Vol. 17 No. 5 September 2018 `75 Pages 40

Gramin Bank of Aryavart Bank of India open banking Bahrain’s fund of funds Voice is new digital www.bankingfrontiers.com

Banking on 9 pillars for target half trillion biz Editor’s Blog N. Mohan Mobile : 9322895820 Email : [email protected]

September 2018 - Vol. 17 No. 5 Group Publisher : Babu Nair Making of a ‘cashless society’ Group Editor : Manoj Agrawal weden is set to become a totally cashless society in March 2023 - 24 March 2023 Editor : N. Mohan Sto be precise. Jonas Hedman, who is an associate professor at the department of Editorial digitalization at the Copenhagen Business Mehul Dani, Ravi Lalwani, V. Raghuraman School, who did a study on the prospects of Research Editors the country becoming cashless, says he and Prof Venugopal Iyengar, V. Babu, his team arrived at this precise date after a Ratnakar Deole, W.A. Wijewardena, survey of some 750 retailers and their cash Sanchit Gogia, K.C. Shashidhar, management costs and the decline of cash Dr. L.S. Subramanian, Ajay Kumar in circulation in the country. He explains that when cash transactions fall below 7% of the Advisor-Alliances total payment transactions, it becomes costlier to manage cash than the marginal profit on Ateeq Siddique cash sales. When this happens, an economically rational retail management should stop Marketing accepting cash, says he. He also clarifies that what is meant by cashless society is a society Leena Rawke, Preshit Deshmukh, where cash is not a generally accepted means of payment. There might still be bank notes Kailash Purohit and coins, but you would not be able to use them in a practical sense. One thing interesting about Swedish laws is that contract laws have a higher precedence Events & Operations Gautam Magare, Shirish Joshi, over banking and payment laws. For example, if an establishment puts up a sign that it does Stalin Saldhana, Pramod Jadhav, not accept cash, then the customer who enters the store is entering into a contract or an Amit Gupta, Bharat Solanki, agreement with that store that it does not accept cash. In most of the countries, payment Shweta Kadam, Durgesh Nadkarni, laws are above contract laws. Hedman says this is one of the key reasons why Sweden is Ashish Verma, Wilhelm Singh, more cashless than other countries. Sneha Agrawal Sweden has seen widespread use of payment cards from way back in the 1950s. Bank accounts were digitized starting the 1960s and internet came in the 1990s. The central Design bank also declared that it did not see cash as its core business and outsourced printing Somnath Roy Choudhury and distribution of currencies. A move towards cash free society was also initiated by Published By the ordinary people like bus drivers, cab drivers, bank employees, etc, who came to be Glocal Strategies & Services affected by robberies in the country. During 2015-2017, the country replaced its existing D-312, Twin Arcade, Military Road, Marol, notes and coins with new ones. When this happened, citizens deposited cash into bank Andheri (E), Mumbai 400059, India. accounts but all of it was not taken out. Today, most of the bank branches are cash-free Tel: +91-22-29250166 / 29255569 and it is difficult to find a bank that accepts cash. Only ATM machines - they are rare too - Fax: +91-22-29207563 accept and dispense cash.

Printed & Published by Babu Nair on Sweden’s central bank is also planning to launch a digital currency, which will mean that behalf of Glocal Strategies & Services and people will have to depend less on banks. Printed at Indigo Presss (India) Pvt Ltd., Surprisingly, there is some muted opposition in the country towards cashless society. There Plot No. 1C/716, Off Dadoji Konddeo Cross is what is described as Kontantupproret (cash rebellion), the protagonists of which say Road, Between Sussex and Retiwala Indl. they are concerned about identity theft, rising consumer debt and cyber attacks. More Estate, Byculla (E), Mumbai 400027. surprisingly, the movement is led by a former head of police and retired people are the activists. However, it is seen as a concern of the elderly people, who want to know what Editor: N. Mohan (Responsible for selection could be done in case there is a breakdown of the internet or there is disruption of the of news under PRB Act) electricity supply. As India makes its push towards digital, Sweden is indeed a worthwhile case study.

Banking Frontiers September 2018 3 N E W S Regulator RBI buys 8.46 tonne of gold Saudi Arabia bans The Reserve Bank of India has bought 8.46 tonne of cryptocurrency trading gold in FY 2017-18, the first Saudi Arabia’s financial watchdog, the purchase of the commodity Standing Committee for awareness on by the apex bank in almost dealing in unauthorized securities, has 9 years. The central bank said cryptocurrency trading is illegal in the has been holding 566.23 kingdom. The standing committee said it tonne of gold as on 30 June in a statement it is warning citizens and 2018, compared with 557.77 residents of the kingdom that it is against tonne as on 30 June 2017, the law for citizens and residents of the according to RBI’s latest kingdom to engage in bitcoin trading as annual report for 2017-18. well as trading of digital currencies. It Last time the apex bank pointed to the volatile nature of the digital purchased gold was in November 2009, when it had bought 200 tonne of the yellow assets, security risks and lack of adequate metal from the International Monetary Fund. Of the 566.23 tonne of gold reserves, government regulation as reasons for 292.3 tonne is held as backing for notes the central bankhas issued and is shown as an the ban. asset of the Issue Department, and the balance 273.93 tonne is treated as an asset of the Banking Department. Carney may continue as Bank of England governor Bank of England is expected to have Mark Carney continue as governor and help manage the consequences of Brexit in March 2019. Carney confirmed he had discussed with the government how he could help the country transition out of the European Union and establish itself as a standalone economy. Carney is the first foreigner to serve as Bank of England governor. When he was appointed in 2013, he indicated he Mobile banking would serve until 2018 but later extended that deadline to June 2019. He told a UK overtakes internet parliamentary committee he is recognizing that during this critical period, everyone does everything they can to help with the transition to exiting the European Union banking and he wants to his bit in this exercise as well. Carney, a Harvard-educated economist The Brazilian and former Goldman Sachs banker, was governor of the Bank of Canada before his Central Bank said UK appointment. the mobile channel has surpassed Malaysia liberalizes forex policy internet banking The new governor of Central Bank of Malaysia Nor Shamsiah Mohd Yunus has for the first time initiated action to liberalize the country’s foreign exchange policy and signaled a more in the country. It conciliatory approach to regulating overseas insurance companies. This is seen as a said some 24.5 major shift away from the previous administration’s tough stance on international billion banking financial institutions. These actions are likely to reassure those international investors transactions were who have been impacted by Malaysia’s aggressive pushback against Chinese investment carried out using and those who fear the government will sacrifice market liberalism for more nationalistic smartphones and policies it wants to adopt. Under the new framework, Malaysian exporters will no tablets in 2017, longer be required to convert foreign exchange to the Malaysian currency of ringgit up 46.7% when and back again as part of honoring obligations in international currency. Overseas compared to companies will now be able to trade in ringgit-denominated interest rate derivatives the 16.7 billion while Malaysian residents will have more options to hedge foreign currency exposures. transactions in the prior year. Internet banking transactions, at 20.6 billion, had Pakistan central bank says no plan for new notes a minor increase in relation to 2016, when Reports about possible change in currency notes in Pakistan have been denied by the 20.3 billion transactions via that channel State Bank of Pakistan. There have been reports that country is changing its currency were recorded. Transactions carried out notes. The regulator said there are no plans to change the banknotes in the country. In at the branch dropped to 8.1 billion from a statement, it said the designs and images of proposed currency notes, which have been 8.9 billion in 2016. Increased number circulating on social media, were fake. Social media had carried reports suggesting that of smartphones and provision of 4G are the newly appointed finance minister Asad Umar had decided to discontinue Rs 5000 said to be the contributing factors for the banknotes. The new government was also reported to be keen to change banknotes increased acceptance of mobile banking in worth Rs 50 to Rs 1000. the country.

Banking Frontiers September 2018 5 Project Pipeline Union Bank to undertake business transformation SBI to implement EA Union Bank of India is looking for a management consultant tool, ELAM portal to help it undertake a major State Bank of India is proposing to set business transformation up enterprise architecture (EA) tools project to strengthen its and Enterprise Architecture Lifecycle business by proactive outreach Management (EALM) Portal and has to customers, developing sought proposals from experienced service relationship-banking concept, providers. The required hardware and effective credit delivery the related infrastructure required for the structure and developing implementation of EA tool and the EALM a profit focused business approach to improve profitability. The bank has already portal will be provided by the bank. The implemented similar transformation processes in the past in fields such as in brand selected service provider will implement building, branch model, shift in organizational structure, improving customer service, the EA tool and develop the EALM portal sales productivity at branch level through a series of focused initiatives, improving within a stipulated timeframe. efficiency in business operations, improving turnaround time (TAT) in our key product & services offerings, centralization of credit processing of Retail and MSME, centralization and digitized work flow of rural lending, empowering employees and improving engagement etc. The aim now is to build a ‘next-generation digitally-enabled Universal Bank known for responsive, responsible and inclusive banking through customer centric business models and significant investment in employee development. The bank also wants to bring in information technology enabled structural changes through verticalization of sales, centralization of credit, specialization in recovery Syndicate Bank to and digitization. revamp its website NPCI plans to have IRM solution NPCI is proposing to implement an Information Rights Management (IRM) solution to prevent the loss of confidential data / sensitive data /customer information that could potentially leak out of the its network and to ensure that all the protected data once shared is auditable and trackable. It wants to integrate the IRM solution with its Active Directory system for authentication. The other objectives are to enable its business units to start protecting their sensitive documents. The selected service provider will be required to configure the IRM solution at the primary DC and DR site and fileserver with pre-configured IRM policies. NABARD wants consultant on risk management NABARD is proposing to engage a consultant to help it create an Enterprise- Syndicate Bank is revamping its corporate wide Integrated Risk Management Architecture (EWIRM) in accordance with the website to create a positive user experience. international best practices and guidelines of RBI on Basel I, Basel II and Basel III It wants the website to be simple for site and implement ‘Integrated Risk Management Solution’ (IRMS) with the required visitors to find and share information, infrastructure to support all the business, technical and functional requirements increase engagement levels, create repeat related to enterprise-wide risk management. At present, NABARD is governed by visits, drive application drive downloads BASEL-I regulatory requirements, but it looks forward to meeting the BASEL-III and check eligibility and increase overall norms. The consultant will assist the bank in a smooth migration to the desired future site traffic. The bank wants to exceed goal by ensuring that a comprehensive risk management system is put in place for industry standard metrics such as time identification, assessment, monitoring and reporting of enterprise architecture level spent on site, transactions/ interactions via risks of the organization. the site. etc. The bank is seeking services of agencies having experience in undertaking Allahabad Bank looking for consultant such tasks. The bank wants the new site Allahabad Bank is looking for a consultant to help it to prepare a revised agreement to be user-friendly to the extent that it and other terms and conditions, for the renewal of its CBS agreement, procurement should provide the users what they are and implementation of core/periphery infrastructure refresh. The current contract seeking easily, should provide users access with the CBS systems integrator, Tata Consultancy Services will be expiring in April to key services 24x7 allowing them to share 2019. The exercise will also cover a review of the hardware setup, created in 2006 information and interact with the bank and refreshed in 2012, at the data center and DR site as this is of old generation and virtually, provide a smart, pleasant and going to be declared ‘End of Life’. delightful experience to all users.

6 Banking Frontiers September 2018 Country Report Multi-pronged strategy for fintech promotion Hong Kong is aiming to become a fintech paradise:

ong Kong is working on to become the leading fintech hub in Asia - Hmainly through huge investments. It is estimated that these investments have more than doubled in 2017 to around US$550 million. Compare this with Singapore’s investments in fintech promotion of around US$230 million. What is interesting is Hong Kong aspires to be a connecting link between the giant technology companies of China and the rest of the world. InvestHK, Hong Kong’s investment promotion agency, says the environment is very conducive as the island nation has the necessary laws and financial environment without the usual regulatory Payments and securities settlement. regulations in place, which are just meant to consequence of pilot activities. Plans are Leveraging Hong Kong’s extensive promote fintechs. Among the preferential now afoot to combine the 3 sandboxes settlement platforms, the aim would be to policies Hong Kong has initiated in 2018 thereby creating a single point of entry for secure and expand Hong Kong’s role as a is the creation of a HK$500 million fund cross-sector fintechs. settlement hub for China-international to develop financial services over the next 5 Among the efforts of HKMA is the move payments and securities transactions. years, including in fintechs. to set up a ‘fintech supervisory chat room’ to Digital ID and KYC utility. A fintech Hong Kong, being an established provide direct feedback. It is also planning solution in the form of a sector-wide digital international financial center, is a perfect to launch the Faster Payment System, ID utility to address KYC requirements breeding ground for fintechs. The financial which will support the use of mobile phone would be a priority. services sector contributed 18% of its GDP numbers and email addresses for payments WealthTech and InsurTech - data and employs some 220,000 people or 6% in Hong Kong dollar and Renminbi. analytics, automation and AI. The of the workforce. In 2017, Deloitte ranked intention is not just to enhance Hong Hong Kong 5th among global fintech hubs, 5 KEY FOCUS AREAS Kong’s competitiveness in these areas but behind London, Singapore, New York and HK Financial Services Development to impact more broadly on other aspects, Silicon Valley. Analysts expect fintechs may Council, a high-level government advisory such as insurance and banking, of Hong overhaul many current jobs and business body to support the sustained development Kong’s financial center role. processes derived from complication of of the industry in the autonomous territory, RegTech. Hong Kong’s regulators, process and administration. This will mean has identified 5 areas where fintechs can already respected, can further show their better and cheaper services for financial focus. The aim is to attract investments and leadership by carving out an appropriate services customers. talent in these areas, eventually creating regulatory regime for FinTech, and by world-class firms and technologies in the developing the application of technology to NEW FINTECH SANDBOXES context of an overall fintech strategy. These regulatory compliance. Understanding this importance, the Hong areas are: Kong Monetary Authority, the regulator for Cybersecurity. The Hong Kong HKMA TARGET AREAS the autonomous territory, has created a plan Association of Banks (HKAB) had On the other hand, HKMA has clearly to launch an enhanced fintech supervisory developed a cybersecurity threat sharing identified the following areas for special sandbox. This sandbox and the Securities platform, while HKMA has indicated attention by technology companies: and Futures Commission’s and the Insurance that the platform can be extended to non- • Full connectivity of digital retail Authority’s new sandboxes, are all examples bank financial institutions. Building on payments through the Faster Payment of how Hong Kong is becoming a safe place this, it is proposed that a publicly-funded System for fintechs to test products in a restricted Cybersecurity Center should be established. • Upgrading of the existing Fintech

8 Banking Frontiers September 2018 Supervisory Sandbox 1.0 to Version 2.0 • Facilitating the introduction of virtual Top fintech initiatives in Hong Kong banking in Hong Kong Futu Securities is a brokerage that provides an online stock trading platform • A new ‘Banking Made Easy’ initiative to enabling Chinese individual investors to trade US and Hong Kong-listed stocks. reduce regulatory frictions and improve The company has cumulatively served over 3.4 million customers who have customer experience completed over US$73 billion worth of transactions. • Development of an Open API framework WeLab operates a number of online lending platforms including Wolaidai, one • Stepping up cross-border cooperation in of China’s leading mobile lending platforms, and WeLend, Hong Kong’s online FinTech; and lending platform. • Enhancing research and talent TNG Fintech Group is a mobile payment specialist operating several platforms development. across Asia. Owned by TNG Wallet, one of Hong Kong’s leading e-wallets with Hong Kong has seen a vast increase over 600,000 downloads, the startup facilitates instant money transfer, forex, bank in incubator and accelerator programs - transfer, global bill payment and global SIM top-up functionalities. from 3 in 2010 to over 40 in 2015. There CompareAsiaGroup is a financial comparison platform with a presence in Hong is this Cyberport, which provides dedicated Kong, Indonesia, Malaysia, Philippines, Singapore, Taiwan and Thailand. It a co-working space, while notable innovation comprehensive overview across various financial products, including insurance, labs and accelerators include the Accenture credit cards and personal loans. Innovation Lab, the DBS Vault, and the 8 Securities is a mobile first investing service in Asia with licensed offices in Hong SuperCharger Fintech Accelerator. Kong and Tokyo. It launched Asia’s very first robo-advisor and US$0 commission stock trading apps. It offers the Tradeflix app, which allows users to trade over A NEW PLATFORM 15,000 US, Hong Kong and China stocks with zero commission. The leading fintech ventures and financial Simple Token enables any company to create, launch and manage their own institutions in Hong Kong had formed the branded digital token economy running on the Ethereum mainnet without in-depth Fintech Association of Hong Kong, which blockchain development requirements. Its OST platform is built on top of OpenST acts as a platform for stakeholders to share protocol for consumer-app tokenization and utilizes an Ethereum-based utility token. Quantifeed is a digital wealth management specialist. It provides an automated and connect. According to a spokesperson investment platform that allows banks, brokers and wealth planners to offer their of the FinTech Association of Hong customers a digital investing experience under their own brand. Kong, there are 2 developments that have ANX International specializes in digital currency and blockchain technology made Hong Kong’s burgeoning fintech and aims to be a one-stop solution that merges blockchain technologies with community more attractive to investors. traditional payment networks in the new digital assets ecosystem. He said banks went from being skeptical Lenddo uses non-traditional data to provide credit scoring and verification for the about fintechs, to realizing they can be emerging middle class around the world. It has developed a patented technology beneficial to them. Subsequently, they based on four years of actual online lending experience that included collection, moved from reviewing proofs of concept analysis and processing of billions of data points. to actual implementation and adoption of APrivacy is an award-winning fintech company that provides the banking and fintech solutions, meaning startups now finance industry with an information security and tracking service. The solution have a steadier revenue stream, making allows bankers to communicate and share information with their clients using the them more attractive. The other aspect, devices they prefer. according to the spokesperson, is that the Hong Kong government and regulators and US$714 million for those in Australia. Kong is drawing attention. With more than have a more active agenda to push for 130 startups, 3 accelerators and over 200 innovation across sectors. This is clear from WELAB IS A LEADER events associated with the fintech space, the 2018 budget proposals for the creation Notable among the major successful there are now several innovation labs, of the HK$500 million fund. fintechs in Hong Kong is the online lending co-working spaces, accelerator programs Consultancy firm PwC said in a report platform WeLab. It operates WeLend. It run by both local and multinational that the vast majority (82%) of Hong Kong had raised US$220 million in combined financial and professional services firms are banks and other financial institutions equity and debt financing. Other notable acting as platforms to propel the growth of are looking to enter into some form of players include CompareAsiaGroup, the fintechs. A study by KPMG has noted that partnership with a fintech business in the region’s leading financial comparison 2018 will be the year where fintechs will go next 3 to 5 years. startup, TNG Fintech Group, the operator mainstream in Hong Kong and this trend is According to consultancy firm Accenture, of Hong Kong’s top e-wallet TNG Wallet, likely to drive the industry towards making Hong Kong fintechs have raised US$940 and Quantifeed, a B2B automated a step change in the adoption of fintechs in million since 2010, compared with US$387 investment platform. the next 12 months. million raised by Singapore-based startups No doubt, the fintech scenario in Hong [email protected]

Banking Frontiers September 2018 9 CooperativeCover Story

Banking on 9 pillars for target half trillion biz

SVC Bank is pushing hard to differentiate itself from others in the cooperative banking segment. Ajit E. Venugopalan, MD of the bank, speaks about the differentiation the bank is trying to make:

N. Mohan: What is the growth path that for the customers of this segment, touching How do you propose to make the retail you envisage for SVC Bank for the next the No 1 mark, not only in terms of finances, banking offerings of the bank different to 5 years? How would you propose to but also in terms of brand recall, service attract newer customers? accomplish the targets? What will be the delight and proposition value. For this, we Youth are the key drivers of new major focus areas? have already evolved a time-bound strategy business for us and a pattern study of their Our retail banking is poised for a big and a roadmap for growth, especially for behavior reveals their affinity towards growth curve which in the near future will retail banking, and have already realigned digital banking. Our digital banking play a bigger role in our business mix. We the entire structure to ensure that there is a initiatives, not only in the form of sprucing will target not only the milestone of `500 dedicated focus on each and every initiative up existing touchpoints and making them billion total business, but also retain focus it takes up. more relevant, but also adding more on offering the best work environment and Our retail banking transformation features to all our digital banking mediums employee welfare. strategy is based on few pillars of growth based on the need of the customers and Our retail business is accordingly which are being worked upon, keeping the arriving at the right customization, is the being streamlined in our Vision Path customers at the center. key to ensuring acquisition and stickiness. strengthened with 9 pillars of retail growth We would like to be related to as a This is an important part of our retail where the idea is to align our offerings with bank that is offering exceptional service, an banking roadmap. the market and base our new offerings on exceptional support system having all the There is tough competition in the market, need gaps, eventually leading into making products and services that are there in the especially in product innovation and creation. SVC Bank a Retail Banking Supermarket. market and we intend to make this happen What is the bank doing on this front? in the years to come. We have realized that innovative How do you see the bank evolve and We have hired few experts from the products, new initiatives and new become a preferred banking partner for market along with re-aligning existing staff propositions are the need of the hour. In the retail customers? to have a dedicated and defined focus on this context, we have set up a products and We intend to become a preferred bank our strategy. segments team, constituting people who

10 Banking Frontiers September 2018 are working on all the existing product Segmentation is a core formula that alignments and trying to make the products we use and it plays a very important role best in the market. One of the most in our day to day banking activities. In important pillars among the identified fact, one of the most important pillars is pillars of growth - Product/Policy/Process segmented offerings. Differentiation could Alignment - ensures that a team’s role be in products, features, pricing, policy and covers the entire product management of servicing. So, for an HNI customer, I must the existing products range and derives have a dedicated body or team to meet operational efficiency and features out of his requirements. For a small customer, a the existing products, while simultaneously young customer or a tech savvy customer, working on new product ideas also. So, the main thrust is actually on digital we have arrived at the right split between banking so that the customer can move to the manufacturing or strategy functions this channel and do the transactions online (manufacturer) and the business functions without the help of a banking staff. (seller). The products and segments team is responsible for product development, What are the significant achievements insight research, market alignment and in this area and what are the plans for innovation, while the retail distribution expanding the network? team will be the carriers of this good work, Ajit E. Venugopalan outlines There are opportunities for realigning responsible for incremental business, the significance of the 9 business in some of our key markets. We strategies around developing business, and pillars that the bank has are focusing on tactical relocation of some strategies around expanding channels. of our branches to aid better business designed for retail business outreach, expand our service offerings and What is the strategy in product alignment? growth also to ensure better customer engagement. A novel concept that is part of this strategy is segmenting. The concept has different segments of customers - the In this era of digitization, branches are actually evolved over a period of time - products may not attract attention. becoming rarer. How does the branch that the same product cannot be sold to network expansion fit in this scenario? all the people and unless there is product Is segmentation devised only for products Our strategy is that whatever we do it differentiation - different products for or is it applied in other areas as well? should touch the lives of the people. The number of people who are doing digital banking is still comparatively on a lower side The 9 Pillars of Retail Banking Strategy vis a vis the overall bankable population. In Geographical Expansion: Offsite ATMs (first cooperative bank to get license for brown- my view and in terms of our strategy, the label ATMs), tactical branch expansion and Electronic Banking Centers brick and mortar model will continue for Products: Product alignment with the market to offer modern age banking products some time to accommodate this group. But, and services. yes, digital banking has come to stay and based on the segment to which a customer Segmented Approach: Different products customized for different segments, different pricing for different segments, different experience for different segments of customers belongs to, we will be pushing some of and multiple layers in managing customer relationship. our products. Digital banking will be one such, which also happens to be one of Automation & Re-engineering processes to increase operational efficiency: our strategic pillars. But, the relationship Document Management System, Loan Management System & Loan Originating banking model will continue for some time System and Centralized Clearing. and it will definitely be there for the HNI Going Digital: Automation of processes, improvement in customer experience at customers. different channels / touch points, best systems in payments to help customers. We also have definite plans to launch Customer Service: SVC Care 24x7 customer care center focusing on service requests a digital only bank. This is a thought on and customer engagement right from the start of the relationship. which we have actually started working Channel Expansion: Expanding channels to facilitate smooth functioning and to generate upon. We are evaluating some of the business opportunities partners in terms of supporting us in all the Controls & Governance: Increased emphasis on systems, processes and compliances. technological requirements. Our strategy People Participative Approach: Aim is at inclusive growth meaning all levels of staff would be having a core banking solution will be provided with training and building everything in an openAPI architecture. We will develop on the

Banking Frontiers September 2018 11 Cooperative

existing expertise. Some work has already commenced in this direction. In the next few months we will have the entire concept ready for consideration. It will be a parallel digital banking system that will evolve.

The new strategy seems to lay a lot of emphasis on wealth management. We have been into third party business for a considerable period of time. However, under the new strategy, the bank wants to be SVC Bank’s Digital Hexa different. We have engaged an experienced hand, who has been there in the wealth and have all the strategies - whether it is This will be one of the priority areas for us. management domain for a long time and he a product strategy or service strategy or a There is a core digital team involved also in and his team has drawn an entire strategy digital strategy - then all the strategies are creating the required infrastructure and in under which it will no more be third-party comparatively similar. The only difference is launching the upgraded services. This team products but holistic wealth management in the actual nature of execution - whether is driving the digital agenda of the bank - offerings and services. We will be having a it is as per the customers’ needs or their that of creating a parallel digital banking very balanced approach towards customers’ demands or not. It is a question of whether strategy and implementing systems like wallets, whether it is insurance or MFs or I am providing an exceptional customer loan origination system and the DMS depository/3-in-1 account. As I mentioned service or not in terms of the after sales service and introducing newer capabilities in earlier, we will be pushing the pedal on or in terms of automation of processes, so the internet banking and mobile banking wealth management as a strategy. This that the customer also feels that there is a domain. The roadmap is ready, and we is not for incremental business only but wow factor attached to the relationship. The expect to have some of the best products in for safeguarding CASA and increasing customer will say wow when I can get a loan the market in the months to come. stickiness too. sanctioned in say half a day or an account opened in say 30 seconds. This wow factor How would you define the strategic While evolving the strategy, has the bank is essential. The entire strategy should be exercise that is now in progress? at any point of time felt that its cooperative revolving around creating a high customer The strategic exercise I mentioned is bank tag had been disadvantageous? experience and customer delight – which not to change the organization but to ensure I must say that in terms of differentiation brings us to our next pillar that looks at that all the best practices are in place so that of products and services, there is hardly superior customer experience. we can become even more a competitive any difference between a commercial bank The bank, therefore, has the strategy setup. What we are trying to do is to have and a cooperative bank. I do not see much revolved around automation of processes. the best of the products and segregation difference here, because I have been able We believe this really helps in increasing between the roses and the lotuses, and to provide the same level of service to our operational efficiency. We are automating a sound governance system keeping the customers which private sector banks the entire account opening process and loan customer at the center while designing the are offering. There are definitely a few sanctioning process without any physical strategies relating to products, or services limits on product offerings which have an movement of forms. or digital agenda, which happens to be the implication on the spread of products and last but one of the most critical pillars - the reach. But, the segment class we cater to With so much going on in the pipeline, how controls & governance. has a unique requirement which we derive efficient would you consider your IT infra I can see an inherent strong culture from the market. Our personalized banking to be? in the organization. A culture that binds service advantage has been effective enough SVC Bank is one of the very few people together as a force. Both customers in deepening relationships. Loyal customers cooperative banks in the country to have a and employees enjoy what brand SVC Bank who get a definite service guarantee look very strong IT team. This team - now more offers and their loyalty spanning many up to us for all their financial requirements than 150 members strong - has developed years of relationship says it all. thereby enabling us to supersede any an in-house CBS, which is also being used My intention is to build on these disadvantage arising due to the limitations by 80+ other cooperative banks. The bank strengths using the best of things available being spoken about. has the required expertise and is now in in the market and apply customization, so the process of upgrading the solutions. that it meets the specific requirements How has the new strategy influenced the It is also developing an infrastructure for of the organization as well as of handling of competition? internet banking and mobile banking our customers. If you keep the customer at the center functions to be on par with the industry. [email protected]

12 Banking Frontiers September 2018 Finance for fintechs A fund of funds in Bahrain to promote fintechs Bahrain Economic Development Board is the apex institution in Bahrain that promotes tech-driven enterprises in the kingdom. Its executive director - Financial Services, David Parker outlines the Board’s focus:

N. Mohan: Bahrain Economic Development its enterprises, while the kingdom also ranks Board had a landmark event recently with first in MENA for ICT readiness according the closure of the $100 million Al Waha to the World Economic Forum (WEF). The Fund of Funds promoted by Bahrain Board plays an important role in connecting Development Bank. How would you be established and prospective startups with making use of this fund? institutions such as accelerators, incubators, David Parker: The Al Waha Fund of venture capitalists and relevant government Funds will invest in venture capital funds agencies. Our platform, Startup Bahrain, that have a presence in Bahrain, helping is driven by the startup community and innovative and technology-driven startups provides an important focal point around in the kingdom and across the Middle East which the ecosystem can grow. We also by increasing access to funding, as well as played a crucial part in encouraging the attracting new funds and expertise to the implementation of the kingdom’s Cloud First country. Although the Fund will be used to policy, and in attracting AWS to set up their support a diverse range of startups across regional operations in Bahrain. This came several sectors, we are especially excited as the Kingdom passed a new law reducing about the potential contributions of the minimum capital requirements in most technology sector to the kingdom’s economy, sectors, as well as several other business- particularly from fintech. According to a David Parker believes that friendly regulations, furthering Bahrain’s recent McKinsey report, Bahrain leads the position as the most cost-efficient economy Middle East in digital contribution to GDP Indian startup community has in the region and creating a more conducive at 8% - nearly twice the regional average show great promise and has a environment for startups to flourish. and ahead of the European average. This is lot to offer the kingdom expected to be boosted by the introduction What would be the common platform for of the first Amazon Web Services (AWS) the Al Waha Fund of Funds, the fintechs Region in the Middle East to Bahrain, Bahrain. It provides innovative technical in the country, the FinTech Bay and the which among its many benefits is estimated and service solutions with an emphasis regulatory sandbox for fintechs? to reduce 5-year costs of operation by 51% on card and mobile payment processing, These initiatives are unified by a . Additionally, cloud uptake in Bahrain is outsourced programme management vision to develop an ecosystem in Bahrain projected to grow at a CAGR of 49.7% by services, and payments consulting. that is conducive to technology-focused 2020, and AWS estimates that 10,000 data We are hoping to see similar results entrepreneurship and startups more broadly, solution architects will be needed across the in the next few years with other startups, making the private sector a key driver of region in the next 5 years. Within the first facilitated by the opportunities offered by economic growth in the process. Innovation few months of announcing their launch in the Fund of Funds and the implementation in particular is a central theme of these Bahrain, over 2300 young Bahrainis signed of several business-friendly initiatives. initiatives. The CBB would be the common up for AWS Educate programs, a sign-up platform for the ones you mentioned. rate exceeding both China and India. How would the Bahrain Economic However, Bahrain’s startup ecosystem is One of Bahrain’s success stories in Development Board propose to be more of a community initiative. Therefore fintech is NEC Payments, which was a catalyst in the growth of startups, you will have startups use the sandbox to formed in December 2014 and is licensed especially fintechs? test their ideas in a controlled and supported and regulated by the Central Bank of Bahrain has one of the most engaging and environment, the Fund of Funds will provide Bahrain as an Ancillary Services Provider exciting startup cultures in the region, with financial assistance, the accelerators and (Card Processing). The Company was the most liberalized and competitive ICT incubators will help them grow, and finally formed with the objective of supporting the sector in the Middle-East. SMEs account for the regulatory climate will continue to benefit growth of the financial services industry in 30% of Bahrain’s GDP, and comprise 90% of from key regulatory reforms.

14 Banking Frontiers September 2018 What is the nature of the mechanism you have in place to decide on the funding of eligible enterprises? The strategic direction of the allocation is being directed by the Limited Partners Advisory Committee (LPAC), which reflects our national Team Bahrain approach. It consists of several major public and private sector entities such as Tamkeen, the national labour fund, which provides training and assistance to private sector businesses and individuals, the kingdom’s Bahrain FinTech Bay, one of the initiatives in Bahrain to support startups sovereign wealth fund (Mumtalakat), the National Bank of Bahrain, the Bahrain Indian entrepreneur Amjad Puliyali, who change. Examples of recently-introduced Telecommunications Company (Batelco), had previously worked for Bengaluru- business-friendly regulations include new and the Bahrain Development Bank. based growth marketing platform Vizury, Bankruptcy, Competition, Data Protection, The venture capital firms that receive an helping set up the Middle East operations Investment Limited Partnership (ILP), and allocation of the Fund will be free to invest based in Dubai. He moved to Bahrain to set Trust Laws. how they see fit. up his own business because of the lower operational costs – which are 30% and 40% What are the other avenues of funding Which are the major enterprises that would lower than Qatar and Dubai respectively that are available in Bahrain for startups, receive funding immediately? – along with its increasingly supportive especially technology startups? In June, the LPAC met for the first regulatory environment. Bahrain is home to a number of time to close the $100 million. During We have a number of other Indian startups accelerators and incubators designed to the meeting $35 million of the Fund was in the process of setting up in the Kingdom, foster innovation and support startups by allocated to several venture capital firms. and we are looking forward to announcing helping them gain access to funding and The focus of the allocated funds will be on their establishment soon. We hope this expertise. The role of the Bahrain Economic innovative and technology driven startups. progress marks the start of a blossoming and Development Board is to work with productive entrepreneurial relationship with government agencies such as Tamkeen and Is there a prospect of any non-Bahraini the Indian startup community. the Bahrain Development Bank, as well as enterprises receiving the funding from current and prospective investors, to support the Fund? Venture capital investment in the Middle initiatives that enhance the economic Yes - funding is not restricted to East countries is still in its primacy. What climate in the Kingdom. StartUp Bahrain Bahrain, while the funds need to have a are the challenges you see in the growth is a community initiative supported by presence in Bahrain, they are not restricted of this funding medium? the EDB, comprising startups, corporates, to investing only in Bahrain. Therefore, The startup industry is defined by the investors, accelerators, incubators, startups based across the Middle East can extreme risk factor involved, and naturally educational institutions and the Bahraini gain access to the capital they need in order these risks will sometimes result in failure. government to promote startup culture in to expand. As the region’s longest established financial Bahrain. Of the many accelerators in the services center, Bahrain benefits both from kingdom, Bahrain Fintech Bay, launched Is India, which has lot of fintech activities, an experienced single regulator in the in February 2018, is a leading example, one of the countries that the fund would Central Bank of Bahrain and streamlined and is the largest dedicated fintech hub be focusing? on-shore regulations. Robust legal- in the MENA region, facilitating direct The Indian startup community has frameworks, including world-class trust collaboration with the central bank’s demonstrated immense potential over laws, are already in place to enable venture fintech Unit. Other accelerators include the years and we believe it has a lot to capital and other investment funds to Fablab, Tenmou, Nest, C5, CH9, Brinc, and offer the kingdom, which is why we have operate effectively and support innovative most recently, Flat6Labs. heightened our efforts to attract the best startups while minimizing risk. On the cost-side, Bahrain offers some and the brightest from what the Indian Recognizing this, the Bahraini of the region’s lowest operating costs. In market has to offer. Our greatest success government has undertaken a series of 2015 Bahrain reduced the minimum capital story so far in this regard is GetBaqala, a initiatives over the past few years to create required for starting a business, and the mobile grocery purchasing and delivery a more pro-business environment and Kingdom currently offers operating costs application, and one of Bahrain’s most provide a strong, dynamic regulatory system at least 30% lower than in Dubai. flourishing startups. It was founded by that supports innovation and is adaptive to [email protected]

Banking Frontiers September 2018 15 Tech Initiatives OCRM improves customer experience, reduces TAT @ BoI Bank of India is working on more and more online product delivery with an objective of achieving open banking:

ank of India has aligned its digital feedback. Meena says OCRM services give strategy for improving customer the bank an opportunity to interact with its Bexperience and process automation. existing and prospective customers and to The strategy focuses on action necessary to sell and cross sell its products and offerings. build a responsive, efficient and delivery Other services like facility to claim focused IT. Development, enhancement bill refund though online request, ATM and monitoring plays a crucial role in failure refund online, POS failure refund it. S.R. Meena, GM & CIO, Information online, pre-paid card balance enquiry, Technology Department, outlines the key instant generation of debit card PIN by initiatives of the bank: “We have undertaken visiting the bank’s ATM have also been and implemented projects like UPI both as provided and Meena feels these services an issuer and acquirer, Bharat Bill Payment have considerably improved the customer System (BBPS) and launched the first phase experience and has reduced TAT. of our new mobile banking application. We are a member of BankChain group for SOCIAL MEDIA PRESENCE blockchain technology. There are on-going The bank is now aiming to leverage the same enhancements in our existing products for enhancing its customer experience, and services also. We are focusing on service delivery and customer participation. monitoring and controlling, and we work in SR Meena reveals that Bank It is present on Facebook and Twitter close coordination with risk management of India is pushing digital and this plays important role in engaging department.” initiatives and increasing the with the customers across the globe. “Our The bank has identified the core building presence on social media is helpful in blocks in this effort and the focus is now expenditure by 25% getting feedback from the customers and firmly on closing the saying-doing gap. Now providing them instant response as well more than ever, the bank relies on the digital as necessary customer education. These strategy to provide services and to maximize ANALYTICS JOURNEY BEGINS platforms are also helpful in educating new the values. “Our digital strategy is based on The bank leverages Business Objects for its users. We are pushing on digital initiatives our past experiences and involves active MIS reporting. It already has a large volume and increasing the expenditure by 25%,” consultation with the business,” says Meena. of transactional data with it and it realizes says Meena. the benefit of analytics for better customer TOWARDS OPEN BANKING service, operations and reporting. “We are APP INTEGRATING SERVICES Technology is no more an ‘enabler’ in this keen on leveraging advanced analytics, big In a span of a year and half, the bank has digital scenario; it is an ‘inevitable’ tool data and social analytical tools using the launched 3 mobile apps. It has its UPI and technique at the disposal of banks, latest technology and we have just begun acquirer application BOI BHIM UPI, which gives them an opportunity to the journey,” says Meena. BBPS application BOI Bill Pay and a new achieve their vision to become the bank mobile banking app BoI Mobile. These of choice. The customer values simplicity CROSS SELLING OFFERINGS applications are for retail customers. For and security as the important parameters Technology has digitized business the corporate segment, there is ‘Star Token in their acceptance of the bank’s solutions. processes and operations of the bank NG’, which offers quick banking and is also Says Meena: “Digitization helps us in with improvement in productivity and a 2FA solution. curbing frauds, minimizing transaction operational efficiency. It has Operational Meena says that going forward, the bank failure, more online presence and, most Customer Relationship Management would integrate these services in mobile importantly, build trust in our customers. (OCRM) services integrated with its banking app, which would be one stop for all We are working on more and more online corporate website, which provides its banking needs. “To provide competitive edge product delivery with an objective of customer facility of grievance redressal and to implement projects for achieving achieving open banking.” as well as a digital channel to provide excellence in customer service, the business

18 Banking Frontiers September 2018 analysis is done by our staff member having expertise in particular technology/business BoI 1st in SHG credit linkage domain and the implementation is done aving access to basic banking services reduces the economic vulnerability of households, by the service provider. Monitoring and Hpromotes economic growth, alleviates poverty and improves the quality of life. Bank of controlling of the project is also done by our India has introduced different business modes to cater to the banking needs of people in areas in-house staff,” says he. which have now been covered under banking. According to S.R. Meena, GM and CIO of the bank, the bank has provided a bucket of services using business correspondents as part of its STORAGE VIRTUALIZED digital strategy. These include eKYC enabled account opening, online AEPS, online remittances and online enrolment of various government schemes. This has helped the bank in achieving its The bank’s data centre integrates all financial inclusion goals and generated good business, he adds. The bank has been awarded first channels (ATM, internet, telephone prize by the government of Maharashtra among all PSU banks for SHG credit linkage in the state. banking and branches), systems (over 16 source systems) and data, and this provides has helped us in achieving the objective of and recruitments are done for filling up the bank numerous benefits. Less time is reduced data center cost, improved time vacancies at various scales. IT officers are required for aggregating, reporting and to market for new workloads, deployment posted at zones to provide required support analyzing data. It has led to reduction of IT of highly scalable infrastructure and to the zones and branches. staff, and their redeployment as operational improvement in IT administration and All the training centres organize regular managers in the branches. infrastructure management.” workshop on IT infrastructure, IT products, The bank has a well-defined process their usage and advantages. Staff members for capacity management for technology IT STAFF & TRAINING are also nominated in IT related training infrastructure. It has standardized The bank has an 100+ strong IT Team organized by institutes like IDRBT, NIBM its virtualization platform for storage at its data center. Specialist officers etc. Online knowledge tests on IT related infrastructure and has augmented compute with relevant academic qualifications products and services are organized time to and storage capacity for running business are recruited. Moreover, operations time “We also have 110+ eLearning modules critical applications like SQL database, departments monitor and manage the day- made available in our HRMS on various Oracle database, Exchange server, UPI, to-day operation in coordination with 55 aspects of banking, including IT for the BBPS and new mobile banking app. zones and various branches. Meena says benefit of all the staff members,” says Meena. Explains Meena: “Storage virtualization the bank is adequately staffed and skilled [email protected]

Trust is major driver Unique way to get talent Blockchain unlocked

Nilesh Shah Prashant Kumar Prasanna Lohar MD, Kotak Mutual Fund Dy MD, SBI Head-Innovation, DCB Bank

Summary: Trust is the major driver Summary: Since State Bank of India Summary: A better insight into for investors. Today, Kotak AMC is barred from campus placements, blockchain, which is today an has reached half the balance sheet of it found a unique way of marketing indisputable and most spectacular Kotak Mahindra Bank. themselves in 500 digital invention in colleges to grab students’ the world. Can it attention. They are really turn around hiring 80% talent with an organization? specialized skills.

Banking Frontiers September 2018 19 Regional Rural Banks Gramin Bank of Aryavart to add more branches, BCs Will lean towards technology and trading for growth:

he Gramin Bank of Aryavart came maximum credit to agriculture and MSME into being on 1 April 2013 after sectors for income generating opportunities Tthe amalgamation of 2 RRBs - of rural households. As on March 2018, its Aryavart Kshetriya Gramin Bank and agricultural advance was of `94.5 billion Shreyas Gramin Bank. The former was and MSME sector advances `8.5 billion. sponsored by Bank of India while the latter During FY 2017-18, advances to the MSME was sponsored by Canara Bank. Post- sector achieved maximum growth of 27.52% amalgamation, Gramin Bank of Aryavart followed by non-priority sector at 25.49%. has its head office at Lucknow under the The bank has also achieved 101.68% of its sponsorship of Bank of India. target under Pradhan Mantri Mudra Yojna (PMMY) for FY 2017-18. NETWORK Singh speaks about growth: “Our Today, the bank operates in 15 districts in deposits have increased to the tune of UP - Lucknow, Barabanki, Farrukhabad, `143.90 billion as of Q1, 2018-19 from Hardoi, Kannauj, Unnao, Faizabad, `139.84 billion 3 months ago. As of Mainpuri, Firozabad, Aligarh, Etah, Hathras, March 2019, the deposit budget is `161.17 KashiRam Nagar, Mathura and Agra. It has billion. Similarly, in Q1 of FY 2018-19, our a network of 706 branches and 12 regional advance outstanding was `113.81 billion offices. It is using shared ATMs of various SB Singh outlines how the as against `113.59 billion as on 31 March banks for serving its customers. According bank plans to achieve gross 2018. The loan budget for March 2019 is to S.B. Singh, chairman of the bank, the `130.63 billion.” bank plans to increase the branch network NPAs below 5% and net NPAs The main focus of the bank during FY to 720 by March 2019. “Added to that, we below 2% in the current FY 2018-19 has been increasing agricultural have 1856 BCs equipped with micro-ATMs. term loan advances and MSME sector We propose to provide 650 microt-ATMs at personal contact, relationship banking, advances. The intention is to provide cash counters of all our rural branches by special attention to good customers viz maximum capital support through credit 30 September 2018,” adds Singh. senior citizens, teachers and other salaried extension to the rural households for class drawing salary from its branches. It increasing their income within the purview EXPANDING CUSTOMER BASE extends need-based services/products and of national agenda of ‘Doubling of Farmers’ The bank has a customer base of 12.13 million credit facilities to its customers to increase income by 2022’. as on 30 June 2018 against 12.09 million their income and sustainable growth. The bank has also launched Aryavart just 3 months ago. The bank always gives a Says Singh: “We organize literacy camps Star Mission since 2 October 2017, for thrust on better customer connect through through our financial literacy counsellors identifying 125,000 families through its and spread awareness through our mobile branch network in 15 districts and intend vans ‘Aryavart Vikas Ruth’ in rural areas. to cover the entire command area by 2020 We expect the customer base to increase to for the purpose of doubling of income of 12.5 million by March 2019.” rural households. Singh elaborates on this The bank has also covered all its strategy: “By now, we have identified all borrowers under ‘Aryavart Free Accidental families and they have been credit linked cum Disability Insurance scheme’ by for minimum one activity, which will providing a cover of `200,000 against be extended to second, third and fourth accidental death or permanent disability activities as per the needs of the borrowers. due to accident. This insurance is absolutely The core of the mission is to finance multiple free for all borrowers. activities, mainly for providing gainful employment to all the adult members of BUSINESS UP FOR FARMERS the families for 200 to 250 days per year, Aryavart Vikas Ruth During FY 2017-18, the bank extended to facilitate debt swap to reduce high cost of

20 Banking Frontiers September 2018 formal/informal borrowings and to provide coverage under social security schemes such as PMSBY, PMJJY & health insurance etc.”

TECHNOLOGY PLANS All the 706 branches and regional offices of the bank are on CBS platform. All the branches offer RTGS/NEFT facility. The immediate plans include enhancing fraud prevention measures using biometric authentication (for staff as well as customers) to avail eKYC in collaboration with UIDAI. “The idea is to make customers feel secure while using our facilities and Launch of Aryavart Free Accidental Insurance preventing frauds by impersonation. We are also planning to introduce facilities like Our eKYC processes are managed by by masses and to boost recovery in NPA mobile banking, IMPS and ME-POS, etc, Miscot and CKYC by Adroit. The biometric accounts. Special attention is paid on during FY 2018-19 to enable our customers authentication process is supported by recoveries in NPA accounts of those with take up for digital transactions,” says Singh. IDEMIA. FI is supported by TCS and the balance of `1 million and above. Customers The rural customers of the bank are entire network is supported by HP and of high NPA branches are personally availing banking services at their door steps DSM for branch and link maintenances. contacted by dedicated staff at the regional through micro-ATMs at BC points and FIS Global manages our ATM facility, offices to ensure timely recovery. Emphasis mobile vans. Singh says these customers while ACL Technologies looks after SMS is also given on cash recoveries for KCC are highly satisfied with the IT-enabled banking service.” rollovers. The bank will be maintaining services of the bank. asset quality by monitoring early warning DRASTIC NPA REDUCTION signals and initiating corrective measures. MAIN IT VENDORS The bank’s gross and net NPA have come Says Singh: “Our target for March 2019 The bank has partnerships with a number down significantly to 9.91% and 4.21% is to achieve gross NPA of below 5% and of IT companies. Says Singh: “We have respectively as 31 March 2018 from net NPA of below 2%. The major NPA Finacle (version 7.0.18) for our CBS 16.11% and 10.66% respectively a year ago. strategies include contacting customers platform. We get technology support from Provision coverage ratio was 60.03%. The with high NPA, OTS, use of Lok Adalats, EIT-DXC Technology and we now intend bank has been regularly organizing camps filing RCs and coordination with revenue to upgrade this version to a higher one. to spread product awareness among rural authorities for early action as well as filing suits and action under SARFAESI Act Business Growth Strategy 2002 for all eligible accounts.” ramin Bank of Aryavart has conceived plans for deposit and CASA EXPANSION & HR PLANS Gmobilization, specifically by targeting the rural and semi-urban population. It is The bank has increased its staff strength also intending to link farmers’ accounts with farm produce procurement and focus from 3260 as on 31 March 2017 to 3956 as on retail customers for current accounts. One focus area is to provide technology- on 30 June 2018 to meet increased business enabled services to its customers. Another focus area is financial inclusion and this requirements. Implementation of biometric will be achieved through business correspondents/business facilitators... login authentication is under process and Says S.B. Singh, chairman of the bank: “We will be focusing on our 20% of core this will be fully functional during this year. customers, so as not to lose our deposit base. We will introduce special savings The bank has a staff welfare fund to take up deposit accounts bundled with free ATM card, with added benefits like insurance based on customer segmentation, which will be provided as welcome kit.” various welfare activities. For borrowings, the bank will be enhancing resource base and optimizing The bank is proposing to add 14 new borrowing / refinance facilities for cost reduction. Yield on investment should be branches this year. It is also planning to optimized. The bank will be more active towards trading to generate income other make HRMS live for all staff members than interest. during the year. There is adequate provision “For augmenting credit, we will be creating life cycle products for target in the budget for in-house training segments, diversifying asset portfolio and increasing investment credit. There programs as well as for those organized at will be increased coverage through Self Help Groups (SHGs), Joint Liability Groups national centres such as BIRD, NIBM and (JLGs) and more agricultural term loans,” says Singh. PNB-IIT for skill development of the staff. [email protected]

Banking Frontiers September 2018 21 Insurance Voice is the new digital at Bajaj Allianz Bajaj Allianz General Insurance launches chatbots for customers, employees as well as job seekers

ajaj Allianz General Insurance monitoring the movement of students.” began the current financial year The company tries to align its product Bwith a strong growth and plans to strategy to address the needs of customers maintain the momentum. It has registered in terms of new-age risks. Says Singhel: a growth of 23.1% with a GWP of `24.29 “We were the first in the Indian insurance billion in Q1 FY2018-19. It grew 23.7% in industry to come up with a retail cyber 2017-18 while the industry grew at about insurance cover, the first to bring agreed 16.9% on GDPI basis. Its net profit grew value (ie the loss will be settled by the 27% yoy to `9.21 billion and underwriting insurer on the value of the property or profit soared by 359% yoy to `2.93 billion content agreed by the policyholder at the in FY2017-18. time of purchasing policy) and ‘new for Tapan Singhel, MD & CEO, of Bajaj old’ in home insurance (ie when an item Allianz General Insurance says this growth is damaged beyond repair, the insurer will has been possible because of the agile pay out for the replacement for the same approach and attitude of not flustering in full). We were also the first to launch when there are ups and downs. “We faced a global personal accident insurance that the challenges head on. We believe in covers adventure sports.” understanding the worries of our customers and solving their problems by designing our Tapan Singhel mentions Bajaj MARKETING, ONLINE APPEAL products and services according to their Allainz General Insurance has The company leverages both the expectations. We continue to innovate and 238 banca tie-ups and it aims conventional ways of marketing as well the engage with our customers regularly, not for 100% policy issuance in the new age tools to cater to all the segments of only at the time of claims but throughout bank branch itself customers across all geographies. It regularly their policy period. This approach has led conducts region specific roadshows in tier 2 us towards sustainable growth and to be a approach. Singhel gives an example: “We and 3 towns. For instance, it holds health market leader in the industry,” says he. launched ‘Smart Schools’ initiative when insurance awareness campaigns for its The insurance industry in India is 100 one of the biggest worries we saw in recent customers and campaigns targeting farmers years old and the products are more or less times was children’s safety - especially educating them on Pradhan Mantri Fasal the same. Risks are changing rapidly, and when travelling to and from school. We Bima Yojna. Singhel feels: “Such campaigns Bajaj Allianz General Insurance has been a came up with the solution of group personal help us reach the grassroots and provide market leader and has stayed ahead of the accident cover for school kids. It uses IoT services to the untapped and highly potential curve to offer insurance solutions beyond the and helps parents to track the whereabouts market,” says Singhel. expectations of its customers. The company of their children the moment they step into In the online space, current events has always adopted a customer centric the school bus. It also helps the school in and topical trends are incorporated into the campaign themes of the company to make its ads more relevant and engaging. Bancassurance success Explains Singhel: “We follow a content ajaj Allianz General Insurance is a pioneer in the bancassurance space. To provide better driven approach on online media as Bservices, it has initiated few practices with the banks. It has started using analytics to customers today prefer doing research understand the customer better to offer them need based and lifestyle-based products. Tapan and comparing the products online. Our Singhel, MD, says: “We have around 238 banca tie-ups. We have initiated a partner integration approach is to explain the nuances of team, combo products, automation, policy issuance on tab, straight pass through approvals, insurance in a simplified manner that etc. We are focusing on one-click solutions with sachet products for our customers. Our aim connects with the audience and this helps us is to have 100% policy issuance in the bank branch itself. Though banks have a multi partner drive quality traffic on the website, such as arrangement, our customised strategy for each bank has helped us grow exponentially and the ‘Demystifying Insurance’ section on our become their preferred partners.” website.’ Social media also plays a vital role

22 Banking Frontiers September 2018 in engaging with the customers and reaching out to the new ones.” Bajaj Allianz General Insurance is also expanding its reach by crafting its communication in different languages. This is done to capture a larger group of people in emerging tier 2 and 3 markets, which has seen a rise in internet penetration lately and continues to grow. “As insurers, we will continue to enhance engagement with our Pradhan Mantri Fasal Bima Yojana awareness campaign in Chattisgarh consumers,” says Singhel. branch. To enhance our customer service this number through 3 mechanisms. The levels, we also introduced AI enabled largest mechanism is crop insurance DIGITIZATION UP chatbot ‘BOING’ which addresses customer through government schemes, wherein The company has been using IoT, AI, ML, queries 24/7. This chatbot is also available the company issued around 300,000 crop etc in its value chain as it believes that this on Alexa (Amazon Echo only) and Google insurance policies last year. The plan is to is how things will be defined in the future. It Assistant as we believe that ‘voice’ will make increase penetration of insurance products has introduced an HR chatbot ‘Buddy’ that the customer interaction even simpler and in rural areas through Common Service addresses HR related queries of its employees. will take their experience to the next level.” Centres (CSC). This channel will soon It is also the first in the insurance industry Although online channel is still at a become one of the biggest channels in to have Virtual Employee ‘Eve’, which very nascent stage in India, the company rural areas and the company is appointing represents company’s automated Talent has seen a gradual increase in policies that separate staff to handle the channel. Acquisition Portal - Tal.Port - that conducts are purchased online. Singhel says 3% of Besides, it has a number of banca tie-ups, robotic video interviews for job seekers. the total policies sold by the company are which has helped it reach out to customers “We have been the first in the Indian through the online channel. The consistent in these areas through their network. insurance industry to use blockchain focus on digitization of processes for an The company is looking at actively where, without the customer intimating enhanced customer experience and better participating in the National Health their overseas flight delay claim, we expense management has been instrumental Protection Mission scheme. The second proactively approach them with their in maintaining profitability, he adds. mechanism is virtual office - an entire office eligible claim amount through our ‘Travel integrated into a tablet that helps the staff to Ezee’ application,” says Singhel, adding: RURAL PENETRATION reach out to remotest corners of the country “Our ‘Motor OTS’ application, enables Nearly 9% of the company’s total policies to improve distribution. It is a cost effective customer to self-inspect their claims issued in 2017-18 are in rural areas and it distribution model since it does not need brick by clicking images of their car damage, has seen CAGR of 22.6% in the past 4 years. and mortar offices to function. This not only upload them on company’s self-service Singhel believes there will be tremendous addresses the infrastructure problem, but mobile application ‘insurance wallet’ and growth for insurance in rural areas because also provides employment opportunities in the claim is then settled in few minutes of the potential this untapped market holds. rural areas. Singhel says with the company’s without the customer approaching our The company is working towards increasing 1200 virtual offices, it has been able to tap newer geographies.The 3rd mechanism is the banca tie-ups which has helped the company Suggestions for progress to reach out to customers in these areas ess than 1% of the homes in India are insured and if catastrophic event occurs it will wipe through their network. Laway the effort and money of at least 10-15 years of building a home. In such instances, the economic loss is more than the insured loss. To increase penetration of insurance and to protect TARGETS, PLANS the citizens in a better manner, Bajaj Allainz General Insurance feels it requires a combined effort Bajaj Allianz General Insurance has grown from the regulator and the government to introduce NatCat Parametric insurance. Tapan Singhel, in terms of premium and profitability and MD and CEO, says: “There is a need to bridge the ‘protection gap’ through parametric insurance, will continue to do so. It hopes to continue wherein, if a loss-making event is triggered, the government can pay the claims to people’s Jan to invest in technology to reap the benefits Dhan account directly. The premium for home insurance can be included as a part of property of the latest advancements. Says Singhel: tax. This will ensure that maximum people are covered for catastrophic event, thus avoiding any “In the long run, it is our ambition to be negative impact on our economy.” present in every town and village and to Bajaj Allianz General Insurance wants to change the perception about the industry by give employment opportunities to a million bringing in ease of process and provide need-based solutions. The insurance industry today is people. We will continue to deliver superior perceived as the one which does not pay claims. Singhel argues: “However the reality is that the combined ratio of the industry is 113.9% which indicates that the industry is paying claims.” value to our customers. [email protected]

Banking Frontiers September 2018 23 Insurance Flood insurance yet to gain popularity in India S. Vishwanathan, head - Commercial Lines Underwriting, SBI General Insurance, shares details about the trends in flood insurance business in India:

Dr Ravi Lalwani: India has witnessed floods Such large scale claims due to a natural in different parts of the country. How is disaster are normally treated as catastrophic the flood insurance business this year loss claims with simplified claim procedure compared to the previous years? and reduced number of documentary S. Vishwanathan: Flooding affects evidence for speedy settlement. For this more people worldwide than any other a fast track claim settlement process has form of natural disaster. Unfortunately, been devised wherein instead of physical insurance cover for the risk of flooding dispatch of documents for claim processing, is not widespread. Over the last few the same are scanned and submitted by years, flooding has affected various cities, mail and uploaded on a common drive by townships and rural parts of India. Flood the loss assessors and claim handlers. insurance forms part of the Standard Fire and Special Perils (SFSP) insurance cover What are the most common frauds in flood in India and the fire portfolio has grown by insurance? How do you tackle such frauds? 20% in FY 18-19, which is also the growth The necessity for prompt settlement percentage for flood insurance business. of such claims with a curtailed list of S. Vishwanathan document requirement, as outlined above, What is the size of the flood insurance sold are simple home package and long- at times may lead to fraudulent claimants business in India? And what is your term home product linked to the home as customers lodge fictitious claims in company’s share in it? loan segment of the bank. The profile also the names of those who have not actually Flood cover is a package of multiple includes SME manufacturing and shop suffered any loss in the flood. Sometimes, covers like storm, tempest, flood and risks, catered by the SFSP and business opportunistic customers also may lodge inundation (nomenclature STFI). Flood package products. These products provide such claims. However, at our end, we nip insurance is not sold as a standalone cover flood damage cover to both the structure as such frauds in the bud by ascertaining in India. It is rather offered as a bundled well as contents. identity details of every claimant and cover under that Standard Fire and Special the genuineness of the claims through Perils Insurance (SFSP). Customers are From which parts of the country do you get professional loss investigators. given a choice to opt out of the flood majority of demand for flood insurance? cover. It is, however, seldom exercised by The Indian states of West Bengal, What are the major differences between them. Considering this aspect, the general Orissa, Andhra Pradesh, Kerala, Assam, flood insurance in India and abroad? insurance industry fire business (Including Bihar, Gujrat, Uttar Pradesh, Haryana and Non-life insurance penetration in India is STFI Peril) for FY 17-18 is around Rs108 Punjab are flood prone generally. Eastern only 0.77% of GDP as against global average billion and SBIG has contributed roughly coast of India, parts of Gangetic basin and of 2.82%. Flood cover is optional under Rs8billion (7.4%) to this portfolio. parts of the western coast are most prone property insurances and with such lower to flooding. This stands even more true of penetration levels, there is a glaring problem Please share some details about your late as due to rapid real estate development of inadequate coverage. Hence, in the event flood insurance products. and inadequate drainage systems in major of any major disaster, the government must We offer flood cover through various cities, there is a recurrence of flooding step in to provide financial assistance to products such as standard fire, industrial incidents almost every year within city / affected people (eg - Prime Minister’s Relief all risks, business packages, SME package town premises as well. Fund). Almost all developed countries have – pre-underwritten, simple home package adopted some form of bundled system, and long-term home package. Which technologies are being used for where catastrophe risk coverage (including inspection of flood insurance claims? flood) is attached to homeowner’s or fire What is the profile of the most common Natural calamities such as flood and insurance. Most of the countries abroad also retail customers? SME customers? inundation bring in its wake many insurance get contributions from disaster relief funds The profile for retail customers is claims as such events affect a significant sponsored by the government. primarily residential risks and the products number of people in a geographic territory. [email protected]

26 Banking Frontiers September 2018 Crop Insurance PMFBY pushes AICI’s annual growth to 15% Maintains 32% market share: he Agriculture Insurance Company Pradesh, Maharashtra, Chhattisgarh and of India (AICI), a public sector body, Odisha. The major crops covered are paddy, Taccounts for almost one-third of the wheat, groundnut, soybean and cotton. country’s crop insurance business. During 2016-17, gross premium underwritten by MONSOON IMPACT general insurance companies shot up by More than 55% of India’s cultivable area 32% to `1272 billion, mainly driven by remains rain-fed. A good monsoon helps the crop insurance segment, which has increase soil moisture and thus better rabi become the third largest business after yields in rain-fed areas. Explains Alamelu: motor insurance and healthcare in India. “Bad monsoon results in claims. Even excess The Pradhan Mantri Fasal Bima Yojna rain during kharif has negative impact on (PMFBY) scheme is implemented by the claim pay-outs. A weather derivative can 18 insurance companies on competitive be a supplement for existing crop insurance basis. And India is now the third largest program, particularly for crops not covered agriculture insurance market globally. due to non-availability of yield data. However, for this we need a dense network INNOVATIVE PRODUCTS of tamper proof weather stations.” The major schemes implemented in India T.L. Alamelu reveals that the so far are Comprehensive Crop Insurance CHANNEL PARTNERS Scheme (CCIS), 1985, National Agricultural number of farmers covered At present, AICI’s business primarily comes Insurance Scheme (NAIS) 1999 and under PMFBY is around 50 through financial institutions providing National Crop Insurance Program (NCIP), million as against 35 million seasonal agriculture operations loans. 2013 with 3 components - Modified covered under earlier schemes The company has empanelled more than National Agricultural Insurance Scheme 80 brokers and some 10 micro-insurance (MNAIS), Weather Based Crop Insurance agents. “Farmers willing to participate in Scheme (WBCIS) and Coconut Palm was able to maintain the leadership with crop insurance schemes of the government Insurance Scheme (CPIS). Besides PMFBY 32% market share in 2016-17. During may also join through a large network of 2016, there is a modified version of WBCIS kharif 2016 and rabi 2016-17, the company around 3 lakhs Common Service Centers along with CPIS. implemented PMFBY in 228 districts and spread all over India both in rural and T.L. Alamelu, chairman-cum- 222 districts respectively. It could create a urban areas,” says Alamelu, adding: “The managing director, AICI says apart from well-diversified portfolio. number of borrower farmers covered is the government crop insurance schemes, Kharif premium during 2017-18 rose to around 70% of total farmers covered and AICI has developed a bouquet of innovative, `190 billion from `170 billion a year ago. the balance is non-borrower farmers.” farmer-friendly products, tailor-made for Similarly, during rabi 2017-18, premium specific crops and risks viz, Bio-Fuel Tree/ rose to `60 billion from `55 billion a year TECHNOLOGY FOR SETTLEMENT Plant Insurance, Pulpwood Tree Insurance ago. “The GDP (gross domestic premium) The timely release of subsidy amount Policy, Rubber Plantation Insurance, of AICI rose to `78.93 billion during 2017- by government will speed up claim Coconut Palm Insurance, Cardamom Plant 18 from `69.82 billion during 2016-17. Pan settlement process, says Alamelu and the & Yield Insurance, Potato Crop Insurance, India, the total GDP under crop insurance is use of technology like Remote Sensing Mango Insurance, Rainfall Insurance around `250 billion during 2017-18 against Technology (RST), drones, Mobile App for Scheme for Coffee, Draksha Bima Yojna `225 billion during 2016-17,” says Alamelu. Crop Cutting Experiments (CCEs) will help (Grape Insurance), Varsha Bima and Rabi in faster settlement of claims. Weather Insurance. She adds that the TOP STATES IN PREMIUM number of farmers covered under PMFBY Most of the food crops and oilseeds are EXPANSION PLANS is around 50 million as against 35 million covered under PMFBY. Apple, mango and AICI is making good progress by recording covered under earlier schemes. other fruits and vegetables are generally annual growth of about 15% and retaining covered under WBCIS. its position as market leader. Alamelu KHARIF, RABI PREMIUM UP Alamelu says the top states in term indicates that the company is aiming to The crop insurance coverage and premium of premium are Maharashtra, Madhya cover more number of farmers by increasing have gone up notably after introduction Pradesh, Gujrat and Karnataka and the the reach in rural areas. of PMFBY from kharif 2016 season. AICI major claims during 2017-18 were in Madhya [email protected]

Banking Frontiers September 2018 27 AxisDirect Growth mantra - go deep, stay agile, be delightful #SimpleHai

xis Securities has registered a strong Participants Association of India (CPAI). growth in Q1 FY 2018-19. It has a The BSE CEO awards of the Year 2018 have Astrong base of over 1.9 million also been won by other leading companies, customers. Its flagship brand AxisDirect like Angel Broking (Best Trading Platform), is one of the fastest growing players in the Kotak Commodity Services (Commodity industry and is among the top 3 in terms Research), SIDBI (Contribution for the of total customer base. According to Arun Growth of SME Sector), MCX (Commodity Thukral, MD & CEO, Axis Securities, the Exchange (Metals & Energy)), BSE (Best company has registered a 366% growth in Exchange (Currency Derivatives Segment), average daily turnover as compared to a ANGEL BEE- Angel Broking (Best Mobile year ago period. Its SIP executions in Q1 FY App for Mutual Fund Investments) 2018-19 too have witnessed a 113% yoy rise. and Narnolia Financial Advisors (Most The company’s monthly SIP numbers Consistent Portfolio Manager). are standing around `73 billion in July Thukral says the award is recognition 2018 compared to `35 billion in July 2017 of the company’s efforts to create value and just `15 billion in late 2014. It expects for its clients, for its customer-focused the growth momentum to continue. Says approach that enabled it to garner the Thukral: “The mutual fund industry’s asset very large investor base within the short base is expected to touch Rs100 trillion by Arun Thukral outlines span of 7 years. “Last year we acquired 2025. In the current financial year, SIPs more than 450,000 clients and in terms of would continue to be a strong contributor.” AxisDirect’s intent to create Unique Traded Clients (UTCs) we are now hyper-personalized user among the top 5 equity broking houses. In GREAT USER EXPERIENCE experience through customer client activations, we achieved a significant For any organization to adopt analytics milestone during the last financial year. personalization, it needs to know what All these achievements make us a clear customers like to do when they login to their In the last 8 years, AxisDirect has grown winner,” says he. accounts. This can be achieved by analyzing and plans to keep pace with this growth AxisDirect’s guiding philosophy is to historical data, demographic data, app/ through a 3-pronged strategy - (i) Go deep, keep investing simple in order to ensure web analytics, real-time information and (ii) Stay agile and (iii) Be delightful. Explans customer delight through all its initiatives. customer interactions (through call center, Thukral: “We believe that India is deeply Its web-portal is one of the most simplified branch or chatbot NLP). Such data when underpenetrated with 3-4% population web portals across the industry and it has fed to the recommender engine can provide participating in the equity markets and won the DMA India Awards as well as more relevant information to the users the potential for expansion is enormous. IndiPool Best Design Studio Awards in through dashboards, notifications, emails Therefore, we want to take the Blue Ocean the best website category in 2017. “Our that are real-time and extremely personal to strategy and reach out to new customers by innovative real-time emails which provide the user. Thukral says AxisDirect is now in creating more awareness about the benefits the live market data on email have won the process of creating hyper-personalized of equity as an asset class.” DMA India, DMA Asia as well as DMA user experience through customer analytics. International awards,” says Thukral, adding “We plan to stay agile and lead technology BSE CEO AWARD the company’s mobile app also has one of the innovation by taking big strides in mobile AxisDirect has been winning important best customer adoptions with more than 60% space by leveraging next-gen technologies awards on a regular basis. It won ‘BSE of our volumes happening through the app. primed with artificial intelligence and Commodity Equity Outlook Award in the AxisDirect is also the first brokerage house to machine learning. We also aim to provide category of ‘Top Equity Broker’ at the CEO launch an AI-powered chatbot on WhatsApp, simple yet powerful and highly personalized Weekend 2018 event, organized by Tefla, which empowers customers to get their user interface to our customers. We want supported by Bombay Stock Exchange portfolio, research and market updates on the to create customer delight through great (BSE), Association of National Exchange go without any subscription charges. omnichannel user experience,” says he. Members of India (ANMI) and Commodity [email protected]

28 Banking Frontiers September 2018 Conference Report 2018:Digital Directions & Transformation UNVEILING EXECUTIVE SUMMARY of RESEARCH REPORT

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

Prasanna Lohar, Head-Technology - service to the customers. persons for security related functions and Innovation & Architecture, DCB Bank: BFSI institutions need to work hand ethical hackers to do the testing. Hiring Hyper personalization will be the next in hand with fintech companies. In fact, employees with good digital skills is big thing in the coming 2-3 years in the the government of India is the biggest challenge for most of the companies. BFSI industry. Today, we are working in startup in the country. The government is The rescaling of existing resources collaboration with different partners, but supporting fintechs. In Maharashtra, the and manpower are also important. Digital in the future, most of the things will be government has launched its fintech policy transformation is good for India the digital fast and automatic, and there will be fewer to support fintech companies, Andhra India movement will bring new things and partners for carrying out digital activities. Pradesh government has launched Vizag new business models will create more jobs The right digital architecture minimizes fintech valley and other states like Gujarat in the coming years. the gap to go into the market. are also helping the fintechs. Rishi Aurora, Managing Director For checking the background of a Fintech companies need to focus on Financial Services, Accenture in India: customer for loan approval, there are beneficial activities for the country and Accenture has been in the forefront of digital alternate channels coming up apart from the overall industry. There is big gap between transformation in India. For us, digital CIBIL score like behaviour of the customer India and other countries in adoption means customer and data. Organizations in different social media platforms. Brick of fintech technology. Startups have an which understand and analyze the data and and motor model will always be there, but edge over big IT companies like Infosys, use it for specific personalized campaigns there is a need for combination of online Microsoft and Accenture. are the successful organizations. Based and offline platforms to provide efficient The companies are hiring specialized on structured and unstructured data,

Panel discussion in progress

34 Banking Frontiers September 2018 companies can customize their campaigns. Digital transformation is a very important aspect for banks and NBFC in India. Sonali Kulkarni, Managing Director, Accenture Consulting: Customers, enablers, regulators, government and system partners like fintech players have contributed to the growth of digitization in India’s financial sector. BFSI companies Panelists debate a point should be able to use the unstructured data to make personalized offerings to side, and customers on the other side. The their competitors and partners and the the customers. Banks should design rural customer pays commission to the way ahead for them. Deutsche Bank has processes that are automated and that do agents, brokers and other intermediaries developed internal chatbots for providing not need any human intervention. The for any loans. The digital channels may suggestions with regards to work processes person who gets impacted most due to the not be viable and effective unless the and operations. digital transformation is the employee of interference of the middle man is stopped. Vijay Raghavan, SVP - Risk the organization. It is difficult for bigger For targeting rural India, companies need Management & Fraud Monitoring: organizations to adopt the technology to capture the emotions of the people. Industry needs people with higher calibre changes due to the legacy issue from the They need to develop behaviour-based to do the job rather than depending on technology prospective, especially the authentication and applications. the machines. digital changes. K. Suresh, SVP - IT, Tata AIG Rimpi Bhatia, Chief Manager, Anand Pejawar, President - General Insurance: Insurance products ICICI Prudential Life Insurance: Operations, IT & International are mainly force driven, but this trend is Digital marketing is the way forward and Business, SBI Life Insurance: Recently changing in the last 3-4 years. In future, ICICI Prudential is into it. Buying of an SBI Life Insurance has launched UNO, there will be demand for term insurance insurance policy should be as quick as we or ‘U Need Only One’ an app using which among the customers. In the past, we had are purchasing a fixed deposit plan online. customers can do banking transactions, life introduced telematics service in motor Bhaskar Jutti, CIO, SBI Life and general insurance transactions, mutual and health insurance products. There is Insurance: Life insurance companies in fund and credit cards transactions. They OBD device installed in cars and based India have 1% to 0.5% of the GWP and in can also do the shopping with the app. on the usage of the car, the insurance the last few years we have seen an increase. Marketing is a science and digital is premium gets calculated. Similarly, for There is a wide range of difference in going to help marketing in a very big way. health insurance the insurance premium the investment pattern of life insurance SBI Life Insurance is the only company in gets calculated depending on how much companies in digital technology. Some India, which has introduced a multilingual the person walks. companies are investing huge amounts, website – the content is in fact in 9 languages Biswabrata Chakravorty, CTO, and some are not. Some of the companies and viewers can convert the website as per IndusInd Bank: IndusInd Bank does like us are investing in technology without their requirement. We have also introduced not invest in technology heavily. We thinking about ROI. More than ROI, our chatbot ‘Riya’ which is a text-based invest in technology as per our business we look after the ratio of the IT spends. platform. We will make Riya voice-enabled requirements. We are working on both We have fast track approval process for soon and integrate Alexa on this platform. private and public cloud set-up. We are adoption and approval of new technology. Suresh Shanmugam, Head also moving to open source, and we have Rahul Purandare, DVP - Product Innovation & Future Technology appointed a steering committee to review Management, IDBI Federal Life business information technology and measure all the IT expenses. Recently, Insurance: Customisation increases solutions, Mahindra & Mahindra Bharat Financial Inclusion merged with us the cost to the company. Customers in Financial Services: There is need for BFSI and this entity is now a completely digital banks and insurance companies buy the institutions to move from corporate digital enabled company. We are trying to move products differently. They first buy the to personal digital. After demonetization, to enterprise warehouse model to provide company than the product. Things like there is rise in the money lenders’ business. convenience to our customers. trust and convenience are important for They are providing loans in 1 minute and K.R.C. Murty, Group CIO, Deutsche the customers. We need to identify the their business model is progressive in Bank: There are many digital solutions areas in which customization needs to be nature. In rural India, there are banks, available, but they are not cheap. Fintech done effectively and at low cost. financial institutions and regulator on one companies in India needs to understand [email protected]

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