad (`50.46 million). is giving thrust to investment credit, big besides implementation of OTS schemes. The total outstanding credit for ticket size proposals under agro & food grapes growers in the state stands at processing sector, cold storages, rural TARGETS FOR 2020-21 `7.74 billion, with 16051 loan accounts godowns, input suppliers, agri clinic, The bank has set a target of yoy growth as of 30 June 2020. Nasik district leads and agri business centers, and focus on of 19% under agricultural advances in the in outstanding credit in this category financing SHGs. current financial year. It is strengthening with `5.19 billion, followed by Solapur agri investment credit & KCC, organizing (`762.48 million), Sangli (`497.71 SHG & JLG credit camps for KCC as well as investment million), Pune (`475.82 million), and The bank is lending to SHGs and JLGs credit, special attention on top 25 potential Osmanabad (`313.19 million). on a top priority basis with the aim of branches for increasing agri credit and uplift of women through SHGs and rural implementation of area-based schemes INITIATIVES, CAMPAIGNS poor including landless labourers and (eg rice mills, cotton ginning, dal mill, cold The bank is, however, hopeful of achieving Bhoomihin Kisans through JLGs. It has storage, rural godown, etc). It is focusing mandatory target of 18% of ANBC on offered credit to 16,962 women SHGs on agri potential zones across India and quarterly average basis for the current under DAY-NRLM scheme during the agri gold loan scheme, financing SHGs for financial year. It is providing immediate last financial year and 4176 women agri activities and agri exporters in select credit assistance in the form of MKCC SHGs during the first quarter of current zones like Nasik, Pune, Ahmednagar, etc. or term loan to all eligible borrowers financial year. [email protected]

Banking Frontiers August 2020 27 Conference Highlights What blocks the Blockchain growth? Where is the innovation needed? Experts discuss the current scenario & future scope of blockchain in BFSI at Technoviti 2020. Edited excerpts:

Girish Bajaj, Blockchain Evangelist I have seen tremendous improvements in the use of blockchain technology in India, particularly in the BFSI and other sectors. NITI Aayog has done a wonderful job and done several case studies in the fertilizer and healthcare industry. It has done POCs and pilot projects on blockchain. Further, they are moving into live projects in the next few months. In 2016, ICICI Bank did its first blockchain transaction and in 2018 HSBC did its for Reliance Industries. Indian banks are moving forward in the adoption of blockchain. Startups are vibrant and have given very revolutionary ideas on Panelists exchanging notes the use of blockchain. There are plenty of opportunities for blockchain because it is look at the real work and serious projects you must understand that blockchain is transparent, corruption free, cost effective, and there is a talent requirement for it. India many technologies together. and operationally efficient. Blockchain will is considered as a follower, not a leader in eliminate corruption completely and with any technology, and same is the case with Hitesh Sachdev, Head - Startup Engagement, required data to store, you can control blockchain. If you look at all the talent in Innovation & Investments at ICICI Bank: what you want to release. Currently the India, we may be good at Java, Python, or ICICI Bank started its blockchain Telangana government has incorporated C++, but how these and other technologies journey in 2016 when we did some blockchain for land record registries. There can be used to create blockchain solutions bilateral pilot transactions on remittance are POC and live projects going on in the is missing in India. with Emirates NBD. To harness the true other Indian states. The focus from our side is to implement potential of blockchain, we realize that The ROI for the blockchain technology certain real-world scenarios rather than we need to collaborate with multiple is good in India. About 2-3 years ago, it was just looking at something which is just stakeholders. This led to an idea of creating expensive to use blockchain. It is important copy paste from the stakeholder. Recently, a consortium for Indian banks, which to understand which sector you are in and the Maharashtra government has launched will operate and manage cost-effective what blockchain will suit your requirements, farmer lending platforms using blockchain transactions. The DLT infrastructure will then move towards your aim and mission. technology; blockchain as an ecosystem handle large volumes of transactions and The cost of blockchain technology will come will take time to mature. There are certain facilitate seamless integrations. down in 2- 3 years and banks, enterprises made for each other use cases. For example, We approached almost all the banks in and even end users will demand blockchain. trade finance, identity management and terms of joining the proposed blockchain As a service, it is available from Amazon and supply chain finance solutions are multiple consortium and initially we had a lot of Google. Blockchain helps to avoid security value chains which are now on blockchain. challenges explaining the benefits. There were leaks, in terms of controlling what data can NPCI Vajra has a blockchain at its core and concerns like awareness issues, regulation be seen by the stakeholders and which can it is helping to remove the reconciliation and selection of appropriate partner. To be controlled. requirement. overcome these challenges, we created Today channel equation in the various committees like product, technical, Vikram Pandya, Director Fintech at SP blockchain allows you to have a specific and regulatory, all represented by nominees Jain Global: party within a specific transaction to of respective member banks. We also On the demand side, you have financial have access to a specific set of documents. on-boarded a knowledge partner and a law services which are looking for innovative Channelization of private permission of firm, to help us to graph the entire governance solutions. Some of the pilot POCs of blockchain is already there and if you want structure. We created a common rule book to blockchain are just PR drive; we need to to understand about public blockchains, be followed by all the member banks. Trade

28 Banking Frontiers August 2020 finance is the most popular use case where we can use the blockchain technology, because trade finance is paper intensive, prone to frauds and time-consuming. We have all the stakeholders on a single platform now although all of them operate from different technological platforms. If you bring them on a single platform, it harmonizes lot of technical issues. For A view of the attentive audience example, if you want to issue an LC through in the ecosystem. For example, today we looking for moral support. To engage with a bank and discount the bills, it normally have 8-9 products on sharing economy, like rural customers, we can create an ‘earn to takes around 15 days. However, by using taxis, homes and co-working places. Over pay model’ for them. Make them earn and blockchain it will be over in around 2-3 days the next 3-4 years a majority of entities will they will pay back to you, and blockchain and it will also be very cost effective. It will become part of the sharing economy, and kind of technology suits this model. The also mitigate lot of risks associated with we will struggle with the trust issue. model will be more global and will try to trade finance. This platform will become a Blockchain is not something that will come out as per the rural expectations. self-fulfilling trade finance ecosystem. drive your ecosystem but will enable your For example, somebody is taking a loan ICICI Bank is joined by 15 banks to form mobile apps to work smartly. For example, for buying a buffalo. He does not want just the Blockchain Infrastructure Company a centralized device for creating centralized a loan for a buffalo. He expects a support (BIC) and we are incorporating this as a database like KYC. Blockchain can be used system. There will be products derived from separate entity. You will find that banks are in Aadhaar for making the biometric secure - the buffalo like milk, dung etc Blockchain collaborating rather than competing on wherever trustworthy ecosystem is required can be the ideal technology to share the blockchain platform We are planning we can use blockchain. There are different information and data with the customers to use lot of ML while creating insights flavours on how to design a blockchain depending on his specific needs. When we about the data which will come on this platform. You can design it in a public way, have enough information which can be platform. We have we have integrated the like cryptocurrencies. The good part of the shared, we are trying to bring an ecosystem systems of all these banks and fair progress cryptocurrencies is that they have created which enables them to make use of this has been made in creating a common awareness about the blockchain technology. information and do better things. We are infrastructure for use by everybody. Some of Countries like Dubai, Australia and getting confused between security and the banks have already worked in this area Estonia are building ecosystems and use cases authentication. I think blockchain must do and have created this infrastructure and on blockchain. Several universities today offer more with the authentic information. banks themselves are running their own courses based on blockchain. As per a 2019 businesses on blockchain in trade finance Deloitte report, in Asia, there was only 9% Sudin Baraokar, Global IT & Innovation remittance. There are certain banks which adoption of blockchain, and the technology Advisor are on the top of the curve and they are was at a very nascent stage and there is a Trust as a service has a massive scope and using blockchain both in terms of internal long way to go. Today, we can do transactions there are so many other emerging themes use cases and in developing infrastructure on mobile, tomorrow this will happen on coming out, where we can use blockchain. for riding the internal businesses and IOT, that is entire a car or a refrigerator and In my view blockchain is decentralized, participating in their network. blockchain will be the underlying technology. distributed and secured. We still have the system of records and then you need to build Prasanna Lohar, Head - Innovation & Suresh A Shanmugam, Head - Innovation a huge number of systems of engagements Digital Architect at DCB Bank & Future Technologies Business around it. We should create web services and Why do we need blockchain when Information Technology Solutions (BITS), trust applications to work perfectly. Last year internet is already there? The internet Mahindra & Mahindra Financial Services reports, the total amount involved in fraud became open internet in 1995, and today Blockchain is one technology that can in the Indian banking system was `1050 every ecosystem runs on the internet. Today, make an enterprise’s interaction with rural billion. If we have system of integrated we don’t talk about the uses of internet. customers more efficient. The technology records, with trust integrated system of Likewise, by 2035-40 we will not talk about today has a share and care model where engagement by using blockchain, you can blockchain. Instead, we will talk about use the data is getting in to action with multiple develop next-gen apps and services for the cases and will try to adopt particular use hands. Blockchain kind of information financial services. All the bank processes like case. Blockchain has become important is more authentic and serve through one collection, lending, etc can be done using because of some flaws on the internet. model and it is available for them. blockchain. The future is very bright for the Internet is good for the client-server model The rural India is not looking for money, blockchain in India. or as a fun sharing model. We need trust it is not looking for advice. It is actually [email protected]

Banking Frontiers August 2020 29 Covid Impact Pandemic is providing opportunities for insurers While covid can unsettle the traditional, it affords chances for the insurance companies to be innovative: hen the whole world is facing the points in a person’s life like death, illness, prospects of recession and India divorce, birth or even a once-in-a-lifetime Wcan be very badly impacted in travel experience. The still raging pandemic the wake of covid, the insurance industry is one defining point that cuts through all of in general is not very concerned. This is how these, she stresses. Marianne Gilchrist, Head of Life & Health Globals and South Asia, Reinsurance Asia, PANDEMIC MODELLING at reinsurance major Swiss Re, responds Reinsurers like Swiss Re, she says, are when queried about how the covid prepared in managing the surge in insurance pandemic is going to affect the prospects of claims in the wake of the pandemic. She the insurance sector in general. She believes explains: “Knowledge and understanding that with the increase in risk awareness, are critical factors for decision makers insurance penetration should improve when responding to the uncertainty as consumers increasingly recognize the brought along by a pandemic. At Swiss value of insurance. “As a result, we could Re, we have been running pandemic see greater interest in protection products,” modelling to help insurers stay strong by she predicts. significantly increasing the understanding She was in India recently in connection of the financial risks we face and using that with the release of ‘COVID-19 Consumer Marianne Gilchrist believes knowledge to manage our capital over the Survey India Report’, which Swiss Re had insurance agents and long-term.” brought out, providing key insights on Swiss Re’s pandemic model, she says, covid’s impact on the consumers’ health, brokers still have a key role is a probabilistic model, which uses large personal finances and their views on despite insurance consumers data sets to calculate the likely losses insurance during the pandemic situation. increasingly opting for online from different pandemic scenarios. “In About 1000 respondents in Mumbai and purchases simple terms, it is based on understanding Bangalore participated in the survey. the characteristics of diseases, such as Gilchrist highlights the findings of She also expects an integrated digital influenza, that could result in a pandemic. the survey: “More than half (61%) of journey to happen from underwriting, We then combine this with data that helps consumers surveyed had been contacted by purchasing to settling claims, which us understand society’s ability to cope with their insurers, with 65% of them intending she says is becoming more of a necessity a pandemic event,” she elaborates. to purchase insurance as a result. 62% of than an advantage in the increasingly One of the most important features respondents had searched for new policies competitive market. of the model is that it continues to evolve in the past 3 months with 28% of them as more data sources and insights on having already purchased a new policy, IMPACT OF PANDEMIC the pandemics come to light. Currently, making India the second most active of our Does she think covid has demonstrated the model statistically analyzes 50,000 surveyed markets in Asia.” the value of insurance, and this is likely to different pandemic scenarios to see what open up good business opportunities for the impact of a certain strength of pandemic NEW NORM reinsurers like Swiss Re? might be on a modelled portfolio. Gilchrist says post-covid efforts would be “Our survey has highlighted that people She says the SARS outbreak had focused on building resilient societies, and want us to meet them at their point of need. sharpened the company’s focus on this would include designing products that The pandemic has changed the outlook for pandemic risk management. “As one of offer quick pay-outs and attractive add-ons, many people, and what they used to take for the world’s largest mortality reinsurers offering strategic financial guidance during granted may now retain a greater measure with a strong commitment to the Asian uncertain times, explaining complicated of importance,” she responds. life insurance market, it was clear that we products and strengthening consumers’ And she observes that the most life- needed a robust way to model pandemic confidence in making decisions. changing decisions take place at defining risk and understand the financial stress

30 Banking Frontiers August 2020 of large pandemic scenarios. Therefore, in 2006 we started developing our own COVID-19 Consumer Survey India pandemic model. The model allows us to Swiss Re conducted a undertake stress tests on our portfolio - Primary health concerns survey in India* to in a similar way while meeting natural 32% understand how the are overwhelmed and anxious catastrophe risks. In turn, this information COVID-19 outbreak has about their financial future 71% helps to make key business decisions, such impacted consumer are concerned about social disruption as setting our risk appetite or managing our sentiment towards their capital,” says she. financial situation, overall health, and future 67% insurance purchases. If consumers need to cut expenses… are concerned about physical fitness – CHANGED VIEW lack of exercise She says the Indian insurance industry is poised to take a digital leap. Covid, she 76% Opportunities for insurers are willing to sacrifice eating out expenses Value-add features appealing to consumers says, has prompted consumers to review their own personal protection gap and reconsider the merits of stable, longer-term 64% are willing to sacrifice gym membership protection. The survey too has showed that 69% desire priority access to healthcare products the pandemic has transformed consumers’ - e.g. face masks, medication view of insurance products and the way 25% are willing to sacrifice they purchase insurance. And the industry life insurance premiums in India has long acknowledged the urgency 58% of undertaking digital transformation and Demand for insurance has gone up desire access to healthcare services - e.g. virtual GP sessions insurers with stronger digital capabilities searched for will be in a better position to meet 62% new policies What consumers look for in future consumers’ expectations in the future. Gilchrist is, however, of the view that bought 28% a new policy despite the fact that consumers are looking to purchase online, agents and brokers still 70% Insurers actively reach out faster claim process/payment have a key role to play. “For example, when to customers it comes to future insurance purchases, Unsure / Via email / don’t know text prospective customers in India will look 5% more closely at coverage details (54%) and No 32% 65% 34% YES more flexible conditions be more vigilant about having a broader 61% - e.g. additional healthcare providers added to cover range of cover (47%). This underlines the 29% need for expert and trusted advice and Via phone highlights the ongoing importance of 65% of customers who were 51% think processing policies intermediaries in customer engagement, contacted by insurers showed online from start to finish is a top intention to buy insurance consideration for selecting an insurer especially when customers are unfamiliar * Swiss Re commissioned Ipsos to survey 1 000 residents in the Indian cities of Mumbai and Bangalore in the last week with their specific protection needs,” of May 2020. The data was collected via smartphone, laptop or tablet devices. she adds. Swiss Re conducted a survey in India to understand how the covid outbreak has impacted consumer Finally, how will insurers tackle sentiment towards their financial situation, overall health, and future insurance purchases. Some the impact the pandemic has caused highlights of the survey: on investment portfolios of insurance companies and delayed premium payments downside protection matters. off in March. We also saw several broader authorized by the government and defaults? She cites Swiss Re: “For us at Swiss market indicators of why a sustainable Gilchrist quotes Winston Churchill Re, one thing is already very clear – portfolio is a more resilient portfolio.” to say ‘we must make sure this crisis does sustainability drives resilience. In Q1, our She adds: “By shifting capital towards not go to waste’. She says from a financial investment portfolio was able to weather sustainable investments and rebuilding markets’ perspective, fluctuating asset the storm specifically because we had been in an inclusive and climate-friendly way, prices and changing consumer demands decisive about taking environmental, social, we get the benefit of protecting our own present new investment opportunities with and governance (ESG) criteria into account portfolios, while contributing to a more large upside potential emerging. While the early on. Our credit and equity benchmarks resilient world – helping both ourselves and pandemic is stressing systems and exposing outperformed their traditional equivalents, the systems around us.” vulnerabilities, it also reminds one why even more so during the big market sell- [email protected]

Banking Frontiers August 2020 31 Serving the Unserved CAGR Growth: Outlets: 35%, Customers: 52% PayPoint has more than 100 service providers plugged into the company’s system to interact with the customers on a real-time basis: ayPoint India’s digitally connected to over 12 million customers till now. network of offline stores offer Because of this, many new customers Pvarious financial services like have come to the platform even in these PMJDY accounts, micro ATM services, times of the pandemic, he adds. wallets (Paypointz), remittances, bill PayPoint’s staff members provide payments, insurance, merchant QR and periodic training / awareness programs others. It also offers consumer services for the retailers as well as its financially to the underserved like travel booking, weaker sections, which are the customers. recharges, Amazon assisted shopping, The awareness programs include inputs gift cards, etc, through its strong network on financial literacy given in the model of retail stores spread across the country. training program framed by RBI. Says What is unique about the services is that Doshi: “Language is not a barrier because it is a plug-and-play platform and has a our employees and retail partners are large base of customers and retailers. usually local residents. In addition, Ketan Doshi, Managing Director of we have our call center and chatbot the company, says the retailer-driven to help our customers. We have our assisted model adopted by the company own in-house IT managed by our own helps customers make informed decisions team that is technologically sound and for availing services from their trained Ketan Doshi avers that data trained for handling the latest versions partners and its digital platform. “Our analytics and CRM have and innovations.” primary objective is to bridge the financial inclusion gap between developed urban played a big role in the growth ONLINE CRM TOOLS India and under-served rural India,” of PayPoint’s customer base PayPoint offers all services digitally says he. using its IT own infrastructure. The The CAGR of the company’s customer desktop, laptop, tablets, mobile phone, PoS transaction platform is enabled with all additions in the last few financial years device, QR code, and our own e-wallet,” frontends like web, App, PoS and QR. It and incremental growth are significant. says Doshi. uses biometric readers and micro ATMs. At the end of FY 2020, PayPoint outlets Says Doshi: “Our transaction platform is served over 22 million customers. Doshi TRAINING, AWARENESS vibrant. In fact, most used in the period says the present number of retailer / Even during covid times, PayPoint’s of covid was our biometric system with franchisee outlets across the country is retailers and employees have been mobile connectivity. All our customer 48,000+.and the CAGR over the past 5 rendering service to the customers support staff uses online CRM tools years is 35% and the CAGR of increase without interruptions. The service it helping in seamless support even during in customers served by them is 52%. delivers is considered to be an essential the prevailing situation.” More than 100 service providers are service by the government and Doshi Customer retention and satisfaction plugged into the company’s system and it says since the time the lockdown was is of prime importance at PayPoint. interacts with them on a real-time basis, announced, the retail partners and A customer complaint is treated very catering to more than 4 million customers employees have been providing service seriously and resolved immediately. every month.

TECH PLATFORM All transactions at PayPoint’s retail outlets happen digitally through its tech platform. It is a holder of RBI licensed PPI/ wallet. “Our customers have faith in us because our IT platform is very robust. Transactions happen smoothly, seamlessly and in real- time. Our success rate for transactions is 99.99%. Our retailers can access our server through various channels/ mediums –

32 Banking Frontiers August 2020 Data analytics and CRM tools play a big role in the growth of the company’s customer base as well as increase in the pocket share.

ENHANCED DBT The prevailing NBFC crisis has not affected PayPoint because as of now it is not into credit business. It has partnership with some of the best and PayPoint delivers banking services in many districts in Assam submerged by the floods largest banks in India. Says Doshi: “Covid crisis did affect us to some extent but we OUTREACH: SMALL TICKET SIZE It is also offering free health consultancy got over it very quickly. AePS/ micro While insurance agents normally shy away (telephonic) for the employees, their ATM and other withdrawals from bank from small ticket size insurance policies families and 42,000 + retailers. accounts increased because of enhanced because of low rates of commission, DBT. Our other businesses also picked up PayPoint has successfully managed to PARTNERING ALT BALAJI quite fast.” sell such policies both in urban and rural Aiming to deepen its market presence areas thereby increasing the insurance and penetrate new markets, PayPoint has INSURANCE PRODUCTS penetration in these areas. This was done entered into a strategic partnership with PayPoint has started offering insurance by ensuring handsome compensation ALTBalaji, Balaji Telefilns’ subscription- products through its vast distribution for the retailers associated with the based video on demand platform, for network of retailers. Doshi says the company by cross-selling various other OTT subscription. This initiative is company has tied up with many services such as utility bill payments, primarily for the rural and semi-rural insurance companies and is offering DTH recharges, mobile recharges, air markets with a set of viewers who require multiple insurance solutions - life and bus ticket bookings, etc. This allows digital-assistance and offline subscription insurance, general insurance and health retailers to get rid of their dependency payment options. Says Doshi: “The offline insurance. As all the offerings are made on a single product/service to earn their recharge for video-on-demand service is using technology, customers get the livelihoods and diversify the offerings as the first-of-its-kind industry initiative. cover without any time lag. “We are now well as earnings. The association will help ALTBalaji authorized to distribute government- As covid has wreaked havoc and achieve higher subscriber base, while we sponsored insurance schemes including average citizens are scary about its will be adding one of its kind products to Pradhan Mantri Jeevan Jyoti Bima implications, especially the charges our kitty of services.” Yojana (PMJJBY) and Pradhan Mantri involved in case one has to be hospitalized, Suraksha Bima Yojana (PMSBY). Our which are abnormally high, PayPoint has IT-DIGITAL TARGETS, PLANS trained staff educates users about the come up with a plan to pay as much as For PayPoint, data center upgradation benefits of these schemes free of cost,” 50% of cost of the insurance policies is a constant process. It has no plans to says Doshi. taken by its employees for the purpose. adopt the cloud or virtualization. It does not intend to introduce digital payment Banking in Assam Floods systems in the current financial year. illages of many districts in Assam have been submerged by the ravaging floods Doshi says data structures are regularly Vin river Brahmaputra. The poor villagers have no access to any kind of service reviewed and major activities are planned and have run out of cash to buy even things of most basic requirements. In these in the coming year. The company has difficult times, Kashem Ali, a customer service provider of PayPoint India, has been the facility of doing e-KYC by using rendering yeoman service silently, in his own small but innovative way, in Barpeta Aadhaar. This is a fool-proof method district of Assam. Every morning, says Ksetan Doshi, he sails on a local boat with his that is approved by RBI for the purpose laptop, dongle for internet connectivity, fingerprint scanner, basic printer, etc. for over of AML/CFT. Still there is no clarity from 6 kilometers in the dangerous and fast flowing waters of the river to provide banking the regulator about video KYC. He also service to 7 villages. says APIs are being extensively used by As PayPoint India delivers banking service in alliance with SBI, Kashem Ali is able to the company. provide all the basic banking services, including withdrawal of funds from the accounts “Despite the covid crisis, it is our of other banks also. Doshi louds his efforts: “Lauding his efforts, Doshi says he has been endeavor to at least maintain our current providing this service daily, putting his own life to great risk, to over 2,200 residents of growth rate if not improved, in the these small and inundated villages at a time when the villagers have no other means current financial year also,” says Doshi. to access their own money lying in their accounts.” [email protected]

Banking Frontiers August 2020 33 Rural Focus Aiming for automated decision making with minimum human intervention Paisalo’s credit matrix algorithms provide better risk management by using AI & ML for analytics:

aisalo Digital is a category B stone for adopting artificial intelligence non-deposit-taking NBFC and machine learning integrated Pwith 116 branches across 10 processes that drive efficiency and provide states and like any frontline financial a seamless and easy experience for the services institutions it uses technology borrowers. The initiatives on artificial to evolve and grow business effectively intelligence and machine learning were and efficiently. For, it believes that a started in January 2018. strong technology backbone is not just a Says Agarwal: “Since the deployment standout measure but a solvency factor. of ML and AI based analytics, our credit Digital has always been a big part of matrix algorithms for credit, credential its strategy. And speaking about the and character check have provided better tech infrastructure it has created, the reliability in terms of risk management company’s Deputy CEO Santanu Agarwal and risk underwriting. We have constantly says the focus has always remained to been upgrading the customer on-boarding digitally transform the business even as ensuring that technological solutions are simple, effective and efficient that they Co-originating PSL make the customer experience unique, aisalo has signed a co-origination robust and trustworthy. Santanu Agarwal reveals that Pagreement with State Bank The company’s digital strategy had Paisalo is in the process of of India, its first, for creating and been under development, improvement deploying one of the country’s first and implementation since 2013. It deploying external support digital co-origination platforms. SBI started digital signing of loan documents to scan through borrower contributes 80% and Paisalo has to in January 2016. Says Agarwal: “In applications contribute 20% of loan value under fact, we were among the first NBFCs in the co-origination model. Risk and the country to do this. Our model was onboarding of borrowers. Online efforts reward sharing too is in this ratio. Says based on high tech and high touch; we for marketing are limited to maintaining Santanu Agarwal, CEO, Paisalo: “Our believe that technology is an enabler and social media presence. Currently, its biggest accomplishment in terms of logic-based solution provider. While the IT team consists of 10 people. And the digital strategy for FY 2019-20 was technology integration between physical touch allows us to maintain close company mainly operates in tier 3 and SBI platform and Paisalo platform proximity and ears to the ground reality, below centers and hence social media and for co-origination of priority sector which is extremely important to develop, other apps do not help its credit matrix loans (PSL). SBI’s low cost of funds we have deployed and demonstrated real algorithms much for analysis.” and our low cost of operations result world performance of the technology.” Its total serviced customers are 1.5 in lowest borrowing cost offering to Paisalo, a listed entity on the stock million, out of which current customers the bottom of pyramid customers. exchanges, does not use distributors, are 400,000. Its area of operations covers So, technology at Paisalo has been agents or any other third party for Delhi, Uttar Pradesh, Uttarakhand, fairly successful, but in today’s sourcing, servicing and recovery. Agarwal Haryana, Himachal Pradesh, Rajasthan, dynamic society and ever-changing points out: “We operate Paisalo app on Punjab, Bihar, Gujarat and Maharashtra. technology, we are constantly going intranet rather than internet to achieve to spend on R&D and deploy more sourcing, servicing and recovery. 100% DATA ANALYTICS efficient and effective technology cases are sourced and serviced via Paisalo Paisalo has taken up several initiatives ssytems. Digital is very much app since January 2018.” in the last 1 year, implementing a robust, important for accomplishing a scalable and trustworthy technological scalable lending model with effective LIMITED SOCIAL MEDIA architecture. These initiatives have and efficient risk aversion.” Paisalo does not do online marketing for become the foundation and stepping

34 Banking Frontiers August 2020 and service technology architecture to give it a quick, easy and more paperless customer sourcing and servicing experience for our borrowers. It utilizes proprietary and in-house developed digital workflow and management platform. These initiatives have yielded good results by providing efficient expenses management and elevated profits. The learnings from this are now being introduced in the business across the financial products offered by us, thus helping save time, resources and errors, and providing a pathway towards automated-decision making with minimum human intervention.” The company understands that data analysis with minimal and only statutory personal information storage is and Paisalo Digital Limited Enables MSME Priority Sector Loan by important. Data analysis is increasingly Co-Originating Loan Agreement playing a role in taking efficient and effective decisions. Agarwal says the protecting its as well as borrowers’ data to support this sector as well as MFIs by company is accessing data from internal which underlines the need for a fool-proof providing liquidity to them. “NBFCs like and external sources to understand system of security covering its technology ours undercut the local moneylenders the borrowers and their geographical, infrastructure for ensuring that there is by a huge margin with our deep-rooted demographic details and their historical no unauthorised and unwanted access presence, and we are in a sweet spot and current performance. Further, it is in to or misuse or spillage of data. Agarwal for leveraging the growing capabilities the process of deploying external support says the company uses experts and of India to provide loans and other to scan through borrower applications, experienced in-house team to manage its necessary financial instruments to grow he adds, revealing that it uses internal cybersecurity program, which includes and nurture their income generation data to support all the points of decision protecting with multi-layered security business and embark on India’s economic making relating to credit, credential control, 24x7 monitoring, quick recovery growth,” says he. and character check. The company of operations in case of a breach. [email protected] has partnered with credit information bureaus CRIF Highmark and Experian. SUPPORTING MSME Agarwal states that the company’s funding Building Board CYBERSECURITY PROGRAM MSMEs has continued uninterrupted Enrolments Paisalo understands the importance of during the lockdown and it will continue - A CISO’s perspective Leveraging Design Thinking t Paisalo, borrower experience is regarded as a key pillar of success and for Aensuring timely recovery. The company has continued to build a customer- centric design thinking across its financial products, customer servicing, customer management and customer recovery. Says Santanu Agarwal: “To drive and achieve this agenda, we hire focus groups to give feedback on our Paisalo app that borrowers use. We have developed bilingual intranet apps so that the branch staff is efficiently and effectively able to source and service customers. We also provide door-step recovery from borrowers, so that the burden of coming to the branch does not hamper the business of the borrower. We have many more such Summary: 6 CISOs from efforts through which we are continuously responding to the evolving borrower BFSI sector discuss how needs. We are institutionalizing these processes across the company to ensure a best they can align with top seamless experience for all our borrower segments throughout the value chain.” management regarding The company’s IT capex is about `60 million and opex is `3 million with a yoy strategies and execution growth in opex at about 6%. to measure and mitigate various risks.

Banking Frontiers August 2020 35 Research Notes Covid Response: Gartner’s 4 Best Practices for BFSI Gartner analysts Ali Merji, Gladys Yeo and Leeann Ji recently published a report: ‘How Asia/Pacific Banks Responded to COVID19 and What CIOs Can Learn’. Here are some highlights and examples from the report:

nalysis of how Asia-Pacific banks Managing Four Levels of Response responded to the covid19 outbreak Ahas yielded 4 key imperatives. BFSI CIOs have had to take on new Have we taken actions to prepare the business for future growth by identifying responsibilities and make quick decisions 4 new customer needs or new employee Evolve the needs for the future? related to preserving the business, meeting Business highly emotional customer needs, keeping Have we invested in the right intiatives to 3 increase business resilience and monitor clients and employees safe, and supporting new trends in the market? Mitigate employees in new ways of working. Many Business Impact banking leaders continue to navigate Have we implemented and invested in the right tools and processes to keep morale through this unfamiliar environment and 2 up, maintain productivity, and minimize Maintain Productivity, Morale and disruption and delivery of service to look to Asia-Pacific as a source of learning, Minimize Disruption to Customers customers? because the region was exposed to covid 1 Have we implemented business continuity impacts much earlier than the rest of the planning and pandemic planning measures Ensure the Safety and Health to keep employees and customers safe? world. This research explores how banks of Employees and Customers and investment firms in Asia-///Pacific have responded to the pandemic, and derives lessons learned for banking leaders information provider by instructing them. The bank also shared messages of around the world to use as a guide to customers to wear face masks and observe gratitude to unsung heroes on its tower and formulate their own strategies. social distancing. Following the SARS dedicated it to those who ‘care for us, keep BFSI CIOs must now proactively outbreak in 2003, some banks in Hong us going and give us hope.’ think about emerging market needs as the Kong and Singapore had developed and situation progresses and about the financial practiced pandemic scenarios in their BCPs Practice No. 2: Maintain Productivity and economic impacts that will follow. that included remote and split-site working & Morale; Minimize Disruption to For example, DBS Bank is engaging with arrangements. Customers startups Oddle and FirstCom Solutions to To counter covid, the Postal Savings CIOs should maintain transparency provide food and beverage establishments implemented pandemic about service delays and proactively reach with the ability to set up an online presence control measures in its branches across out to customers to inform them about relief in just 3 business days. This will help food the country. These requirements included programs. CIOs must also remove barriers and beverage businesses, especially those having both staff and customers use face to accessing help and enable customers to new to e-commerce, to quickly amplify masks, disinfecting the branch 4 times confidently switch to online self-service social media marketing and offer delivery a day, rotating service staff to ensure channels. service to sustain revenue during the crisis. continued in-person interactions, and For example, Westpac uses Twitter to Gartner recommends 4 best practices frequently taking the temperatures of staff update its customers on processing or call for CIOs, as shown in the diagram. and customers. center delays due to significant demand for Four Best Practices for Pandemic Shinhan Bank and most other Asia- its financial support packages. The bank’s Response - Gartner Pacific-based banks post covid updates on website also has a continually updated banner their websites that instruct customers to notifying customers of high call volumes and Practice No. 1: Ensure Safety & Health of use drive-throughs and social distancing linking them to resource pages based on Employees & Customers measures if they need to come to the bank. their needs. To alleviate pressure on certain Banks and other financial services firms HSBC Hong Kong published an article channels, Westpac uses Twitter to encourage implemented measures to ensure essential highlighting the efforts of 2 employees customers to use online and mobile banking physical channels were available to support who regularly checked in on their branch channels to help wherever possible. the immediate needs of customers. Banks colleagues and even invited a psychologist launched a proof-of- also took on the role of educator and to host an online counselling session for concept trial of its digital ID service, which

36 Banking Frontiers August 2020 uses facial biometrics and device location when cost optimization and investment push higher usage of its API stack to expand information for online authentication and decisions are to be made. its footprint. ongoing customer due diligence. For example, Hang Seng Bank in China (UOB) is offering As a majority of ANZ’s employees opened branches in February 2020, but few its digital platform, UOB BizSmart, at lower transitioned to working from home, the customers came to conduct transactions in prices to its customers. UOB BizSmart bank’s CEO encouraged headquarters office person. Instead, customers exponentially provides a suite of integrated services that staff to avoid using certain systems. This increased their use of Hang Seng Bank’s enable businesses to remotely manage freed up limited bandwidth for frontline mobile, online, telebanking and electronic multiple core processes, such as sales, employees to respond quickly to customer banking services. As a result, the bank invoicing, payroll and accounting. needs and requests. As a result, ANZ’s covid committed to promoting and launching Bank of Jilin in China created a wealth customer hub was launched on the website more digital banking capabilities in the management product for pandemic control. within 72 hours. retail banking and wealth management The product invests clients’ assets into in Hong Kong is business lines so that customers don’t epidemic prevention assets. promoting its new My RM tool as a way have to come into the branch. This also launched 3 new products for customers to invest and interact with prepares the bank for any future pandemic to support farmers, poultry producers and relationship managers through digital waves (or other crises) and accelerates workers in the informal employment sector channels. The My RM function is embedded the transition to a higher percentage of during the current crisis, using various into Standard Chartered’s online and digital interactions. government-supported relief programs. mobile banking platforms, and it enables Standard Chartered clients are using Standard Chartered signed a strategic private banking clients to speak with their bank data to drive analytics and create agreement to introduce the Infor Nexus relationship managers through texts and realtime dashboards, creating innovative network to the bank’s clients to ease supply audio calls, live share files and documents, solutions to enhance its clients’ experience. chain friction, while offering suppliers and access market trends. Alibaba Group created flexible job much-needed capital. Krungsri (Bank of Ayudhya) through openings and an employee-sharing scheme BNP Paribas co-created digital tools its consumer loan unit publicly announced among its affiliates, in addition to providing in collaboration with corporations and its commitment to prioritize financial merchants interest-free loans via its banking fintechs for reconciliation and cash assistance over business growth, predicting arm MYbank. It also provides businesses forecasting. One of the tools aggregates that the business will contract for a full access to various resources in the Alibaba payment information from e-wallets into year. As part of its debt-restructuring plan, ecosystem free of charge, including Taobao a single reporting format and feeds it into Krungsri’s consumer loan unit automatically Live services for all offline merchants, transaction management systems and ERP applied its debt moratorium to all customers online courses from Taobao University platforms for seamless reconciliation. and lowered interest rates for personal loans, and proprietary services from its logistics [email protected] with the condition that customers use the provider Cainiao. bank’s mobile app to apply. Tencent, through its insurance arm Practice No. 4: Evolve the Business Model WeSure, launched a covid medical worker Covid could result in new customer Agile Transformation insurance plan on January 29 with AXA behaviors and attitudes in the near future. and DingXiangYuan in China, which pays Firms must identify these new customer cash compensation upon diagnosis. Over behaviors as they occur, as well as the extent 100,000 medical professionals across to which the behaviors are entrenched China signed up for the plan within just one within each local market. In addition, week of its rollout. banks should expand their footprint in less profitable segments by connecting

Practice No. 3: Mitigate Covid19’s customers to government relief programs. Sunita Handa Kunal Kaul Business Impact This mitigates risks for the bank, while CGM - IT Channels & Director Enterprise, CIOs must improve real-time listening serving the needs of customers. Opeations, SBI CISCO to detect shifts in customer sentiment. As For example, ICICI Bank in India Summary: Surviving and sentiments and behaviors change, banks developed a suite of digital banking services thriving in a tough situation should focus their data analytics capabilities and APIs that enable customers to access calls for transformation on monitoring consumer trends. CIOs over 500 banking services on the bank’s app with agility. India’s largest should align data analytics investments or website. The ICICI stack includes online bank SBI has chosen to transform towards digital excellence to with current and future business goals to account opening, which noncustomers can meet the sudden impact of corona and encourage stakeholder support. CIOs can use to access the bank’s virtual services. lockdown. then use the insights to prioritize initiatives The bank is using this opportunity to

Banking Frontiers August 2020 37 Cooperative Cosmos Bank revamps digital agenda Rolls out online, mobile and social banking extensions to core offerings:

osmos Cooperative Bank has 140 cards, ATMs, PoS, alert facility, branches and 138 ATMs. It is cheque truncation system and straight Cplanning to add 10 mobile ATMs through SWIFT, NEFT and RTGS services. as well as 40-50 recyclers with the cash The bank’s IT capex for the last financial deposit facility. Chairman of the bank year was `140 million and opex was `280 Milind Kale says the bank has designed million. In the current year, the bank has the infrastructure considering the growing budgeted a capex of `150 million and opex customer transactions on digital platforms of `300 million for digital initiatives. in the next 5 years. The bank’s daily average count of NEFT transactions has increased ELECTRONIC GADGETS to 14,528 in FY19 (amounting to `1.49 The bank’s employees are using tablets, billion) from 8689 in FY17. Similarly, daily micro ATMs and mobile ATM vans for RTGS transactions too have increased to offering various services to customers since 1554 (amounting to `4.17 billion) from 1276 2016. Kale says by bringing in paperless during the same period. IMPS transactions account opening in the under banked and have more than trebled to 4116 (amounting unbanked areas, customers can now open to `50.01 million) and UPI transactions an account by using their Aadhaar number to12,161 from just 863 2 years ago. and biometric/OTP authentication. At Milind Kale indicates that due micro ATMs, customers can withdraw and PAYMENT APP SOPAY deposit cash and make various utility bill The bank has revamped its agenda for to the lockdown, closure of payments, recharge their TV and mobile digital banking. Kale says the bank has industries and businesses, rolled out online, mobile and social banking there has been a decline in extensions to the core offerings in an effort digital transactions to respond to the changing consumer demographic. “We have gained several purchases made at stores that accepts UPI- benefits with strategic use of the technology, based transactions. The user has to link his which include improved usability by the bank account with SoPay by entering UPI customers, securing the engagement pin before making transactions through the experience, operational excellence, app. Says Kale: “Transactions made using reduced turn-around time, reduced cost of SoPay are simple, safe and quick. The app operations and leveraging location-based comes with a range of innovative features, personalized services,” he adds. like direct transactions from and to bank While these IT initiatives are available account and instant money transfer.” to customers, the bank has found that “Because of the lockdown and closure UPI is gaining popularity among the of industries and businesses, people have customers. Youngsters as well as middle- no chance to do transactions other than aged customers prefer the user experience for buying essential goods, and accordingly of net banking as well as NEFT/RTGS. Kale we have observed a decline in digital says considering the growing popularity of transactions,” observes Kale. the UPI platform, the bank has launched SoPay, a new digital payments application, DIGITAL FOOTPRINT developed on UPI platform and available To align with the bank’s business strategy, for both Android and iOS users. SoPAy is the bank’s IT team has created a wide different from a mobile wallet in the sense variety of digital offerings for customers - that one cannot store money in the wallet and UPI, AEPS, tab banking, mobile banking, money is deducted or added directly from eKYC, NACH, APBS, IMPS, customer customer’s bank account. It allows users to communication portal, eLocker, internet send money, receive payments directly into banking, self-service customer kiosk, CRM their bank accounts or make payments for and lead management solutions, RuPay and

38 Banking Frontiers August 2020 Transactions made using SoPay are simple, safe and quick connections. Various account servicing requests such as balance enquiry, mini- Extensive Training for the Staff statement and account updation can be osmos Bank conducted trainings for its own staff and those of other UCBs on done at these micro ATMs, putting banking Ctopics like digital banking transaction flow, card issuance and c acquisition, UPI, services within easy reach of customers. IMPS, EMV, NFC, QR code, fundamentals of card issuing business, technical risk Direct benefit transfers of government associated with various digital payment systems, security measures to be implemented welfare schemes into beneficiary accounts by the banks and cyber security. Kale says the bank would like to conduct training for are also done through the micro ATMs. At its own staff on topics like fundamentals of digital payments and available channels, origination ends of remittance corridors, National Financial Switch providing interoperability for ATM transactions between banks, ATM service management and best practices, .card schemes & settlement customers can now easily remit money for Visa, Mastercard, DFS, JCB, CUP, Amex and RuPay; Card Scheme & Settlement to bank accounts of beneficiaries across of RGCS (RuPay Global Clearing & Settlement) for transactions done on POS & ecom the country through micro ATM, while at channels by using different cards, DBT, services available through internet and mobile the receiving end, beneficiaries can easily banking and platform used for cashless transactions using RFID Tag. Trainings, he access their accounts to withdraw the same believes, will help product penetration and create safety and security awareness and at the local Cosmos Bank micro ATM. new business opportunities. “We want to train our staff on the existing digital channels Kale lists certain key advantages for in details in order to increase the penetration of the e-banking products and services. the bank in equipping employees with We like to create awareness about the technical risk associated with various digital electronic gadgets: “We can offer additional payment systems and security measures to be implemented. Also, there is a need services like cross selling of products, to train staff at branches on how to onboard societies and merchants onto the new expand our services to remote and rural channels by using third party UPI application TimePay.” areas and undertake the vital exercise of financial inclusion and provide safe and to decrease in monthly income of people and efficient mechanisms for making and this may have a huge impact of small savings receiving payments with minimum risks and large investments by various customer to the bank, service providers and end segments. “We have not introduced online customers. Besides, paperless transactions credit but offered new schemes to avail are possible, achieving reduced turn-around the special credit - like 10% ad hoc limits, time, and increased customer satisfaction curtailment in margins, etc,” says Kale. even while reducing infrastructural cost and increasing customer loyalty.” DIGITAL PLANS IN 2020-21 Kale emphasizes that the bank has ONLINE FD almost all the digital products that banks In 2019-20, the bank opened 7250 online normally offer. “We will now focus on FD accounts, amounting to `771.7 million, better penetration among various customer and 1892 online RD accounts, amounting to segments and create awareness about the `6.3 million. In the current FY as of June 487 online RD accounts, amounting to `1.6 use of digital platforms for day to day 2020, the number of FD accounts opened million. Kale feels that the irregular income transactions,” he adds. were 2198, amounting to `226.6 million and or curtailment in employment, would lead [email protected]

Banking Frontiers August 2020 39 Cooperative Widening Digital Footprint, Deepening Customer Engagement Gujarat’s apex cooperative bank is extensively creating awareness among customers of DCCBs and UCBs about digital alternatives:

he Gujarat State Cooperative cashbacks and offers, Bank has an IT vision to take all is done extensively. We Tcooperative banks in the state under have been giving offers one ‘Technology Umbrella’ so as to support on all marketing / smaller banks in providing the latest promotional channels, services to their customers. According to including social Ajay Patel, Chairman of the bank, the bank media, to encourage strives to leverage technology to provide users to opt for digital services to the masses by adopting digital payments. Technology ecosystem combining elements of customer at the back end has centricity, convenience, affordability, been strengthened to social, mobile and innovation. The bank take care of increased volumes of digital is providing its customers EMV Platinum transactions. Our staff is working overtime RuPay card services and has launched PoS to increase digital banking subscriptions services at very competitive rates and full- by customers.” fledged mobile banking. Says Patel: “Latest PoS terminals MOBILE BANKING UP (broadband / GPS / mobile) are now a Ajay Patel He says the bank’s focus this year is to part of our digital portfolio. Apart from make digital banking more acceptable to retail banking customers, close to 170 motivate them to switch over to digital the customers, mostly by changing their banks (DCCBs and UCBs) are utilizing methods. Customers of cooperative banks mindset and getting over their hesitation our internet banking service for their daily come mostly from rural background and are to use technology. Thebank has already settlement and reconciliation process. We semi-literate. Educating and encouraging implemented a new user interface for have also launched a mobile banking app them to use digital banking is a big challenge internet banking, which is safer, more with a new customer friendly interface and as also how to minimize loss of business even secure and user friendly. Bharat Bill Payment Services and Bharat while decreasing footfalls at the branches.” The bank has recorded increase in the QR services have now been integrated with number of transactions at its ATMs – from our mobile banking platform. We are also AWARENESS CAMPAIGNS 63,009 a year ago to 70,503 as on March 2020. live on/ UPI services and among the few For corporate customers, the bank gives The total number of customers registered for cooperative banks to do so.” several free services including RTGS/ mobile banking too had increased to 6917 NEFT. For retail customers, it has been as on March 2020 from 4656 aa year ago. CHALLENGE FOR COOP BANKS enhancing the awareness of digital banking The total number of RTGS/NEFT/IMPS/ In the aftermath of the corona pandemic, through personalized communication from UPI transactions too had increased to 19,546 every industry, including banking, is coming branch managers as well as discouraging from 4965 a year ago. The total value of all to terms with and adopting to the new branch visits and facilitating transactions these transactions had increased to `251.3 normal and tackling the challenges thrown through digital means. Customers are also million from `90.1 mn during the period. by the unprecedented situation. Gujarat State being informed about the extended timings The contribution of transactions in terms of Cooperative Bank too is not an exclusion. of services like NEFT. The bank is also value is highest by NEFT (`83.47 million), Patel says some of the major challenges faced reinforcing the need for customers to switch followed by IMPS (`78.01 million), UPI by the bank were cash handling by customers, to digital transactions through campaigns (`51.21 million) and RTGS (`50.53 million). which involves risk of spreading infections. using various communication channels. “From these figures, you can make “How to decrease cash handling by customers Says Patel: “Educating customers on out that there is a big jump in digital on a daily basis has been a challenge. Many fringe benefits associated with making transactions since February 2020, which customers are not aware / not comfortable digital payments for utility bills, recharges, implies that our efforts are giving the right with technology and digital mode. The transfer of funds and various eCom results,” says Patel. question has been how to encourage and purchases / payments etc, like discounts, [email protected]

40 Banking Frontiers August 2020 Research Notes - Financial Inclusion Financial inclusion remains a pipe dream

iti GPS, or Global Perspectives As much as 49% of the global growth in financial inclusion. In 2011, and Solutions, is ’s unbanked adults reside in Asia followed half the world’s adult population were Cpremier thought leadership by Africa (25%). The two markets with unbanked. By end 2022, around 15% product, designed to help people trace the largest global population - China and of global adults - roughly 1 billion the global economy’s most demanding India - had 12% and 11% of the global adults - would remain unbanked. challenges and to anticipate future unbanked adults, respectively. The top Between 2011 and 2014, the percent themes and trends. Its latest publication ten markets (based on the presence of of unbanked adult population globally is ‘Banking the Next Billion: Digital unbanked population within the global declined from 49% to 38%. Similarly, Financial Inclusion in Action’. The mix) together comprised 60% of the between 2014 and 2017, the percentage report says despite the existence of global unbanked population pool at the of unbanked adult population globally modern banking for several centuries end of 2017. further declined from 38% to 31%. now, universal access to banking There is a high percentage of adults Building on the historical trends over remains a pipe dream. It highlights reporting insufficient funds to maintain 2011-17 there could be an underlying 10 a Word Bank data for 2017 to reveal the minimum balances required with percentage point additional reducstion that 31% of the world’s adults (or traditional banks as their primary in the percent of unbanked adults over 1.7 billion adults) still do not have reason for not having an account. 2017-22. access to a formal financial institution Apparently, there is unprecedented [email protected] account. Here are the highlights in the report. % of Unbanked Adults Reporting Insufficient Funds as Barrier (Age, 15+) Global unbanked population 70% >65% 65%-35%<35% 60% 50% 40% 30% 20% 10% 0% r il s a a a a a a a a a E ia ia m ru ile co ey ca an nd in az ny ne

Unbanked Adults, 2017 ri ysi xi ssi an od rk st la abi ndi na UA Pe I ge ri anda han a Ch pi Br Egyp t Af la ki <10% <10% to 25% <26% to 50% <50% Ch adesh et Ke an ma Ar l G Ru Tu ip Me Ni mb i Ug S. il Vi Pa Thai Ma ng ndonesi Tanz My Argentin I ud

Source: Citi Research, World Bank Ca Ph Ba Sa In Asia, almost a third of the adult population is unbanked as of 2017. The Source: World Bank, Citi Research situation is somewhat better in the case of Africa and Latin America, where 50% to 60% do not have a bank account. World Unbanked Population Trends

Country Split of Global Unbanked Adults

China 12%

India 11% Others 40%

Pakistan 7%

Indonesia 6% Brazil3% Nigeria5% Egypt 3% Bangladesh 3% Vietnam 3% Mexico 3% Philippines 3% Ethiopia3%

Source: World Bank, CIA, Citi Research Source: World Bank, Citi Research Estimates

Banking Frontiers August 2020 41 Research Notes - Customer Trust Consumers like their data being used to improve CX

recent study has brought out an Consumers who Consumers who 22% interesting revelation about Indian believe their desire for control 34% Aconsumers’ attitude towards data is valuable of their data data and its usage to enhance customer to businesses experience. The study, done by leading 66% 88% credit information bureau Experian, which I see personal value More control brought out the findings as the ‘Experian I don't see any value to me Little or no control

2020 Global Identity & Fraud Report’, Consumers who see GERMANY/ finds that consumers in general understand Global US BRAZIL COLUMBIA UK NETHERLANDSFRANCESPAIN JAPANINDONESIA AUSTRALIAINDIA CHINA value of AUSTRIA the value of information and that 69% of their data Indian consumers like the changes being Yes66% 74%68% 57%63% 62%55% 59%50% 79%85% 59%69% 78% made to the customer experience as a result No 34%26% 32% 43%37% 38%45% 41% 50%21% 15% 41% 31%22% of their data being used. The study also found that the key data. “Some estimates predict an excess of associated with account opening and factors to meaningful online customer 79.5 zettabytes (or 79.5 billion terabytes) of account takeover fraud, in the past 12 engagement are identifying and generated data by 2025, and that number months. recognizing consumers periodically. “While continues to increase with the growth u Over half the businesses are prioritising Indian businesses ranked the highest at of connected devices. This figure largely the creation of targeted products and 100% in being confident in their ability consists of people’s digital exhaust – the data offers. to identify customers, 35% customers felt created from their online activity, behaviours u 66% of consumers understand the unrecognized by businesses. Additionally, and transactions. Part of the promise of ‘big value of their personal information to about 54% of businesses in India currently data’ solutions was to make sense of all this businesses. use advanced analytics (a hybrid of digital information, but a failure to fully u 88% of consumers want more control supervised/unsupervised machine learning realise that aim has turned data lakes into over the use of their data. + business rules) for identity authentication data swamps. Businesses seem to know that u While 95% of businesses globally claim and fraud prevention. More sophisticated advanced tools like AI & ML can enable to have high confidence in their ability authentication strategies and advanced better risk decisions across the customer to identify and re-recognise their fraud detection tools will allow businesses journey, with 86% considering analytics to customers at every interaction, the to accurately identify and continually be a strategic priority and 84% believing lowest confidence is in the Netherlands re-recognise their customers, reducing their it’s their core strength. But businesses are with 82%. exposure to risk and ultimately leading to not alone in recognizing both the growing u Globally, 88% of consumers like the increased trust in such organisations,” a value of personal data and the growing risk changes being made to the customer report on the study said. of fraud - consumers are now aware of these experience as a result of their data being The study revealed that globally, while twin factors too,” says the study. used. Consumers in APAC top the list at 95% of businesses are confident in their The study also finds that businesses 89% and Europe (including UK) follows ability to identify customers digitally, more are beginning to get a handle on regulatory closely behind at 82%. than half of consumers across the globe compliance for privacy and security, so Businesses often talk about creating do not feel recognized when engaging they are shifting their focus to personalized the ultimate digital experience for with businesses online. Over half of the customer experiences. “In fact, over half of customers, but far less about the businesses surveyed are prioritising the the businesses surveyed are prioritising the interrelationship between security, creation of targeted products and offers creation of targeted products and offers, convenience and personalization. “This while collecting more personal information while collecting more personal information has resulted in siloed security measures to do so. Additionally, 84% of businesses to do so. At the same time, most consumers at major decision points in traditional believe if they can better identify customers, seem to be aware of the changes businesses customer lifecycles - when customers sign then they will more easily spot the fraud are making to improve their experiences. up, return and log in, and transact within However, two thirds of them said security is those accounts. It’s a disconnect that’s Data lakes become data swamps still the most important factor when deciding perpetuated through equally isolated Experian’s 2020 Global Identity and to engage a business, followed closely by ease CRM systems that strive to identify Fraud Report says as data’s value grows of access to their accounts,” says the study. customer preferences, but largely fail to so does the risk of fraud. It says consumer achieve this in cohesive, consistent and adoption of digital channels has generated, Highlights of findings appealing ways,” it says. and unfortunately exposed, a great deal of u 57% businesses are seeing higher losses [email protected]

42 Banking Frontiers August 2020 Research Notes - Gold Gold loans demand to go up ovid pandemic and the increased Businesses that are facing a cash crunch or with funds and are taking calibrated steps Crisk aversion in the system have are in need of working capital see this as to grow their secured loan book,” says he led to interest in gold loans. According a good opportunity to make their idle gold The price of gold has increased by around to V. Swaminathan, Joint President, work for them. In addition, the pickup 35% over the last 1 year. Swaminathan Government Business & Gold Loans, in demand is both an urban and a rural explains that this has led to higher ticket Kotak Mahindra Bank, with gold prices phenomenon. We expect a spike in gold size gold loans. In addition, existing gold rising combined with lower interest rates, loans demand in rural India due to good loan customers are opting for top-up loans there is heightened interest in gold loans. kharif crop harvest, normal monsoons and too. “In the prevailing situation, we are “Demand has significantly picked up, both commencement of agricultural activities. seeing strong growth in gold loans and from a personal consumption point of Rural India has also fared better when it expect the increased demand to continue view as well as from business customers. comes to the pandemic. Banks are also flush in the short to medium-term,” he says. India ranks 10th in official gold holdings, with 654.9 tons ith Q2 gold demand down 11% yoy to Gold plays an important part in central followed by Germany (3,363.6 t). Euro Area W1,015.7t, demand for the first half year banks’ reserves management, and they (including European Central Bank-ECB) was 6% weaker at 2,076t. The pandemic are significant holders of gold. This gold lead the table with 10,773.3 tons of gold, as was again the main influence on the gold reserve data – compiled using the IMF’s per the World Gold Council. Central banks’ market in Q2, severely curtailing consumer International Financial Statistics (IFS) – net purchases totalled 39.8t in May, in line demand while providing support for tracks central banks’ reported purchases with net purchases in March and April, and investment. Central banks buying slowed and sales along with gold as a percentage above the monthly average of 35 tons over again in Q2, although the comparison is of their international reserves. the first 4 months of this year. On a ytd basis, with a record Q2 2019. The sector added a India ranks 10th in official gold holdings, IMF data shows that net purchases are now net 233t of gold in H1. Buying has become with 654.9 tons of gold, constituting 7.5% 181 tons, 31% lower than the same period in more concentrated, with fewer banks of total reserves. As a country, United 2019. Six central banks have now decreased adding to reserves so far in 2020. States leads the table, with 8,133.5 tons, their gold reserves, totalling 31.8 tons. Gold-based rapid COVID-19 testing by Oxford University revor Keel, Consultant, World Gold world are developing alternative gold- TCouncil, has in a Goldhub blog titled based technologies. Some have published European gold sales within central bank gold agreements ‘Gold-based Cocid-19 testing – an update‘, promising laboratory data, with clinical Tonnes written that the UK Rapid Test Consortium, data likely to be released in the coming 600 which is a partnership between Oxford weeks. These trials are critical as viral loads CBGA 2 University and leading diagnostics firms, can be low from throat swabs, meaning test 500 has just announced a gold-based rapid test sensitivities in clinical settings can be poor CBGA 1 CBGA 3 CBGA 4 which has shown to be 98.6% accurate in as there is no amplification step involved. 400 clinical trials. Another UK firm, Mologic, Finally, one company has combined has also recently announced promising gold with a brand-new type of diagnostic 300 clinical data of a similar covid rapid test. technology and is currently working Both teams will now bring their respective to develop a viable test. Mammoth technologies to market, focusing on scaling Biosciences uses a technology that is based 200 up manufacture to supply markets around on CRISPR nucleases which search for the world. Importantly, Mologic has also the presence of specific nucleic acids in a 100 established an independent manufacturing sample that are indicative of disease, and facility for its test which is delinked gold nanoparticles are used to generate a 0 from commercial return. This site will simple visual readout on a rapid test strip. manufacture up to 40 million devices per The company has recently announced a 2000 2002 20042006 2008 2010 2012 2014 2016 2018 annum with a target price of $1.25 per unit, partnership with pharmaceutical group CBGA Sales Limit ensuring the technology will be available in GSK to further develop the test, and aim Source: IMF International Financial Statistics, European Central Bank low income settings. to apply to the US FDA for approval before A number of companies around the the end of the year. [email protected]

Banking Frontiers August 2020 43 Country Report - Blockchain Canada becoming the place to be for Blockchain Canada is considered No 3 in the global blockchain hierarchy after Malta and China:

almart Canada, in collaboration to transportation. In addition, the Canadian with DLT Labs, had recently government and several other institutions Wrolled out a freight invoice and are pioneering blockchain research and payment reconciliation solution across mass adoption. Walmart Canada’s 60 transportation Canada’s central bank, the Bank of carriers. The eCom chain believes the Canada, way back in 2017, had teamed solution will increase trust, efficiencies up with Payments Canada, the central and savings between it and its carriers. payments processor, and R3, a distributed Developing the system is in fact an instance database technology company, to conduct of customizing blockchain technology to research called Project Jasper. The project evolve a solution for a complex procedure, focused on how blockchain solutions Vtalik Buterin, who created Ethereum which is somewhat unique to Walmart and can improve the clearing and settlement its supply chain. What the new system does of high-value interbank payments. The giving people an easy way to share their is that it uses distributed ledger technology research initiative consisted of 3 phases. personal information. Developed by a to track deliveries, verify transactions and Phase 1 was conducted on the Ethereum private company of Toronto, SecureKey, the streamline the payment and reconciliation platform and Phase 2 on the custom- solution is an app, Verified.Me, that helps process among Walmart Canada and its designed R3 Corda platform. Among the users verify their identity simply online, in carriers that deliver goods to over 400 findings during the 2 phases of the project person and on the phone using information retail stores across Canada annually. The were possible cost savings through lowering they consent to share from connections, platform integrates and synchronizes all of the costs of reconciliation. such as banks, to access things like health Walmart Canada’s freight supply chain and The phase 3 of the project focused on records and government services, and to logistics data in real time, aggregating the a new collaboration to experiment with an open accounts with banks and telcos. At data between Walmart and its fleet of third- integrated security and payment settlement present, customers of CIBC, Desjardins, party trucks on a shared ledger. platform based on DLT. Royal Bank of Canada, and The innovation is an instance of the TD can add their providers as connections, prowess that Canada possesses in adapting, SOPS FOR DEVELOPERS with BMO and National Bank of Canada customizing and scaling blockchain Startups involved in developing blockchain- to follow soon. Verified.Me is built on top technology to suit specific, non-traditional based solutions are given a variety of tax of IBM blockchain technology and it offers uses. Two countries with the highest interest incentives in Canada and developers are a holistic approach to digital identity that in blockchain technology are Malta, which encouraged to focus heavily on innovation protects the interest of consumers and is known as the ‘Blockchain Island’, and rather than regulation. Similarly, businesses by simplifying the sharing of China, which has the largest number of cryptocurrency and blockchain-centered personal information in a safe way. blockchain companies. Industry experts businesses are fully legalized in the country Yet another instance of how blockchain give the third place to Canada, mainly and there is a number of initiatives that is effectively used in cross border payments is because the technology is used innovatively enhance and support blockchain research. the recent exchange of digital currencies by the and for gainful purposes. One notable blockchain-based product Bank of Canada and the Monetary Authority that came out of Ethereum’s labs is Aion, of Singapore. The 2 central banks have been HOME FOR ETHEREUM which aims to develop an alternative to collaborating on the use of DLT and central Canada is also home for Vitalik Buterin, both the Ethereum and bitcoin blockchains. bank digital currencies to make the cross- who created Ethereum and is one of It fundamentally differs from bitcoin and border payments process cheaper, faster and the most prominent blockchain figures is based on a system of smart contract. It safer The Bank of Canada’s Jasper was linked worldwide. Also, Canada has one of the offers various tools through its systems with Singapore’s Project Ubin network as part frontal organizations doing outstanding which are intended to build the blockchain of the test, done in partnership with Accenture work in the field of blockchain - the networks of tomorrow. and JPMorgan Chase & Co. Toronto-based Blockchain Research It is Canada’s focus on innovation that is Institute, which has evolved into a global FOR VERIFICATION helping it to be a key player in the blockchain think tank promoting various blockchain- Another example of blockchain being sector worldwide. Many see it as the place to based projects throughout the globe. At effectively used is the recent adoption by the be for blockchain., and it will continue to be the moment, the BRI has over a hundred country’s banking industry a blockchain- such in the foreseeable future. research projects underway, from education based digital identity verification network [email protected]

44 Banking Frontiers August 2020 Country Report - Open Banking The Dutch have some hesitation While the Netherlands adopted PSD2 readying for introducing open banking, there appears to be some reservations among the general public:

ost its adopting the PSD2 legislation Through this, banks are moving from in 2019, the Netherlands is now in closed systems to open platforms, with Pthe process of readying for open APIs playing a key role; there are digital banking. The country has a track record portals that give access to a company’s data of being a leader in the whole of Europe and services. As the system matures, it is in adoption of digital banking systems expected that APIs of existing banks will and evolving matured digital payments give third-party companies access to the modalities. This has promoted several payment details of bank clients, provided other European banks to operate from the they give their consent for this, thus paving country - like Spanish digital bank Open the way for adoption of true open banking. Bank and Icelandic Meniga. All these banks Leading Dutch bank ABN Amro is fairly are proponents of open banking and have progressed in developing a system whereby made strides in implementing it in their it intends to change the way banking as a ABN Amro has introduced Gradefix for risk assessments own countries. However, the Netherlands service is offered to customers. It is now in seems to be a slow starter in this realm. the process of applying API techniques for They have also expressed scepticism over The country has been a great promoter clients and identifying API-driven earnings whether the benefits of consumer choice of GDPR, or the General Data Protection models. It has recently launched Gradefix, a and control are worth the risks associated Regulation, of the EU. This apparently had project to make risk assessments based on with opening up so much data. But, going by an adverse effect when the country wanted payment data. Clients and SMEs submit past records, Dutch consumers have proven to introduce PSD2 as Dutch people had the data themselves for analysis and receive to be ready adopters of new technology and become incredibly wary of allowing their a complete summary of their financial are willing to share information if the payoff banks to share some of their data. This has situation. The bank strongly emphasizes is perceived to be worth it. obviously led to the low adoption of open that using the open banking principles, banking in the country. it can make banking easier for clients, ING A LEADER but also for everyone with whom it wants Geographically, ING offers standardized 54 LICENSES to do business. APIs for 16 European countries for current The European Banking Authority says the ING unit Yolt - in fact Yolt Technology accounts as well as card accounts (for AIS). Netherlands has 54 payment institutions Services, or YTS) - has recently said as a ABN Amro offers API services for current having PSD2 licences, not including leading open banking provider in Europe, accounts in the Netherlands, Belgium, firms operating in the country through it now offers an API coverage of over Germany and the United Kingdom. passporting. Of the 54, some 10 have PSD2 90% across the Netherlands. It has API and Volksbank offer APIs for licence for Payment Initiation Services connections with leading banks in the their Dutch accounts. For authentication, (PIS) or Account Information Services Netherlands, including ING, Rabobank, all banks use the OAuth 2.0 Payment (AIS). This is the category where significant ABN Amro, SNS Bank, Regio Bank, ASN Service Users (PSUs) authentication. open banking innovation by many third- Bank, Bunq, and Revolut. YTS, which ING also makes it possible to initiate party providers (TPPs) occurs. makes on average 14 million API calls each domestic transfers within Europe with non- It is expected that in 2020 there could week, offer 3 main services for financial Euro currencies. be more number of fintechs or digital banks institutions and tech businesses across However, the 4 largest Dutch Banks receiving licenses to operate in the country, Europe - an account information service, differ substantially in API standards, which is expected to lead to increased a payment initiation service and data services and flows, geographic scope of integration of fintech propositions with enrichment service. the services as well as the extent of the financial services. It is often said that Dutch banks and information provided on the developer financial services institutions need to websites. TPPs aiming to use the PSD2 API BANK AS A PLATFORM adopt a different approach in adopting services will have to invest substantially One thing specific about the Netherlands open banking, especially when the country’s to adopt all the variations. But this has banking sector is that it has successfully consumers are very much into digital, faster another side - it may stimulate innovation developed ‘bank as a platform’ concept, payments and speedy transactions. There hitherto not seen much in other countries whereby innovative financial services are concerns openly expressed on who which had already adopted open banking. organizations function in partnership. actually are using the shared data and why. [email protected]

Banking Frontiers August 2020 45 Research Notes - Safety of the cloud WFH and security of data on cloud

itherto, WFH, or work from home, was confined to a small percentage Total and External Cloud Threats: January to April 2020 Hof employees working remotely, but 14 the pandemic has turned this upside down. 12 One fallout of WFH is its impact on the use 10 of cloud services. According to data shared 8 by Microsoft, its cloud service has seen a high 775% growth in usage during the time 6 when corporates adopted WFH on a large 4

scale. Internet security services provider 2 Global Threat Count (Normalized)

McAfee carried out an anonymous study 0 of cloud usage by more than 30 million of 246810 12 14 16 Week Number, 2020 All Threats External: Excessive Usage External: Suspicious Superhuman its cloud users worldwide between January from Anomalous Location and April 2020. The study revealed that Cloud threat events across all industries. overall enterprise use of cloud services location and suspicious superhuman - and for targeted attacks, we see Financial spiked by 50% with manufacturing and maintains that both typically involve use of Services experiencing the highest attack financial services companies increasing the stolen credentials. in the case of the former, volume of any industry and also the most most; collaboration services saw an increase it begins with a login and a location that organizations affected.” of up to 600% in usage with education has not been previously detected and is Noting that securing a remote workforce driving this increase, while government anomalous to the user’s organization. The shifts the major security control points to and financial services closely following; and threat actor then initiates high-volume data the device and the cloud, the study says a external attacks on cloud accounts increased access and /or privileged access activity. In cloud-native approach to delivering security 630%, with transportation, government and the case of the latter it is a longin attempt will provide the most complete coverage, manufacturing verticals most affected. from more than one geographically distant capable of reaching devices off-network and The study found that cloud traffic location, impossible to travel to within a connecting to cloud services directly. from unmanaged devices doubled across given period of time. McAfee suggests the following all verticals, which presents an increased Another finding of the study is the fact measures: source of risk stemming from these devices that internal or insider threat categories 1. Implementing a cloud-based secure web accessing cloud services from outside have remained the same, indicating that gateway so that corporate devices can corporate managed networks. There is employees do not go rouge and attempt to be protected against web-based threats no way to recover sensitive data from an steal more data because they are working without routing through VPN. unmanaged device, says the study, so this from home. Most of the attacks seen are 2. Allowing employees to connect to increased access could result in data loss external, cloud-native threats targeting sanctioned cloud services from their events if security teams are not controlling cloud accounts directly. corporate devices without using their cloud access by device type. The study analyzed external cloud VPN, protecting data with a cloud access The McAfee study found that the threats further and found that percentage security broker (CASB). amount of threats from external actors increase of cloud threats by vertical 3. Setting policy in CASB so that cloud targeting cloud services increased 630% during January-April 2020 was highest services have device checks, data with the greatest concentration on in the case of transportation and logistics controls and are protected against collaboration services like Microsoft 365. (1350%), followed by education (1114%), attackers who can access SaaS accounts The study divides the external threats into 2 government,(773%), manufacturing over the internet. categories - excessive usage from anomalous (679%) financial services (571%) and energy 4. Implementing multi-factor and utilities (472%). And the top 10 source authentication for sanctioned cloud Percentage Increase in Enterprise Cloud Service Use: IP geolocations for external attacks on services where applicable to reduce the January to April 2020 cloud accounts are Thailand, USA, China, risk of stolen credentials being used to Manufacturing +144% India, Brazil, Russian Federation, Laos, access accounts.

Education +114% Mexico, New Caledonia and Vietnam. It is a 5. Letting employees use their personal

Real Estate and noticeable fact that none of the countries in devices to access corporate SaaS Construction +63% the top 10 belonged to Europe, which now applications to maintain productivity, Government +45% has very strong data protection regulations. with conditional access to sensitive data Financial Says the report further: “Looking here in the cloud. Services +36% at a view of common source locations [email protected] Increase in cloud service use by vertical. 46 Banking Frontiers August 2020 People Track Shashi Jagdishan will head HDFC Bank Paytm has new CEO for Sashidhar Jagdishan will be the next MD and CEO of HDFC lending biz. Bank. His name has been approved by the RBI from a list of 3 proposed by the bank to succeed the iconic head of the bank Aditya Puri, who will be retiring from the position on 26 October 2020. Jagdishan will have a tenure of 3 years beginning from 27 October. Shyamala Gopinath, chairperson of the bank, said Jagdishan brings to the table a rare combination of IQ and EQ and given his understanding of the business, coupled with a strong people connect, he will take the bank to the next level, she added. Puri in his comments said Jagdishan understands Paytm has appointed Bhavesh the bank’s ethos and culture which have made it what it is, and Gupta as CEO and Senior Vice under his leadership, the best of the bank is yet to come. President to lead the company’s lending business. He will be Partha Pratim Sengupta is MD, responsible for developing and Indian Overseas Bank has named Partha Pratim Sengupta as its new expanding the company’s lending Managing Director and Chief Executive Officer. Sengupta is currently services along with innovating new Deputy Managing director at . His appointment credit products in partnerships with will be up to date of attaining the age of superannuation, that is 31 other banks and NBFCs. He was the December 2022, or until further orders, whichever is earlier. Before founding member and CEO at Clix his elevation as Deputy Managing Director at SBI, he was Chief Capital, formerly GE Capital India, General Manager at the bank’s Kolkata circle. He comes with more for the last 3 years and a half years. than 3 decades of experience in the banking industry, both in retail He has over 22 years of experience and corporate banking, and has served in various capacities in different in the financial sector and has also geographies. worked with IDFC Bank and ICICI N. Sivaraman to head ICRA Bank for more than 10 years. Rating agency ICRA has a new Managing Director and Group CEO. The agency’s board announced it has appointed N Sivaraman to the position JP Morgan elevates and said he will drive ICRA Group’s business strategy and innovation, build 3 as MDs in India organizational capabilities, nurture ICRA’s strong culture of analytical JPMorgan Chase has appointed excellence, strengthen the independence and objectivity of ICRA’s ratings 3 new managing directors for its and enhance the company’s thought leadership. Sivaraman will join India operations, highlighting the ICRA on 10 August. He brings a deep understanding of strategy, business importance the global investment planning, organization building, capital raising, mergers and acquisitions. bank assigns to the country. The 3 are Chief Economist Sajiid Hardayal Prasad is MD & CEO, PNB Housing Finance Chinoy, Head of Debt Capital PNB Housing Finance has appointed Hardayal Prasad, the former SBI Market Madhur Agarwal, and Head Card head who left the card issuer company in July as its MD and CEO. of Wholesale Payments Team The company has an interim MD and CEO now in Neeraj Vyas. Prasad Rajagopal Guhaprasath. Chinoy is will assume the charge on August 10, the company said. Vyas will step a part- time member of the Prime down from the position. A seasoned financial services professional, Minister’s Economic Advisory Hardayal Prasad has experience in retail banking and international Council. Agarwal is known for his operations at SBI and later with SBI Card. He became MD and CEO of role in making JPMorgan retain SBI Card after taking voluntary retirement from SBI. its dominance as the leading debt capital market franchise. James Pearson to head unit Guhaprasath has been instrumental UAE financial services company Mashreq has appointed James Pearson as in driving cash management and the Head of Financial Institutions (FI) & Non-Banking Financial Institutions transaction banking for the bank in (NBFI), a part of the bank’s Corporate and Investment Banking Group India. (CIBG). He has over 30 years of experience in corporate and investment banking and has worked extensively with banks, insurers, investors and intermediaries. He joins Mashreq from Nomura, where he served as Head of Financial Institutions, Asia (ex-Japan). Prior to Nomura, he worked at Standard Chartered Bank in Singapore, where he was the Global Head of Financial Institutions Industry Coverage & Global Head of Insurance Clients.

Banking Frontiers August 2020 47 RNI REG. NO. MAHENG/2002/9930 POSTAL REG. NO. MCN/70/2019-2021 POSTED AT MUMBAI PATRIKA CHANNEL SORTING OFFICE, GPO, MUMBAI ON 16-17 OF EVERY MONTH PUBLISHING DATE 16th OF EVERY MONTH