There is also the challenge of improving digital literacy while moving customers to new technologies and protecting systems from cybersecurity incidents, Setty said while addressing FIBAC 2024, a banking summit organised by the Indian Banks’ Association and FICCI.
He said SBI has been able to build resilience into the system. While ensuring this, the country’s largest lender had to ensure better customer experience in the context of legacy systems.
SBI had to reimagine customer experiences and work with some fintech players and software solution providers. Most of them find it difficult to work with major banks as legacy systems need to be integrated with the agile systems they develop, he added.
Referring to technology spending, Setty said there are three types: first, banks spend to comply with regulatory requirements, which are non-negotiable. The second type of spending is to do or win new business. The third is for user or customer experience.
“Most of the time, people are not able to distinguish between what is essential and what is not. That is an important aspect to consider when we talk about productivity. The second aspect has to do with spending on digital transformation. A series of technological upgrades cannot be called transformation,” he added.
Investment in technology should be geared toward creating end-to-end experiences and processes that drive operational efficiency. This is something we need to look at.
“In addition to technology, it is necessary to analyze whether the processes and digital interfaces that have been implemented are helping to manage large volumes of transactions. What kind of redistribution has occurred in the areas where (banking staff) can go out to mobilize customers? Banks have not focused on the redistribution part. While productivity gains, which must come from spending on technology, are considered, it is necessary to analyze the redistribution of data and the demand that increases the business,” he added.
First published: September 5, 2024 | 20:51 IS
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