Vol. 18 No. 10 February 2020 `75 Pages 44

Digital upgrades @ M&M Finance NPLs in global banks Home First Finance Credit cards from RBL Bank www.bankingfrontiers.com

PRESENTATIONS: Fault Lines Revealed N E W S Regulator Just 2 women candidates for Bank of England governor post BIS adds new members, It has now been revealed that only 2 expands 2 groups women had applied The Bank for International Settlements has to become the next invited the central banks of Kuwait, Morocco governor of the Bank and Vietnam to join the institution. This the of England, despite first expansion of the Basel, Switzerland- the fact the Treasury based of central banks since hired a specialist 2011, and this will take its total membership headhunting firm to 63. It is also reported that the Committee aimed at diversifying its on the Global Financial System and the list of candidates. There Markets Committee, 2 groups within the were 21 applications BIS, are also set to grow and BIS has invited from men for the central bank’s top job. From this list Andrey Bailey, who now heads Argentina, Saudi Arabia and Thailand the Financial Conduct Authority, was selected to succeed Mark Carney, who will leave to join the former group and Indonesia, the bank in mid-March. Data released by the Treasury after a Freedom of Information Malaysia and Turkey the latter. Russia and request by the Guardian showed that both the women applicants made the shortlist South Africa will be represented in both the along with 7 men. The response revealed that the 2 women were Santander’s UK chair groups. These additions take the share of Shriti Vadera, and former deputy governor of Bank of England Minouche Shafik. emerging-market economies to about two- fifths of the membership of each committee. Bank of Ghana wins Central Banking Awards The Bank of Ghana has been declared the winner of the Central Banking Awards for 2019. The award has been for the bank’s impressive record of achievements, including significant reforms in the undercapitalized and poorly managed banking sector of the Award for country. Central Banking Awards said Bank of Ghana has been able to deal with a Shaktikanta Das complex set of risks that could have caused severe damage to the West African country’s growing economy. It, however, noted that the central bank still faces several challenges, for which it must recapitalize banks that were previously put into resolution. The finding said “ the performance of the central bank during the past 3 years indicates the institution is well placed to meet such challenges”. The Bank of Ghana has introduced a series of reforms which has ensured a strong financial sectorin the country. Pakistan makes PayPak mandatory has issued new guidelines, including making it mandatory for banking industry to offer PayPak service to customers in order to improve card Governor of the Reserve Bank of India acceptance with an aim to boost financial inclusion. The central bank said banks in Shaktikanta Das has been named ‘Central the country are now bound to offer the domestic payment scheme card, PayPak, to Banker of the Year 2020 – Asia-Pacific’ by the customers as a first priority, whereas cards of international payment schemes The Banker magazine. Naming Das as the like Visa, MasterCard and Union Pay may be issued on the request of the customer. 2020 Central Banker in the Asia-Pacific It also added that the MDR will now be in the range of 1.5% to 2.5%. Previously, region, the magazine said he had brought banks were allowed to charge any fee to the merchants. The central bank also said the in measures to tighten rules around shadow distribution of revenues generated from a merchant among the players including card banking and brought Indian banking up to issuer, card machine deploying entity, and the payment scheme company, had also been standards through a restrained approach rationalized to keep the incentives equitable among all the players. to governance. The magazine, owned by The Financial Times, brings out annual SAMA grants licenses to 2 fintechs rankings of the world’s top banks. In a The Saudi Arabian Monetary Authority (SAMA) has granted licenses to non-bank statement announcing the award, it pointed financial institutions, or fintechs. The first such license has been offered to set up out that Indian banks have faced series of an electronic wallet company and the second for a payment services company in problems in non-performing loans and the Kingdom. This step has been described as part of SAMA’s efforts to achieve the frauds, besides repeated economic slump objectives of the financial sector development program, which is one of the pillars of wherein the central bank cut rates 5 times the Kingdom’s Vision 2030, in enabling financial institutions to support private sector in 2019 and was open to cut them again, growth by opening to non-banking actors. The licenses have been if necessary. It added that Das had tried granted to the Saudi Digital Company (STCPay) to set up the electronic to manage banking issues via scrutiny of wallet company, and to GEIDEA Technology Company for payment services company. lenders outside the traditional bank network The 2 entities have been operating on a trial basis in an experimental environment. and proactively assisted smaller banks.

Banking Frontiers February 2020 5 Project Pipeline Bank of India needs consultant for DWH upgrade RBI plans redesign of Bank of India is looking for a consultant to advise it on upgrading its website its data warehouse facilities, especially The Reserve Bank of India is proposing to on hardware, network infrastructure, redesign and develop its public website, its review gap / analysis for data sub-domains, associated microsites and availability and quality visa-a-vis the Android & iOS mobile app and further bank’s requirements for having next- leverage it by using a standard Content generation data warehouse solutions. Management System or digital experience The bank had upgraded its data platform. In doing so, it intends to strengthen warehouse by implementing Enterprise the external communication framework Datawarehouse in May 2014 and it to convey the roles and functions of RBI has been integrated with the data enhancing RBI’s brand equity in other information coming from different jurisdictions and make the website a catalytic business sources through Informatica- agent for the organization, which will bring CDC and ETL tools. The bank feels a cultural shift in the way RBI thinks and that with the huge growth in the internet-based enterprises and availability of many communicates. It intends to make the website social networks there is huge volume of data available outside the bank that remains a best in class Digital Experience Platform for un-tapped for analysis. Hence there is requirement for a modern data warehouse the website consumers leveraging enhanced strategy to address both enterprise data and big data management. It therefore needs Web 3.0 features. the services of a consultant to help it study its existing data warehouse setup, review gap analysis for data availability and quality vis-a-vis its requirements and recommend most suitable and cost-effective next generation data warehouse solution. NABARD to set up needs consultant to upgrade PMS RADP Union Bank of India is looking for a consultant for designing and implementing a support system for enhancing performance management and talent effectiveness. The bank is aiming to become 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 is also in the process of completing the merger of Andhra Bank and Corporation Bank with it and the merger is expected to pose challenges in the integration of human talent in the 3 banks. The bank feels that while the changes are taking place, it is imperative that the efforts and capabilities of the employees are aligned to the big picture, by encouraging ‘performance mindset’ in the bank. This can be achieved with objective NABARD is planning to set up a Rapid assessment of employee performance, through a system driven mechanism which Application Development Platform (RADP) allows the management to put in place employee engagement initiatives and take to enable it to develop applications for web informed decisions for placement of staff according to individual strengths. The whole and mobiles/tabs (iOS and Android) in process would need an updation of the present Performance Management System. quick time. The bank proposes to acquire a The bank wants the selected consultant to offer an end-to-end solution and the hybrid platform for deployment in-premise process of evolving the solution would include conducting gap analysis, redesigning with license for unlimited number of the process by bringing best in class practices, approach and knowledge, as also timely applications. The solution should include implementation of such initiatives. It wants to have a system which is capable of a minimum of 5-developer licenses. It automatically generating scores according to the performance metrics. wants the RADP to have features of high- productivity development environment SBI to install 6000 ATMs with impact analysis capabilities, design State Bank of India is planning to install some 6000 ATMs under a total outsourced capabilities for smartphones, tablets model. The bank may decide if found necessary to add 20% more ATMs to this number. and web interfaces capability to create The bank has sought proposals from service providers who would be responsible for the hybrid mobile applications for developing procurement, installation and maintenance of these ATMs - cash dispensers essentially - /deploying native applications (iOS, and their maintenance. They will do so for a minimum period of 7 years. The bank wants Android, Windows) for publishing on app the ATMs that are capable of running multi-vendor software and Endpoint Security stores and integrate with device-specific Solution (EPS) implemented by the bank in all its ATMs without any hardware changes. capabilities. The bank is looking for a service The service provider will also be responsible for testing, integration, commissioning and provider to upgrade the existing systems to coordinating the implementation of the MVS and EPS, in the CDs. The machines will the proposed platform for development/ also have to be interfaced with BASE 24 . deployment on any emerging new OS.

6 Banking Frontiers February 2020 Finnoviti-Technoviti 2020 ‘The next Paytm or will emerge from Mumbai’

Banking Frontiers organized the 9th edition of Finnoviti Conference and Awards and the 8th edition of Technoviti Conference and Awards in Mumbai spreading over 2 days. Several banking institutions were represented at the Finnoviti Conference and winners were presented with awards for their innovative products and services. At the Technoviti Conference and Awards, representatives of technology companies exclusively designing and creating products for the BFSI sector discussed the latest trends in digitization, use of AI and ML and other topics. Companies that have come out with products and services that have materially changed the way banks operate were presented with awards for their innovative ideas.

atej Patil, Maharashtra’s minister of and 5000 delegates from 50+ countries state for Information Technology, comprising fintech startups are expected to SHome (Urban), Housing, Transport, attend it along with regulators, key financial Parliamentary Affairs & Ex-servicemen, was institutions, tech companies, governments, the chief guest at the Technoviti Conference industry bodies, corporates and students. and Awards function, and presented the The minister added that through the awards to the winning innovators. India Fintech Festival), the state government Addressing the gathering, Patil said looks forward to host 1000+ delegates with its 400+ fintechs, an API sandbox, very from all over the world. IFF will serve as a favorable investment climate and presence representation for the innovations of the of high level educational institutions, best of over 2000+ Indian startups working Maharashtra is poised to become a leader in to make India a startup hub, he added. the fintech movement in India. Patil mentioned that the Mumbai He expressed confidence that Mumbai Fintech Hub has done a lot of excellent will transform into a global fintech hub and things in the last few years for creating gateway in the country soon and the next a robust framework, being a facilitator Google Pay or Paytm will emerge from the between startups and investors, developing city in the next decade. educational framework for the sector, etc.” Patil recalled that the Mumbai Fintech You will get to see all of them in the festival, Hub, which is the state government’s which will ensure that we have walked the investment platform to promote the fintech talk. On the occasion of Technoviti Awards, I ecosystem in the state, has joined hands with appeal to you all to join and lend strength to Satej Patil, MoS, IT FinTech Convergence Council, an initiative the collaborative efforts of us all for putting and to fintech-ready talent pool. of the Internet and Mobile Association of the Indian fintech sector on the global The minister complimented Team India for a collaborative growth ecosystem fintech map, he added. Banking Frontiers for having organized for fintechs in the country. The two bodies Patil also reiterated that the state Finnoviti and Technoviti Conferences have jointly fashioned the ‘India Fintech government stands committed to the path of and Awards and motivated technology Festival (IFF)’ a global platform to showcase progress and economic development of the innovations in the financial services domain. the opportunities while discussing the key state, industries and people. He also pointed He also had a word of praise for the award challenges in the industry and the possible out that Maharashtra was the first state in winners, who he said deserved the awards solutions to counter the same. India Fintech the country to have launched a fintech policy for their efforts in making use of technology Festival 2020 is going to be organized on 4 which addresses 5 key pillars for boosting to create new products and services in the & 5 March 2020 at MMRDA ground, BKC the financial technology sector - access financial services sector, which in turn in Mumbai, he said, adding the event is to capital, promoting open innovation, benefits common people. backed by the government of Maharashtra catalyzing ecosystem, global market access [email protected]

Banking Frontiers February 2020 7 Finnoviti-Technoviti 2020 Finnoviti 2020 Winners Innovative products and services from banks and financial services institutions receive recogntion:

U GRO Capital wins prize for its Sector Specific Scorecard Bajaj Finance wins recognition for its DDF Core Strategy

Fino Payments Bank wins prize for its Shubh Account Bajaj Allianz General Insurance wins prize for its Digi Swasth

HDFC Bank wins prizes for its CRM@HDFC Bank, WhatApp Banking and Smart Slips IndusInd Bank gets prizes for its DUO & NEXT Card and Enterprise Data Warehouse 8 Banking Frontiers February 2020 State Bank of India wins award for its Customer Happiness Index

HDFC Life wins an award for its Loan Management System

Citibank wins the prize for its Citi Payments Insights

Bank of Baroda gets awarded for its Cardless Transaction POS

Axis Bank is recognized for its One Connect

Canara Bank wins award for its CANDLE

Tata Capital wins the award for its Digital Lending-SME Finance Banking Frontiers February 2020 9 Finnoviti-Technoviti 2020

Kotak Mahindra Bank receives the award for its Keya

Motilal Oswal Financial Services wins award for ‘Improving Customer Reach Reation Using Voice Blast’

ECL Finance gets honoured for its Edelweiss Smart Desk

Central Bank of India gets award for its Security Measures

ICICI Prudential Life Insurance gets award for its Leadership in Credit Risk Management - Debt Mutual Funds

Union Bank of India gets the prize for its Cyber Defence Center

10 Banking Frontiers February 2020 Reliance Nippon Life Insurance wins prize for its Building Exception Reports using Audit Analytics ICICI Securities gets the award for ICICI Direct Prime Plan

India Post Payments Bank wins the award for its Interoperable Doorstep Banking

Bharti AXA Life Insurance wins the award for its eASE

DFCC Bank gets the award for its iConnect

Fullerton India Credit Co wins award for its Personal Loan Sales App

DCB Bank wins the prize for its Finflex

Banking Frontiers February 2020 11 Emirates Islamic Bank gets awarded for its Public Transport Finnoviti-Technoviti 2020 Technoviti 2020 Winners Tech companies developing solutions and tools for the BFSI institutions get recognition for their innovative offerings:

Bahwan Cybertek gets an award for its EWS Aurion Pro wins award for its iCashpro

FSS gets rewarded for its FSS Voice Commerce Online PSB Loans wins award for its PSBLoansin59minutes.com

VA Tech Ventures gets an award for its Happay Corporate Expense Management Solution Infrasoft Technologies wins an award for its Kiya.ai Omnichannel & Open Banking Platform 12 Banking Frontiers February 2020 Experian Credit Information Co wins the award for its Smart Match Miscot Systems gets recognition for its SwiftDB Vault

CareRisk Solutions wins the award for its Kalypto/ECL Partner Hub wins the award for its Invoice Hub

ECS Fin wins the award for its IMS Payments

FIME wins recognition for its TrustAPI

Banking Frontiers February 2020 13 Finnoviti-Technoviti 2020

Singzy wins the award for its Video-based Customer Onboarding for Financial Services Auditime gets award for its Vueframe Digital Auditor

Karza Technologies wins the award for its KScan NeoSOFT Technologies gets recognition for its EngagePro

Pebble is awarded for its Pebble DLT

GeoSpoc wins the award for its GIS-based Alternative Credit Scoring

14 Banking Frontiers February 2020 Epikindifi wins the award for its Vanguard AllinCall Research & Solutions gets recognized for its Sales AI

YouweConnect Tech Enterprises wins the award for its DocsinBlocks Hotfoot Technology Solutions wins the award for its Rapid

Trustmore Technologies wins the award for its Digital Escrow Payments Platform

Yoti wins the prize for its Yoti Doc Scan

Banking Frontiers February 2020 15 Cover Story

PRESENTATIONS: Fault Lines Revealed

In today’s information overloaded environment, face-to-face selling is giving way to power packed presentations. But there are several fault lines that impede progress, finds this study by Banking Frontiers:

very IT company is doing its Key people are quickly identified to make partner, the client organizations have marketing in media, social media, the presentation, who begin to look as to look not only at technology aspects, Eevents, conferences, etc. However, if they are on the verge of conquering but many others including financial the bell rings only when it is called to the world. strengths, the organization’s stability, make a presentation to some team at a Then they make the presentation…… product maturity, competitive scenario, prospective organization. That is when some pass the test, some fail. etc. Do the IT companies making the real excitement begins; dopamine Today’s crowded market and fierce presentations understand all these levels surge, creating extra energy. A competition make it tougher than ever concerns? Sometimes yes, sometimes frenzied search for information and to clinch a deal, more so when selling no. In a hyper-competitive marketplace, insight begins to update the existing technology to banks and financial services technology vendors win if they have presentation to create the desired impact. institutions. When selecting a technology holistic strategies and persuasive

16 Banking Frontiers February 2020 presentations to convert opportunity are not time conscious. “They need to into success. calculate how every 10 seconds can be A presentation is therefore a key tool. useful. There are issues in the way they When done well, a presentation can take speak and the content that is there in the the technology company to the next level sales pitch. Typically, they have problem of the ladder. in coordinating between their own people So what do the decision makers making the presentation. Their focus in BFSI organizations feel about should ideally be on product demo or presentations that IT companies make? business value, but definitely not both,” Mostly, they feel unhappy, and sometime avers Lohar. frustrated. Many presentations leave a Another point that Lohar found in lot to be desired and fall short on several the way sales presentations are made by parameters to take the opportunity to the startups is that the teams consist mainly next level. Many companies with good IT people and not business people. And products and technologies have failed mostly their talking points veer more because the presentation was lacking. around existing problems and less on Having said that, there is broad the solutions. “The issue I believe is that agreement that there is no universal many of the people in startups are focused solution for creating a great presentation. Prasanna Lohar advises people on creating an organization and they Each presenter has his own pitch which from IT companys to understand may not have a good mentor. They have will be different from others’. What they who their target audience is limited data on market share of various must attempt is to put their best thoughts competitors and often they are unable to and energy into creating a meaningful before they make presentations give data on profitability,” says he. presentation and then leverage it to about their product, and to create to a powerful impact. concentrate on the product that EVOLVING GUIDELINES this target audience requires “At DCB Bank, what we have done is MINDSET COUNTS that we have created guidelines for sales Rajesh Lahori, head of Cash Management presentations. We tell them to make the Product at RBL Bank, says salespeople products. In the process, they miss the presentations short and insist on demos from IT companies making presentations whole plot. “But banks have a very clear and less of powerpoints. Our guidelines often fail to scan the target bank’s problem statement. Majority of these big explain what we in the technology team market. “Most often their mindset is that IT companies don’t study the audience the company they represent has a great and come with a 30,000 ft pitch. There is product. They assume that it will work a difference, for example, between us and 10 improvements that BFSI clients want to see in presentations made this way and that way. This leaves us in HDFC Bank. Volume is critical for them, by IT companies the bank to figure out how the product but innovation is critical for us,” says he. 1 Better time management. fits into our activities. They come with He mentions about the mentoring he 2 Lesser time spent on profiling ‘one size fits all approach’,” he says. has done for salespeople: “We all have the company. However, Lahori maintains that limited patience and getting repeated More focus on the product and mature technology organizations have opportunities to make presentations is its innovation. domain specialists and they help bring really difficult. Typically, we will call 4 More business focus. a perspective. But startups often do a limited number of IT companies for 5 Better awareness of the profile of not have this facility. “The startups making presentations,” he says. the people being presented to. have not thought it through stage 1 He also points out that often 6 Better understanding of and stage 2. They are not clear whether IT salespeople do more R&D while the ecosystem of the client they are looking for equity or business preparing to make presentations at large organization. or partnership. They are hedging their organizations because such organizations 7 Include critical information such bets, but that requires different pitches. ask very clear cut questions. as customers, implementation The product is only one tool. They blur time scales. the line and we are forced to ask a lot of STARTUPS LAG 8 Better product demo. questions,” says he. Prasanna Lohar, head of Technology 9 Reduce clutter. Lahori also explains that large IT Innovation & Architecture at DCB Bank, 10 Show the benefit to society companies seems to have a problem says salespeople from early stage startups at large. of plenty, ie, they push across multiple often make crude presentations and

Banking Frontiers February 2020 17 Cover Story

He, however, reveals that some of the startups make it a point to be precise and to the point, but they often get into fanciful details. Established companies sometimes talk a bit too much. “I give feedback after the presentations and most of them appreciate it,” he says.

REHEARSAL REQUIRED Sandeep Sethi, who has been in various leadership roles at ICICI Bank, LG, Videocon, HCL and Wipro, says he insists that startups rehearse before they make presentations to senior management. “They like to do many slides about self- intro, which we ask them to cut down to a single slide. Our people are more interested in the business case and Sunder Krishnan feels most to see the prototype and the solution. Sandeep Sethi stresses that often the presentations IT We give typically a 15-minute slot, salespeople should ensure sometimes extendable to 20-25 minutes, made are weak and the person so the intro should not take more than the idea projected in their making the presentations fails 2-2.5 minutes. We do not want to see presentations is accepted by to understand the level of the architecture or information flow, as these the target audience and it is well audience are technical things that business leaders taken to the pilot stage are not interested in. I find this flaw very in the bank expect and we share this with common among technology salespeople, stage. Then comes issues of execution and the salespeople in advance,” says Lohar. and so we make them rehearse multiple compliance, he says. He, however, admits that some of the times. Most often, they use small font He advises salespeople to go for more presentations are really crisp and well sizes in their ppt presentations. And they AV content and be careful about their supported by a story. “Where there is a do not seem to be having standardized speaking skills. “Sometimes there can be personal experience, it flies immediately,” templates. Our people are used to seeing regional touch in the language, though he says. presentations in a certain style, but the that is usually not a problem. We do Lohar reiterates that IT companies presentations made by startups have too not give a mike, so they have to be loud must make sure what their target audience many distractions,” he explains. enough,” he adds. is before making a presentation. “I see a Sethi points that salespeople of lot of repletion of data, like architecture of startups should understand that the USE CASE LACKING solution. Mature IT companies like IBM, purpose of the meeting is to give a A spokesperson for HDFC Bank points Microsoft, FSS, Worldline, etc, that offer demo to the senior management, but out that salespeople from IT companies many services and products, have lot of unfortunately most of them are not often do not give the use case in their data and they tend to talk about products prepared for this. “Many a times they presentations. “It has been our experience other than what we require. This often speak softly and are not confident and that if an existing company is coming results in generic presentations. They seem to lack energy. Fortunately, the out with a new product and it wants the seem to be keen to show their whole reverse is sometimes true,” he says. product to be sold to us, then they do not portfolio,” says he. He is of the view that making sales know what type of partners they already Another lacuna Lohar finds in some of presentations is considered as part of have on board. They highlight corporate the presentations is that they miss out on business in more mature IT companies. presentations and then leave it to us to critical information at the first meeting, However, he says it has been his figure out if the product fits our needs. such as list of customers, implementation experience that the person making the Surely, they need to do lot of R&D before time scale, etc. They make presentations presentation may not be aware of many presenting,” he says. without focus on products. “We bankers details. The most important thing in any In the case of new companies want short presentations. We cannot sales presentation is to ensure that the which have come up with, say, an AI afford to spare more than 30-45 minutes idea projected is accepted by the target platform, their salespeople too often lack to a company,” he says. audience and it is well taken to the pilot preparation to discuss the salient aspects

18 Banking Frontiers February 2020 of the platform, he says, adding that they she says, adding: “They come without want to come and discuss our pain points. homework and want to show their whole “If we see a pain point, we will deck with the hope that something will discuss it with our peers and colleagues, click. They come unprepared sometimes or we research on the web, or we look at not understanding the role of the person those who have pitched to us in the past to whom they are making the presentation. and recollect that. Also, we publicize Big companies have different teams and it at innovation summits. I believe IT they do not coordinate with each other. The companies need to know people in the account manager is not always available, target organization by doing basic R&D. and especially in consulting and solutions, For that they have to build some trust as they have not done their homework.” rapport with the existing employees. In She points out that some of the fact, they should be asking an existing analytics and rating firms are more customer for an intro into another bank, proactive in their engagement and most especially for a telephonic interaction to of the times they share an agenda and ask begin with,” he explains. what all need to be discussed. She insists that while making FOCUS MORE ON COMPANY presentations, product or solution He also maintains that if a sales pitch Tina Singh shares her demo is made only in the second phase. contains content more about the She believes that TCS is more focused corporate, it is like a cold call. “Most experience of large companies while making presentation and IBM is often, they do not tailor the presentation. whose salespeople come getting better. “They have corrected the They talk about concept and problem without homework and attempt overemphasis on technology,” she says. statement and ROI and less about the to show their whole deck hoping product on offer. They need to inform the something will click BUSINESS BACKGROUND HELPS prospective customer about use cases at Tina Singh says people with business other institutions and how the product fast and 40-50% of those associated with background are better in sales scores against competitors,” he adds. the bank have managed to meet scalability presentations than those with IT He is of the view that just 15-20% and security standards of the bank. “They background. “Over the years, sales of the people across small and large have a problem of funding. We have a fear presentations are getting better, but the companies come prepared especially of startups closing down and we look at problem is that there is too much clutter when they have to create awareness and the track record of the promotor, equity now,” she says. curiosity in the prospective customer and the source of funding before we Rajesh Lahori of RBL Bank elaborates bank. “I feel even if they do have an decide to associate with it. If a fintech is the normal practice of how presentations understanding, they prefer to not share not strong or viable, we plan to take over are conducted. “Typically, IT companies much,” he moans. the product and develop it in-house,” he are called by technology teams from He believes that banks should be elaborates. within the bank, which has a team of setting up competition monitoring teams, Tina Singh, chief digital officer at IT and business to do screening. Even if just as they do for corporate banking. He Mahindra and Mahindra Financial the guy is pitching wrong, the objective says HDFC Bank does some 150 projects Services, believes that since startups is to get to the main issue. The cross- in a year, and 60-80 go live every year. have very simple propositions, their sales functional team assimilates this. Also, we “So imagine how many IT companies we presentations need only few minutes. “My screen out those who pitch too well, but need as partners,” he asks. larger problem is with big companies,” don’t have the basic strengths,” says he. He believes that innovations have to be organization-focused and should include tangible as well as intangible When presentations become flop shows his is an unforgettable experience narrated by a senior manager in a leading benefits. Only 20% innovations will financial organization. impact topline and bottomline, 40% will T “We had arranged to gather senior internal stakeholders of the bank for 1-hour improve certain offerings and the balance presentation by a prospective service provider. A senior representative of the will improve customer experience, he company flew in from Bengaluru and addressed the people present, chiefly talking says from his experience. about his company. I told to spend less time on intro and more on the product on offer. He could not do so. Obviously, the presentation left a bad impression, SOME STARTUPS DOING WELL especially about the capability of the product.” He, however, believes that fintechs are

Banking Frontiers February 2020 19 Cover Story

VIRGIN THOUGHT PROCESS this could be a cultural factor. Indians Lahori is happy to see that most of the are good in the unplanned world but bad salespeople come with a very virgin in the planned world, says he, adding thought process. “They come with the startups are unconscious about time and passion that technology will solve all they do not even ask how much time they problems on earth. Our standards of have for making a presentation. what is ideal have become diluted and interacting with them helps purify this. TEMPLATES WILL DO GOOD The largest risk is the ability to deliver Chaitanya Wagh, CTO, JM Financial, and scale over a period of time and that believes that MNC technology companies is very person-dependent for a fresh have standard templates while making company. Some of them overdo the presentations, whether this is good or homework and tell you what is wrong bad. “However, that does not work for our with our house - especially those who kind of setup, especially when something have lots of experience and then have got innovative and front-end concepts have into the technology part. The large IT to be presented. It is good if some bigtech companies bring a larger international wants to present a company profile and perspective as they have that expertise,” portfolio. I believe smalltechs have a way he elaborates. Chaitanya Wagh is of the view of putting things away. Typically they Lahori also mentions that many of the that some of the fintechs do are given very short time. They spend too models that salespeople adopt are revenue better in their presentations much time on intro and fail to present driven. They also mention about various what is good for the client or the society complying standards, but on going deeper, than bigtechs, but what at large,” he says. there are gaps. “Actually, security costs they must do is to focus on He also states that there is need for them a lot. They are depending on the innovation per se and the the presenters to provide details of what markets they are in, and plan accordingly. benefit to society at large their companies have done in the past. So you could have large companies selling “As for human part of the presentation,” both the application and the security side lots of clutter. Startups, he says, do not he says, “fintechs are faster than bigtechs by side,” he says. come with poorly designed presentations. to come to what the offerings are. Many Lahori sees about 3 presentations per He rarely sees a badly made presentation are able to explain well. Only thing is that month, most of them in second and third by them. they need to focus on innovation per se rounds. “That is when we know whether and the benefit to society at large. Bigtechs it is vaporware or real. We ask them UNWANTED STRESS ON PPT usually take more time than fintechs to do demonstrations. The initial pitch is Sunder Krishnan, chief risk officer, come to the innovation part.” typically a blend of both business and Reliance Nippon Life Insurance, says However, the worst thing about sales technology,” he says. that IT companies lay a lot of stress on presentations is that salespeople tend to He maintains that one thing that ppt presentations, but it is important for assume that if 5 minutes are given, they most presenters do not do well is them to ascertain what kind of audience will get 10 minutes, he says with anguish. appropriate follow-through. If there is they are addressing and the objective. He He also believes that it is okay to use videos a question from a junior person in the feels most often the preparations they for customer testimony, process flow or bank, they may skip the response. “But make are weak and the person making showing products in use, and justifies it is a question from the company. It is presentations fails to understand the level that video presentations catch attention like a full toss ball being bowled at you of audience. “Lack of data orientation and convey the impact effectively. and it is an opportunity to strike. The conveys gut feel rather than conviction. The conclusion arising from this study question is how you convert the customer Data has better conviction value and is that business growth is stifled at most in a crowded market. Leaving too many evidential value,” says he, adding it will IT companies due to their weak skills in loose ends is bad,” he says. be good for salespeople to think out of preparing and delivering presentations. Lahori has a different view that mature the box, be street smart and bring some Those that do overcome their weaknesses companies make their presentations too kind of life at the interaction. He is of the can look forward to a brighter future. fanciful with too much tech jargon and view that foreigners are a bit cold, and [email protected]

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20 Banking Frontiers February 2020 Credit Cards RBL Bank: A remarkable credit card journey Bikram Yadav, business head - Credit Cards at RBL Bank outlines the achievements and the enabling strategy:

Mehul Dani: How did you achieve the growth What is the credit card usage for card in total number of credit cards issued by your present transactions now versus 6 months bank in the current FY so far? ago and 12 months ago? Bikram Yadav: RBL Bank acquired a Volume of total transactions on RBL boutique business of 40,000 credit cards Bank Credit Cards has increased by 36% from Royal Bank of Scotland in 2014 in the last 6 months and by 75% in the marking its foray into credit card business. last 1 year. Similar trend in visible in card In a timeframe of 5 years, it has grown to present transactions as well with volume 2.5 million customers and become one of growing up by 37% in last 6 months and the top 6 credit card issuers in India. In the 79% in last year. last 3 years, the business grew its customer base at a CAGR of 119%. This rapid Please give update about risk and growth has been possible due to various cybersecurity’ initiatives relating to cards. factors: (i) Continuous experimentation – Our card business has always been experimentation and staying close to ground vigilant and swift in addressing any reality has been the forte of the business irregularities making it one of the most enabling it to come up with novel solutions secure credit cards in India. We were the (ii) Compelling customer value proposition first to introduce switch on/off feature - with customer preferences at the centre, Bikram Yadav mentions that for cards and make it available over the business has always built compelling value mobile app. All cards are EMV chip and proposition to provide maximum value to RBL Bank’s credit card business PIN enabled providing global standard the customer while making the experience is permanently in beta mode security against skimming and counterfeit seamless with the help of digital first with experiments done to frauds. We continuously monitor for solutions (iii) Partnership approach – understand customer behavior any anomalies in transactions to protect augmenting product value propositions customers. We insure customers against all leveraging partner’s strengths has been We understand that customers’ needs transaction frauds where 2FA (OTP/PIN) the secret recipe (iv) Focus on being digital would shift over time. We continuously is not present. We also provide option to – RBL MyCard mobile app platform, evaluate the relevance of products with switch on/off international transactions on AI-based chat bot, reward and loyalty respect to needs of customers and spend the fly, protecting customers from potential platform are a few examples of seamless patterns and offer them an upgrade option frauds where 2FA is not present. digital experiences the business built for to an improved and higher variant. This has customers (v) State of the art technology – been instrumental in keeping the customers How far has the loyalty points program The bank’s investment on mainframe card engaged with our products. been successful in attracting and retaining management system allows processing to Our credit card business is permanently customers? be seamless and swift, making it capable of in beta mode, with multiple experiments Our loyalty program is built around handling millions of transactions with ease. being conducted at a segment level to reward points with numerous ways for understand customer behavior and redemption ranging from flight tickets to What are the major changes observed preferences at ground level. Recently eCommerce shopping to mobile recharge. in the usage pattern of credit cards by we had launched India’s first 0% forex With completely digital journey and different customer segments in last 12 mark-up travel credit card (World Safari) simplified redemption process, the loyalty months? and the benefits of this credit card can be program plays a crucial role in high The major shift observed in the last 12 extended to children by parents through an engagement and retention. The business months are (i) volume of online transactions add-on card. scaled a milestone of 1 million customers is increasing rapidly with eCommerce We have formed various strategic in July 2018 and added 1 million customers (ii) revolution in payments industry led partnerships in the credit card segment by July 2019 making the bank the fastest to increase in tap-n-pay and eWallet and have been associated with some of growing credit card issuer in the country. transactions (iii) increasing customer base the best names including Bajaj Finserv, By the end of FY2019-20, we would easily in tier 2 & 3 centers with growing financial BookMyShow, Paisa Bazaar, ET Money, cross the 2.65 million customer base mark. awareness. MoneyTap, etc. [email protected]

Banking Frontiers February 2020 21 Conference Highlights Highlights

BOOSTING TRUST -Beyond the Basics KNOWLEDGE PARTNER

Banking Frontiers organized a conference on cybersecurity and risk management strategies in Mumbai in association with Expleo Solutions Limited. Highlights of the discussions at the conference:

veryone should be delighted while the applications which we purchase were sitting with the developer’s team in that financial organizations are from technology vendors are still not getting their office. We daily visited that office Esuccessfully adopting multiple into an agile methodology. The applications during the development lifecycle and a facets of digitization to augment offerings, which are developed in-house are driving created mindset among the developer improve CX, reduce operating cost and the developers. These have almost zero staff. All my applications which are coming enhance operational efficiency. Open APIs application security vulnerabilities. from the vendors have a huge number of have infinitely empowered collaborations Applications which come from tier-1 security vulnerabilities. We have a team of and experiences for organizations by vendors have failed to comply with the top 40 people to check these vulnerabilities. simplifying complexities. This happiness 10 IOS guidelines. After that our CISO checks them, before it comes with an equally big fear - with every Technology companies need to create goes to the final production. new technology and innovation, cybercrime a mindset before developing products and We are in no way close to open banking is escalating, resulting in losses, penalties customization as per banks’ requirements in India. In European countries all the and loss of trust and reputation. To identify at a lowest common denominator. For banks have come together, and they have how business and management strategies example, when Yes Bank did core banking decided on standardized format in which can arrest the rising threats and ensure migration, I ensured my CISO and IT team APIs are developed. So, unless there is a smooth continuity, Banking Frontiers A panelist making a valid point organised an insightful session of senior business and technology leaders from the BFSI to discuss cyber security risks in current scenario of business and strategies to combat them.

Anup Purohit, Sr. President & CIO, Yes Bank: Security is the mindset, 20% of our applications are developed by our in-house team. Our development team is a mix of employee and partner staff. Our 10% applications have an agile methodology

22 Banking Frontiers February 2020 standard format made by a governing body for APIs, API banking will not be a reality. We will continue doing open banking in a individualized manner. There is scope for the open banking, all the API need not to be standardized, banks have right to do innovations in API and they can build their own innovations. No one in the organization can say no to security, including the board members. Security infrastructure should not have any budget constraints. It is up to the CISO and the CIO of banks to have right kind of security tools and framework. Attentive delegates listening to a point being made Sharatee Ghosh, EVP-Service & Quality, BOOSTING TRUST Kotak Mahindra Bank: The risk versus meets the needs of the customer then we how the services impact the banks before convenience issue is always a problem check value chain, service or product. Each developing a product related to it. When in banking. Product managers and value chain has its own processes and risks. you are developing your internal product -Beyond the Basics marketers want the best possible UI and We have focused on risk management on you probably need whole planning and UX in their products. None of the global equal intervals from ideation, planning, testing for it. But there is also a bigger organizations which are into fintech have delivery and to the end results. vulnerability in the current open banking strong regulatory guidelines. We are all When it comes to innovation or new scenario - interfaces and networking. living in a viral world. For example, there kind of service, data plays a very important There are so many third parties that was a problem in the mobile banking role because most of our services and you interact with each of them requiring service of a bank, which went viral on products are online. The world is moving to have the same kind of security, mindset Twitter and WhatsApp. away from information technology. IT staff and thought process when they are We do not want to compromise on is performing risk management functions deploying it, because that could be your risk, and we need to focus on educating to protect information. We are focusing on weakest when you actually start our customers. Aadhaar has brought how intuitive insurance can be brought to deploying it in your product. We focus on standardization in banking and banks India. Insurance companies should be how to build your fortress correctly. And are innovating. Banks need to make their focusing on giving money to the customer the kind of security that you need to have. customers scalable - for example if one of before they need it. The developer needs to have the right kind our customers wants to open 811 account, The customer expects human touch of mindset. If everybody in the ecosystem when he or she has come back from a night and not the technology part to get its fund places the same level of responsibility and shift, then it should be extremely scalable. back. We focus more on the customer accountability, it would address many of In the last 3-4 years, we have realised experience than product or service launch the challenges in the ecosystem. that our product managers were thinking initiatives. We also perform vulnerability Security is expected to be inbuilt and the like risk managers and that stiffens and penetration tests to see whether there customer is not giving you a brownie point innovation. We are focusing on product are any kind of risks, and if there are, just because your application is secure and managers to do blue sky thinking, then how can we mitigate those risks. Quality that is fundamentally what the customer come back and challenge the rest of professionals are always perceived as expects from Banks and the Banks expect the organization. We must constantly auditors more than quality experts. We from Technology and Product providers. challenge our developers and that’s the need to do planning about the mitigating Hence, security needs to be a key element way to go ahead. risks. Intuitive insurance journey has for any designing process. It’s a question of started, and it is in the developing phase. what you know, what you need for the end Shivangi Kamath, Head- Process We have ideating about it, and we will customer and how you build it to make Excellence Group, TATA AIG General implement it in the coming years. sure that it is secured and at least meets Insurance: Insurance is a service industry the basic expectations from the customers. and we focus on what a customer wants. Balaji Viswanathan, Managing Director You cannot compartmentalize your Before the launch of any product, it goes & CEO, Expleo Solutions: Technology quality function; it must start from the through an ideation phase. If the product service providers need to understand beginning - right from the planning stage.

Banking Frontiers February 2020 23 Conference Highlights

Everything is in agile mode and agile is not associated with technology but with project execution. So, you start designing it from the beginning and make sure that everybody in the ecosystem, including product team and developer team work seamlessly. Companies need to go beyond security to deliver it.

Sachin Vijayvargia, CTO, India Post Payments Bank: We have both the mobile Delegates at the session banking app and the agent app. It is called as ‘Dakiya’ app. Dakiya is actually the India’s open banking concept is want a scenario that something happens person who mainly delivers mails and today different from those developed by other in the public media which results in a he is the same person who provides door- countries. European banks have tie- brand erosion. Most of the vulnerabilities step banking services to the customers of ups with fintechs for open banking. happen because of the people inside the India Post Payments Bank. We are the only IndiaStack is a pioneer in providing access ecosystem - inhouse developers, staff and bank in India, to which NPCI has given an to biometric-based authentication. We mangers as most of the time they commit exceptional approval for an agent driven use open banking in preventing frauds, unknowingly these kinds of mistakes and UPI. No banks or financial institutions in customer identification and in identity these become issues after some time. in India has UPI services outside the PSP management. We have done partnerships app. Instead of and PIN we are with third parties and merchant Balaji Viswanathan: A cybersecurity have used the biometric authentication of aggregators. For example, we have a tie-up event happens every 32 seconds around the customer for our app. with a broking entity, which allows our the world and India stands second in the Security is a building process. It should customer to trade on that entity’s platform, number of security attacks. We are trying not start in the development team. Ideally, but IndusInd Bank is not visible to them. to incorporate the best practices followed it should start from the product. Whenever So, it is an example of open banking for a across the globe in cybersecurity solutions the requirements are being sketched, the stock company in our ecosystem. and we have worked with over 60 banks security details should be shared with the Microfinance company Bharat and financial institution in addressing IT team and then with the vendors. We Finance has recently merged with us and these challenges. have implemented API technology two use open banking in the microfinance In the last 5 years, 30-35 CEOs and months ago in our bank. We realize that segment to open accounts instantaneously. probably double the number of CIOs the hardships that we had to face by writing Our ‘Sangam Manager’ meets a group left their organisations due to security abstract layers on top of already developed of customers on the field. The Sangam incidents and resultant Financial and products are creating customized way of Manager empowered to open accounts on Reputational losses. For example, CEOs solving a given problem. the spot. of Yahoo, Uber and Sony have lost their We are trying federated authentic Today, API banking model is context- jobs due to the cybersecurity issues in protocols that they do not seek into our 1.5 specific, but if you look at India’s economy their companies. Security is not the direct crore database. We can innovate in terms at large, the next wave will come from PDP responsibility of the CEOs, but they face of API to provide a particular experience and account aggregator models. There impact of it. to the customer and to integrate with are 3-4 banks working on it. Once it gets According to a recent study almost fintech players. mainstream then customer approval will 60% of cyberattacks are not for money. can be done on the fly, information will So, it is mostly related to reputation and Biswabrata Chakravorty, CIO, IndusInd get analysed on the fly. Information will the question is how you would deal with Bank: At an enterprise level, there must result in asset for the product development such attacks. be a security architecture and companies and the products will be delivered to the We have an assessment tool kit and must look at all the layers of security - customer on the fly. So, it will be truly an implementation checklist and we are trying from the physical layer to the web. Detect, open banking. It is a dream journey and a to make security through vulnerability respond and remediate are the 3 factors vision for us. assessment. We are confident these will that companies need to focus. We have also The cost of compliance and remediation help to maintain reputation for financial seen that developers do not pay attention is typically very high and the cost of institutions. on the educational aspect. prevention is sometimes lower. We don’t [email protected]

24 Banking Frontiers February 2020 Digitization Efforts Phygital is the strategy for Mahindra Finance Mahindra & Mahindra Financial Services has been an early adopter of technology. Today, it uses blockchain, AI and ML and at the same time physical branches to serve its predominantly rural customers in a more efficient manner resulting in total customer delight:

ahindra & Mahindra Financial fueling rural aspirations and changing the Services, the rural-focused NBFC business landscape. “Organized operations,” Marm of the automobile major he points out, “are gaining momentum Mahindra & Mahindra, is today the top and are being increasingly accepted and financier of tractors in the country. The adopted, especially by younger rural company has several other financial products Indians. In line with these fundamental to make the lives of the rural and agricultural shifts, we at Mahindra Finance, have been community a better experience. The working at defining new financial service company believes that given the nature of the and delivery mechanisms supported by geographies it operates in and the different integration with mobile, the use of big segments of customers it serves in the deepest data and artificial intelligence to deliver pockets of rural India, it needs to have a viable tailored, personalized experiences and mix of the digital and the physical business complementary partnerships to the rural models in the foreseeable future. It is just and semi-urban communities.” being practical, feels the company. Mahindra Finance’s vice chairman and TECH - KEY ENABLER MD Ramesh Iyer, says while on the one “Hence, we look at technology as a key hand, the company will offer fully digital, enabler, playing a crucial role in improving online products for specific target customer Ramesh Iyer outlines how productivity, reaching a broader audience segments, on the other, it will continue to and delivering better customer experience. serve other customer segments through Mahindra Finance continues to We have over the years accumulated its branch model. “We will therefore have develop its tech infrastructure first-hand knowledge and insights about a ‘phygital’ strategy where the physical and with new age digital systems customers in rural India, based on key digital models will co-exist and complement like blockchain, AI and ML data points ranging from income, payment each other,” says he. behaviors, to socio-economic trends and Iyer says the company has been serving aspirations. Such data backed by powerful the un-banked and new-to credit population Iyer is conscious about the analytics has enabled us to further scale in semi-urban and rural India, is present in unprecedented change that is happening and digitize the business model to drive every Indian state, and its 1300 + branch in the Indian heartland, both socially and customer engagement and design solutions network covers 85% of districts nationwide. economically and maintains that improved customized to the needs of this unique set,” It has served 6.6 million customers spread communications - especially, mobile and says he. over 370,000 villages – that’s more than internet - reduced transportation costs, The company, he points out, as it one in 2 villages in the country. changing trade patterns for commodities continues to expand our geographic reach and the emergence of important non-farm and scale of operations, continue to develop 4-PILLAR-STRATEGY activities in rural regions have combined its technology architecture with new age “Our customer-centric financial inclusion to present rural India with a new set technologies such as blockchain, artificial model focuses on 4 pillars – easy access to of challenges as well as opportunities. intelligence and machine learning to credit for livelihood, insurance, housing Traditional farming communities, he support this growth. and investment solutions. We believe that says, are increasingly complementing the latent demand for financial services in their activities with off-farm employment MIXING MATURE TECH the country is huge and we are uniquely and exposure to the global environment Gururaj Rao, the company’s CIO, explains placed to cater to the same,” says he. with improved communications is further that the IT architecture and strategy adopted

26 Banking Frontiers February 2020 Gururaj Rao Rohit Pandharkar Tina Singh by the company, enables it to leverage both about customers like how far is his house rating on the Google Playstore. The iPhone early stage and mature technologies. “In the from our branch and how many dependents version of the app is ready to be launched past, we have been early adopters of open are there in his or her family etc. Such data in a month’s time,” says she. source solutions, POS devices, etc, and in points prove to be useful in predicting She reveals that the company, in order recent times, we have been enterprise level customer behavior patterns and quality of to keep pace with the increasing penetration adopters of platforms such Data Lake, lending. These micro-data points about of digital payments, has introduced Quick MADP, MDM, AI/ML, ESB and blockchain. our customers are our assets and help us in Pay, a feature that enables customers to pay These have helped us in our data analysis, building advanced machine learning models their EMIs via UPI, debit cards, internet customer centric channels and information that could be leveraged for better operations.” banking or wallets. This feature is available security,” says he. both on the website as well as the customer He maintains that the organization has MIXING PLATFORMS app. This channel fetches over `1.8 billion matured from being a stand-alone, offline, Tina Singh, chief digital officer at Mahindra of collections every month for the business, controls-oriented model to a customer- Finance underscores the point that the growing at the rate of ~15% mom. centric one participating in an ecosystem, company has successfully integrated various “We have also come out with a ‘Paperless with real-time, online processes. “Our complex systems with new-age secure and App’ as part of our continuous focus on employees have moved from an office scalable mobile platforms to build fully improving productivity in our operations oriented automation to a field-level BYOD- digital channels for its customers and and empowering our employees. The app based set of solutions. Customers, partners employees. It has revamped its customer has enabled our field executives to process and other stakeholders are able to benefit app ‘Mahindra Finance’, making it more applications, approvals and sanctions of through quick and convenient transactions scalable with multilingual capabilities, loans online. It provides instant CIBIL and experiences,” he says. enabling faster onboarding and easier score and address verification along login for the customer, while seamless with faster approvals, thereby, reducing MICRO-DATAPOINTS integration with core systems and payment disbursement TAT. I believe this is the most How is the company able to capture micro- gateway, facilitates quick look-up on comprehensive customer acquisition app data points about its customers and how pending EMIs and simplified repayments. for any NBFC in India,” says Singh. has this helped in building a successful “Mahindra Finance app has over 100,000 business? downloads within just 4 months of launch. BHARATMAPS Rohit Pandharkar, head of Data Sciences It has seen a staggering growth in the One of the technology-based endeavors of at Mahindra Group, explains: “We capture number of downloads in the last 9 months the company is Bharat-Maps. It has helped data points about customers through various with current downloads crossing over the company in reaching to the hitherto means: formal loan application process, 350,000. With continuous enhancements un-ventured spaces, offer products and digital crumbs/trails through the mobile app and addition of new features in the app, it services and bring in the unbanked into the and post-lending transaction details. This is now one of the best rated apps amongst financial services fold. Rohit Pandharkar means we are able to capture micro details Top 10 NBFCs in India with 4.6/5 customer says Bharat-Maps is a proprietary data

Banking Frontiers February 2020 27 Digitization Efforts

product of the company built for internal use. “It takes into account data points at industry level, company level, branch level and even contract level in every pincode of India and can tell us, how our portfolio is performing by the pincode vis a vis industrial performance both in terms of volume and quality of business. This allows us to easily spot nation-wide whitespaces that have good industry performance. Using this product, we have opened 40+ new branches in recent years.”

ML ENGINE FOR LOANS He reveals the company is currently using A proprietary ML engine for fast track loans, where it can disburse a loan in less than A Mahindra Finance staff member interacting with a rural customer at the latter’s residence 30 minutes. “Our ML engine considers our ‘power of 20’ model where 20 different deep analytics,” says she. across the lifecycle of the relationship. This parameters beyond bureau scores are used The company has been able to totally would also be in multiple languages to to determine the risk of a customer running digitize the customer acquisition process improve the user experience,” he says. into default. In fact, this model can score through the field sales force - starting and lend to a customer with no bureau from prospect capture, credit and viability A TOTAL SOLUTIONS PROVIDER score as well and is a unique highlight of assessment till loan approval, powered by Ramesh Iyer summarizes the journey of the our business model. Using this kind of cloud based infra and services. “Coupled company with the aid of technology stating ML driven lending, we are not only able to with new age data lake platform, we are how from a captive financier of Mahindra win and delight our customers with faster maintaining 24X7 uptime and stability,” utility vehicles in the early 1990, it has service but are also able to collect efficiently, adds Tina Singh. grown to become an offeror of multiple loan since we know their risk-quality at the time products as well as investment solutions in of lending. We segregate the collection USE OF DLT rural and semi-urban markets. Today, it efforts on the basis of risk scores and focus Mahindra Finance has created a vendor offers tractors to non-Mahindra products, our energies on collecting from riskier financing platform using DLT. It is also and has diversified into a financial services customers – thus delivering above average examining other areas to make use of this provider with a whole suite of financial collection levels,” he adds. technology. The company has been among solutions tailored to the needs of the under- The company has created a new data the early adopters of blockchain technology, served customer in under-penetrated rural architecture using which it can achieve and as part of the projects using this, it has markets, says he. spectacular uptime and stability as also developed the vendor financing platform. “Our product portfolio includes utility improved data management capability. “We were the first company in South Asia to vehicle and passenger vehicle finance, Tina Singh this has been the result of use blockchain technology for supply chain tractor finance, commercial vehicle and the company’s vision of becoming ‘One financing. The blockchain has connected construction equipment finance and pre- Customer-One Mahindra Finance’. It our suppliers, OEMs and the financiers and owned vehicle and SME finance. We has therefore built a data lake, which it allows them to share key data securely undertake mutual fund distribution, offer has the capability of storing all the data over the network chain to request and fixed deposits and personal loans tailor- related to the company’s customers. With approve the financing, within the Mahindra made to suit our unique customer segment. implementation of this capability, she says, ecosystem. We further plan to bring on We also offer insurance solutions, housing the company plans to give a personalized other automakers on the same blockchain finance and mutual fund schemes with a experience to the customers through a to have a seamless vendor financing system special focus on rural and semi‑urban areas single Mahindra Finance relationship. “The for all,” says Tina Singh. through our subsidiaries.” data lake platform brings in the features of Gururaj Rao emphasizes that going Needless to say this quantum jump has high performance and scalability, integrated forward mobility would be an integral part been possible with the company realizing search across structured and unstructured of the company’s omni-channel approach the edge that technology can offer and content, machine learning, relationship toward customer service. “Our endeavor is to understanding how best technology management, streaming analytics, provide the customer on the mobile platform, solutions can be appropriately used. integrated development environment for the full range of asset and liability products, [email protected]

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