The role of Information and Technology has always played a significant role in ensuring a relevant existence of every sector from the time it has been realized a matter of disruption. And with the outbreak of Coronavirus and its adversities, role of technology has grown by multiple folds. The banking which wasn’t among the frontline warrior of the virus but no less than that as well, continued to run its operations went through a major digital transformation to serve the everyday financial needs of the people. On the lines of the rising use of technology in redefining Public Sector Banking Elets News Network (ENN) recently interacted with Rajagopal Devara, Principal Secretary, Finance (Reforms), Government of Maharashtra.
Excepts of his Address
Paradigm Shift Across Banking Sector
We see a paradigm shift in the form of digital transformation that one should appreciate. Earlier digitisation was called as computerization and there was great debate those days whether it will affect employment. But today we have realised that computerization or digitisation is the future.
Time to Onboard Tech-Solutions Provider in PSBs
Public Sector Banks (PSBs) play a huge role across the BFSI sector and are gradually embracing a lot of technologies. But it is also important to understand that the paradigm shift we are talking about across the banking sector is internal or external. Do banks change themselves because external forces are compelling themselves to do so?
It is important to note that a lot of operational changes in the banks are carried outside the banks. Various technology solution providers are ensuring these changes.
Banks are not just a medium to transfer money but, in alignment with technology provider companies can help in building customer relationships.
Being a part of the Maharashtra Government, I get several requests suggesting the upgradation in technology usage across Public Sector Banks as it is still perceived that the level of innovations across PSBs are still in the developing stage as comparison to private sector banks.
In government banks, we generally outsource certain tasks while private lenders are ready to accept these tasks and do it themselves.
Also Read: Nirmala Sitharaman reviews merger of public sector lenders
I would suggest the Public sector banks to adapt to new technologies and work at par with private sector banks in terms of new deployments. Nationalised banks should see how they can align with technology providers and onboard new technologies to stay relevant.
Security is Pivotal Too…
Today banking has become realtime. Debiting and crediting money or disbursing of loans are happening in minutes, earlier we spend days in completing these tasks. However, it is important to address the security related challenges also that we witness due to extensive use of technology. Technology is important similarly security is equally significant. I believe that offering realitime banking is necessary but it is also essential to address the safety concerns.
It is critical to keep the precautions and the measures in mind before and after the cyber fraud. Frauds are happening across the world and we can try and identify them and stop its occurrence.
Also Read: RBI drops names of 6 PSBs from Second Schedule of RBI Act
Role of Tech-Driven PSBs in Ensuring the Last Mile Benefit
Unavailability of technology and connectivity emerges as the biggest challenge in extending the public service delivery to the last mile. Public Sector Banks play an important role in ensuring these benefits to the people by helping the government imparting them. We as a part of the government are trying to reach the last mile and impart the benefits to the beneficiaries , however, we face a lot of challenges pertaining to connectivity. In some countries, internet connectivity is declared as the legal rights of the citizen. Such provisions are important and helpful to ensure the seamless delivery of benefits. India being a huge country in size and population-wise makes it difficult to provide internet connectivity for everyone. The Government however is trying to reach every hamlet and house.
