Technology is rapidly changing the way businesses operate and is becoming a central aspect of many industries. As technology continues to evolve and disrupt traditional business models, it is becoming increasingly apparent that technology will play a central role in shaping the future of banking and other industries, shares Ashwin Khorana, Chief Information Officer, Ujjivan Small Finance Bank with Shruti Jain of Elets News Network (ENN).
Technology has been a game-changer for the entire BFSI industry, especially in recent times. How is it helping the Small Finance Bank industry in reinventing itself?
Technology has been particularly beneficial for the Small Finance Banks. SFBs are leveraging technology to digitise their operations, making financial services more accessible and convenient for customers. This includes digital account opening, loan applications, loan disbursal, and more. An assisted onboarding journey with minimum paper for CASA & TD was a great start by the SFBs in making the account opening process complete in under 15 minutes. Technology is also helping SFBs to gain insights into customer needs, allowing them to offer products and services in languages understood by the end customers.
How do you see the role of Small Finance Banks in financially empowering Tier 2 and 3 with technology?
SFBs play a crucial role in financially empowering Tier 2 and 3 customers with technology. They have introduced a range of financial services such as savings, credit, insurance, and remittances to the unbanked and underbanked populations in these regions. Today UPI has become the biggest channel and SFBs have ensured through customer training and awareness it’s effective use by the customers at the bottom of the pyramid. SFBs also leverage technology to digitise their operations, making financial services more accessible to customers. Additionally, they offer mobile banking solutions and use technology to tailor their services to meet the specific needs of customers across all tiers.
How is Ujjivan Small Finance Bank leveraging digital adoption to serve the unserved or underserved with a personal touch?
Ujjivan Small Finance Bank is leveraging digital adoption to serve the unserved or underserved with a personal touch. The bank has digitised its operations and offers a robust mobile banking platform. Additionally, we have launched the “Hello Ujjivan” app focussing on our customers in the bottom of the pyramid. We use video, voice as guides and are available in 8 languages to help our customers learn and perform banking services in an independent manner. Ujjivan has a strong network of micro-banking outlets that offer doorstep services to its customers and uses assisted digital platforms to engage with them.
Technology will no longer be the business enabler, but the business itself. Do you agree?
Yes, technology is rapidly changing the way businesses operate and is becoming a central aspect of many industries. As technology continues to evolve and disrupt traditional business models, it is becoming increasingly apparent that technology will play a central role in shaping the future of banking and other industries.
For example, the rise of fintech companies has disrupted the traditional banking model, with many customers now opting for digital- only banks and mobile-based financial services.
Companies that are able to effectively harness the power of technology will have a significant advantage over those that do not.
What are your plans for 2023-24 to move forward?
Some of the key areas we are looking to work on in 2023-24 and beyond will focus on
Quantum computing – It is critical to start now as the time to perform a transaction is reducing and number of checks increasing. Our focus will be in areas of risk management (involving huge amounts of data) and fraud detection (high number of transactions monitored in real time).
Automation – Automated credit models could be used to improve the efficiency and speed of loan decision-making processes. By using automated models, we could quickly assess a customer’s creditworthiness and make loan decisions within a matter of minutes.
5G networks – 5G technology is expected to revolutionise the way we interact with the internet. With 5G, we could expect to see faster data transfer speeds, lower latency, and a better overall user experience.
Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔ www.eletsonline.com/subscription/
