Digitization an Absolute Necessity Now

Digitization has been the catch phrase for banks in 2016. Mobile-based payment solutions, blockchain technology, self-service, social mediabased transactions and seamless P2P transactions are on their agenda:

Today, digitization is not a mere option for the banking industry. It is a must for them to be functional, efficient and competitive. Digitization ensures improved customer experience, cuts down costs, brings in cashless transactions and with technology available for processing data in near real-time, they can take data-driven dynamic decisions. Digitization also complements mobile banking, which is now being increasingly adopted.

Digitization affords a cost-saving opportunity for banks. This is mainly possible through automation of servicing and fulfillment processes and migration of front-end activity to digital channels. It is estimated that 40% to 90% cost reductions are possible through careful deployment of work-flow tools and self servicing capabilities for customers and staff. On front-end, savings are possible by converting existing branch activity into digital channels, use of digital tools to augment frontline servicing, which can considerably increase staff productivity and enhancing the customer experience.

Digitization does not mean huge investments or massive changes in operations. In fact, much of the technology required would already be in place in most of the Indian banks. What is needed is to leverage the existing platforms and make investments on the basis of requirements.

TOP OF AGENDA

A study of three Indian banks - a public sector bank, a private bank and a foreign bank - indicates digitization is on the top of the agenda.

“Banks,” says Hardeesh Kumar B., ED at Canara Bank, “should focus on right mix of digital as a whole, mobility, self-service and customer delight, in their different line of operations. In my opinion providing secure banking services digitally to cater to all segment of customers is the need of the hour.”