Vol. 19 No. 4 August 2020 `75 Pages 48 U GRO Capital pg 8 Bank of Maharashtra pg 27 SwissRe pg 30 Cosmos Bank pg 38 www.bankingfrontiers.com www.bankingfrontiers.live From SECURITY TRUSTto TRUST SECURITY Nagaraj Solkar Manish Pal Agnelo Dsouza Sridhara Sidhu PRESENTS MASTERCLASS CYBER INSURANCE - Demystifying the BLACK BOX DATE: 5th of September 2020 FACT SHEET `2.5cr siphoned off from Mumbai banks to phishing mails to steal credentials ___________________________ 900 Million ` Cyber attack on Cosmos bank Digitalization has entered all facets of our lives and Indian corporations ___________________________ are adopting technology in all their operations at lightning speed. However as they say everything comes with a price. In the case of 15 Billion technology, it is the fear of online data theft and other such cybercrimes. 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NAPPINAI ANUP DHINGRA Chief Risk Officer, Partner - investiga- CEO, Genlife- Supreme Court MD - FINPRO® & Private Reliance Nippon tions, Deloitte Re Insurtech Advocate and founder Equity M&A - Marsh India Life Insurance of Cyber Saathi www.bankingfrontiers.com Editor’s Blog N. Mohan Mobile : 9322895820 Email : [email protected] August 2020 - Vol. 19 No. 4 Newer roles for bank branches Group Publisher : Babu Nair everal banking experts feel what the banking industry had planned for say 5 years from now in terms of operations may have to be implemented just right now, Group Editor : Manoj Agrawal Sfor the pandemic has changed the way banking is done. For the moment it is Editor : N. Mohan an interregnum before banks wanting to survive would be required to get into action and put the new normal in practice. One indication of the things to come is the extent to which banking services could be delivered from anywhere even as the pandemic Editorial raged across the globe. Some U.S. banks have claimed that nearly 100% of their staff Mehul Dani, Ravi Lalwani, V. Raghuraman is working remotely and yet providing the services in the most effective manner. And Research Editors these banks would prefer to continue doing so when the situation gets to normal. It V. Babu, Ratnakar Deole, is natural that banks would leverage the learnings from the current crisis to evolve a W.A. Wijewardena, Sanchit Gogia, long-term strategy and identify the functions that can be delivered effectively from K.C. Shashidhar, Dr L.S. Subramanian, outside office premises. Ajay Kumar One aspect that would be interesting to follow will be the shape that branch banking will take. It has been abundantly demonstrated during the pandemic that branches Advisor-Alliances are almost irrelevant and at least retail banking could do without them operating fully. Ateeq Siddique Experiments in branchless banking, banks closing down branches for economy, the Marketing digital claiming space over the physical have all been indications that branches may Kailash Purohit, Apoorva Lawangare, soon become scarcer if not a matter of legacy. Dhiraj Mestry Maybe when the virus is contained, Events & Operations there could be some increase in Gautam Magare, Shirish Joshi, the footfall at the branches, but Stalin Saldhana, Pramod Jadhav, future branches may not retain Amit Gupta, Shweta Kadam, the brick and mortar structure. Ashish Verma, Wilhelm Singh, At best, branches could be a Sneha Agrawal destination only for detailed information and definitely not for Design transactions of any kind. It may Somnath Roy Choudhury gain the shape of a tech lobby Published By where even complex issues of Glocal Strategies & Services the customers, which hitherto used to be redressed by a human, will be handled by D-312, Twin Arcade, Military Road, Marol, machines, physical interactions and customer care will be through digital terminals Andheri (E), Mumbai 400059, India. within private areas and humans will have the role of trouble-shooters. Such a structure Tel: +91-22-29250166 / 29255569 will support customers anytime, anywhere. Besides, since customers could do most of Fax: +91-22-29207563 the things digitally during the pandemic, there will be a rethink on their part on visiting branches post-pandemic. This changes the role of customer-facing employees to that of focusing on more complex activities that require the added value of human intervention and get trained Printed & Published by Babu Nair on in new and complex skills as banking is tending to become more technology-oriented behalf of Glocal Strategies & Services and and complex. Printed at Indigo Presss (India) Pvt Ltd., Plot No. 1C/716, Off Dadoji Konddeo Cross Some experts even predict the evolution of ‘white label’ branches where, staff, Road, Between Sussex and Retiwala Indl. space, technology and processes can be shared by various banks or even non-bank Estate, Byculla (E), Mumbai 400027. organizations, which can be a high-income generating model. Perhaps thinking aloud, these centers could well be community centers where there could be coffee shops, Editor: Manoj Agrawal (Responsible for information hubs, and other activity generating points alongside bank branches. What selection of news under PRB Act) is interesting is that technology to make such a concept a reality is already in existence. When driverless cars can become a reality, why not branchless banks? Banking Frontiers August 2020 3 N E W S Regulator Bank of England plans revamp of payments system Bank of Korea plans The Bank of England said it is proposing to overhaul part of the country’s digital innovation unit payments infrastructure. The central bank has hired IT consulting company Accenture for the purpose in a contract worth up to 150 million pounds. The bank’s Executive Director Victoria Cleland said the proposed overhaul is a key priority not just for the Bank but also the wider UK payments industry, adding it is expected to support a resilient financial system that protects the UK’s financial and monetary stability in the years to come. The plan includes overhauling The Bank of Korea is setting up a RTGS, which handles 685 billion pounds a day in payments between large financial ‘digital innovation department’ as part institutions. The new infrastructure, the bank expects, will be in place by 2022. The of organizational reforms in the second bank is also weighing the feasibility of making the new RTGS compatible with the half of this year. The central bank plans proposed Central Bank Digital Currency (CBDC). to introduce a number of different technologies like artificial intelligence and Bank of Japan fast-tracks work on CBDC blockchain, through the new department. The Bank of Japan will begin substantive testing of digital currency it plans to issue The department will also perform tasks such sometime in the future. The bank has set up a team within its Payment and Settlement as implementing new digital technology Systems Department to work on digital currency issues. A spokesperson for the bank policies and expanding the latest digital said consideration of a central bank digital currency (CBDC) will be handled as one of infrastructure. The central bank was the top priority issues within the bank. While no deadline has been fixed for the testing examining possible use of blockchain for to start, the bank is expected to cooperative with private sector enterprises, which have bond market. sound technical knowledge about the issue. The central bank aims to work on the basis that the proposed CBDC would have universal access similar to regular currency, and resiliency to enable the digital currency to be used even during natural disasters Fazle Kabir reappointed and other emergencies. Japan, however, has one of the highest levels of outstanding currency in circulation, at about 20% of its gross domestic product. governor of BB Oman introduces new 50 rial note The Central Bank of Oman has come out with a new 50 rial bank note to mark the 50th anniversary of Oman’s ‘Renaissance’ and in commemoration of the memory of its founder, the late Sultan Qaboos. The RO 50 banknote is sixth in the series, and will begin circulating as legal tender. The central bank is working with local banks teo configure ATMs and CDMs to make them compatible with the new banknotes. The design of the new bank note, among others, features a golden security patch window on the right side depicting the main entrance of the Central Bank of Oman building, with the name CBO mentioned in both Arabic and English. Among the other new security features are a blue- inked window revealed under any light source, a shiny, multi-colored security patch on the left side in the form of the numeral 50, depicting moving elements of colour shifting gradually from green to gold when the banknote is tilted, 3 watermarks on the left side of the banknote, which include a portrait of Sultan Qaboos, and the numeral 50 printed Fazle Kabir has been reappointed as the in Arabic twice; both revealed under any light source.