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Informist, Thursday, Feb. 13, 2025

 

 

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--Bank of Baroda MD: e-rupee will revolutionise payments going forward
--CONTEXT: Bank of Baroda MD, CEO Debdatta Chand at IBEX India conference
--Bank of Baroda MD: Unified lending interface to be game-changer for banks
--Bank of Baroda MD: Banks, fintechs must work together to ensure cybersecurity
--Bank of Baroda MD: Need to bring down cost of income of banks using AI
 

 

MUMBAI – Banks need to work at bringing down the cost-to-income ratio by using the development in technology and artificial intelligence models, Debadatta Chand, managing director and chief executive officer of Bank of Baroda, said on Thursday. "I think you need to again slightly figure out how to reduce the cost to income to the banks. Particularly the usage, like suppose I have taken a technology and I am handling a business volume X, and the cost is something, can I make it X plus Y so that my cost goes down," said Chand, who speaking at the IBEX India conference here.

 

Banks and financial technology players need to collaborate in order to evolve as partners to reduce the cost to income, particularly the cost of technology, Chand said. He also said that both the industries need to collaborate to ensure cybersecurity for customers.

 

"I think as partners both operating the system, you as a tech partner, we as a bank, we have to talk about personalised services, omni channel integration, hyper personalisation, data analytics, cyber security integration, which is the next level of usage, and I think all of us need to work to improve that," Chand said.

 

The underwriting processes of banks are turning digital at a fast pace, which has eased the process for employees of the bank, Chand said. "The beautiful part of what is happening in banking typically is, many of the underwriting process we have are getting completely end-to-end digital. Already along with partners we have made the agri credit delivery digital, we are going to do it for MSMEs, and going to do more and more such product to have either end-to-end digital or assisted digital processes," he said.

 

While today there could be doubts in people's mind around the e-rupee, the instrument in going to revolutionise payments going forward, Chand said. "The model that, along with the regulator, banks are working on, is to create the ease of doing transactions that can be far better as compared to any other mode of transaction. And we at Bank of Baroda strongly believe that the central bank digital currency is going to completely revolutionise the entire payment space in terms of how do you make a payment," he said.

The newly introduced unified lending interface will be a gamechanger, Chand said. The Reserve Bank of India's Unified Payments Interface, like digital public infrastructure in the lending space, Unified Lending Interface, has disbursed 750,000 loans aggregating to INR 380 billion since August 2023 in the pilot, Suvendu Pati, chief general manager at the RBI, had said in January.  End

 

Reported by Kabir Shrma and Srijita Bose

Edited by Ashish Shirke

 

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