Chief Technology Officer,
IDFC Bank
IDFC Bank, the newest lender in the country, is looking at an aggressive campaign to get individual depositors and lenders. For this, technological advancement is moving at a record pace. In an exclusive conversation with Elets News Network (ENN), Sanjay Narkar, Chief Technology Officer, IDFC Bank, tells us about the digital journey of the bank
As a CTO of IDFC Bank, how are you trying to ensure a smooth transition in interbanking processes?
We are a young bank. So our challenge is to see that we remain ahead as far as other competitors are concerned and therefore technology plays a major role with digital being our core focus. With infrastructure, we have gone with the Cloud.
How IDFC trying to maintain freshness in the interbanking system?
One major change that we will bring in the days to come is that the IDFC will be the bank that will reach out to its customers rather than the other way around. The focus will be on how branch reaches to its customers and how we become a part of the technology initiatives. We are not opening much of the branches. But our focus is to reach the customer and bring in convenience. There are two main things. One is giving more freedom to operate and second is the choice to operate. Customer actually can reach us and get his services, get his product right there where he is rather than he coming to the branch.
How do you see the significance of e-governance role in such a scenario?
The way in which the transformation is happening, it is very important . E- governance is how we give service with the customer’s convenience that too with a secured architecture. This is what is going to play a major role. With Reserve Bank of India’s framework, we need to define all our governance related workflows, the service assurance is going to be far more important as far as mobility area is concerned. You need to ensure that your mobility is as such that whatever is your target, it is getting completed.
What challenges do you foresee for the banking industry in the next 5-10 years and as a CTO, how do you plan to overcome them?
Foremost challenge is going to be customer’s behaviour management. If you see, today in India, everybody is tech savvy and therefore matching their expectations and giving the convenience which they require in their transactions and at the same time taking care of their financial roadmap is very important. So challenges will be how you get your customer’s stickiness and on top of it how do you offer your services which differentiate it from the others because this particular generation is choosy. They will always have the option. So you have to be on your toes all the time.
Do you think technology will be the ultimate weapon to overcome these challenges?
We need to remember that we are living in the 21st century age where everything is driven by technology. Earlier people have to go to the branch where they were connected to the technology through PCs and laptops but now the range and technology barriers are gone.
How has technology helped the IDFC to stand apart from the traditional bankers in offering a complete package to its MSME’s & Corporates?
From a technology standpoint, it is our firm belief that “Systems should follow processes and not the other way round”. The Misys Solution gave us an advantage to uniquely adapt the solution to our requirements and not restrict us only to the standard out of the box functionalities with restrictions on security, workflow and the usual challenges that a Bank usually faces.
IDFC has a strong legacy in the Infrastructure Lending but has recently made serious headway in the Transaction Banking space especially in Trade Finance & Supply Chain Finance. How has technology helped the bank to stand apart from the traditional bankers in offering a complete package to its MSME’s & Corporates? Customer Linked Finance and cash flow rationalization have always been a priority for all customers whether big or small. With Indian business touching new heights,transaction banking has come to the forefront in the last couple of years.
A common Misys Platform encompassing front to back Trade Finance & Supply Chain finance with capabilities to support cross border helped us get an ideal platform and launchpad.
From a technology standpoint, it is our firm belief that “Systems should follow processes and not the other way round”. The Misys Solution gave us an advantage to uniquely adapt the solution to our requirements and not restrict us only to the standard out of the box functionalities with restrictions on security, workflow and the usual challenges that a Bank usually faces.
Earlier people have to go to the branch where they were connected to the technology through PCs and laptops but now the range and technology barriers are gone
How does IDFC position itself to its corporates with regards to the Technological advantages of its solutions especially in the area of Corporate & Transaction Banking?
IDFC has created a unique bouquet of offerings which brings the entire value chain of a business starting from the dealer, manufacturer & the supplier to the table with a single goal of better Working Capital Utilization. The services may differ for ex-Trade Finance, Cash Management, Supply Chain Finance, Treasury or Lending Services STP has always been the main focus to enable to all our corporate to get a synchronous view of their positions and ability to bank with us round the clock without any manual intervention.
