NEW DELHI: Public sector banks (PSBs) are catching up fast with the digital world in the face of constantly evolving forces of consumer behaviour shift, demographics and technology. Nearly 72% of financial transactions of PSBs are now done through digital channels according to a statement from the Ministry of Finance. In FY21, PSBs have collectively disbursed Rs 40,819 crore of fresh personal, home and vehicle loans through leads sourced from digital channels.
“The top 7 PSBs have built analytics capabilities through the setup of dedicated analytics teams and IT infrastructure to proactively offer loans to its customers. Such loan offers were generated using the customer transactions data within the banks. In FY21, Rs 49,777 crore of fresh retail loan disbursements were made by these PSBs based on the credit offer,” the statement added.
On Wednesday, finance minister Nirmala Sitharaman unveiled a roadmap to transform PSBs into “digital-attacker banks” as part of the fourth edition of the EASE (Enhanced Access and Service Excellence) reforms agenda. EASE 4.0 comes in the backdrop of the recently-completed successful merger of 13 PSBs into 5 PSBs.
According to the IBA statement, under EASE 4.0, the theme of new age 24x7 banking with resilient technology has been introduced to ensure uninterrupted availability of banking services by ensuring 24x7 availability of select banking channels, improving the reliability of technology platforms, and aligning internal processes in the PSBs to deliver such services. The overall score of PSBs rose 35% between March-2020 and March-2021, with the average EASE index score improving from 44.2 to 59.7 out of 100. Significant progress is seen across six themes of the Reforms Agenda, the statement added.
72% transactions via digital channels
In FY21, PSBs have collectively disbursed Rs 40,819 crore of fresh personal, home and vehicle loans through leads sourced from such digital channels