Tag: hyperpersonalisation

YES Bank CIO, BFSI News, ET BFSI

Banking & Finance

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Automation will become an imperative rather than a good-to-have in the next 2-3 years while hyper-personalisation will see a lot of innovations after six to eight months, according to Mahesh Ramamoorthy, Chief Information Officer, Yes Bank.

If any bank wants to get into new service or product enhancements it will need straight-through processing or zero ops. A lot of learning will come from some of the good fintech companies that have enabled themselves and have dedicated to building the scale at a very low human footprintMahesh Ramamoorthy, Chief Information Officer, YES Bank, at the Fireside Chat during ETBFSI Converge.

Hyper-personalisation

Hyper-personalisation, he said, was at a nascent stage and a lot of banks are on that journey. There are a lot used cases for hyper-personalisation such as if a customer is doing a purchase and wants money, the bank should be able to triage customer location, profile request along with banking risk and give the customer the money. Another use case is the dispute journey where the transaction could be invalid, incorrect leading to reversal. If we could service the customer using automation or give the customer the progress of the dispute giving another self-experience it would be a defining moment, he said

Saving costs

With automation banks can, on one hand, save costs on the other drive the business. It creates more availability for the customer that increases the standing of the bank in the market. Creating efficiencies in the back office leads to more business in the front office, which leads to driving growth of not just accounts but also balances, Ramamoorthy said.

Despite automation, there are instances where manual intervention is needed, such as customer queries where multiple touchpoints are needed to be addressed, the banking could pull in the information but the service would be needed to be done manually.

He said the bank is open to understanding how fintech firms create accelerated journeys, deployments, service enhancement. “We have a huge focus on partnerships. most of the automation that the fintechs have brought to the table especially when thy use latest tools there have been good learnings,” he said.

Automation’s objective is to move to zero ops, with effective means and very minimum manual intervention. identifying critical processes, to create customer experience, efficiency with a sufficient amount of risk control.



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Axis Bank EVP, BFSI News, ET BFSI

Banking & Finance

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Axis Bank‘s digital penetration has risen to over 70-73%, but it does not see a future without bank branches soon.

“It will probably take another one generation shift, for us to you know sort of planning a strategy in which there is sort of absolutely no branches. But yes, goes without saying that the intensity of branch expansion has sort of come down dramatically now from what it used to be,” Avinash Raghavendra, EVP and Head of Information Technology of Axis Bank, said at the fireside chat, with Amol Dethe, editor of ETBFSI, during the three-day event – ETBFSI Converge.

A bank branch is more like an engagement hub, where customers can come and if they have some essential queries.

“We have 4,500 plus branches and this presence and the reach actually gives visibility in the customers’ mind which any other medium or advertisement will probably not be able to do perform. Somebody taking a home loan would preferably like to deal with an entity whom they have seen. There is a new age of customers millennial customers who are thinking very differently about it, that is where all the digital property is coming into the picture,” he said.

Digital shift

5,000 sq ft to 5 inch is definitely happening, he said, adding, “If you are talking about an inflexion point in 5-6 years people will rarely visit branches. The new next generation will not like to walk into any of the branches.”

Most of the bank’s fixed deposit openings, over 70% of savings bank account openings are coming from digital channels.

“This shift has happened some years back. I mean as far as doing your fund transfer and doing your transaction kind of a thing that shift has also happened,” he said. Right now, the bank is focusing on some of the servicing issues for a lot of customers who used to come to the branch for as basic as updating Aadhar or change of address.”Avinash Raghavendra, EVP and Head of Information Technology of Axis Bank

The only customers these days who are mostly visiting the branches is someone with a locker service because that is a physical kind of a property.

On apps

Axis Bank app has a ‘Do It Yourself’ kind of a feature that allows for 250 plus transactions. “So that’s a very large number, and given the fact that our digital customer base is 73% plus, these customers are seeing traction when it comes to whatever we enable for them on the mobility side,” he said.

Credit card and debit card usage rules, which now RBI has also sort of mandated, have been incorporated inside the app, he said.

The bank engages with UIUH experts and internally has a UX team that does a lot of work.

“We do take a lot of feedback from customers in terms of what features they want. What we have seen there is 20% of features that is used by 80% of customers, so these services should be easily made available to the customers. We are also trying to come with as much of personalisation. Like reminder for FD maturity, basically, providing some sort of intelligent nudges, instead of getting them searching got those particular options,” he said.

On the super app, he said, there is very little that we are not offering in the app at the moment. “Super app is mainly for conglomerates who are doing different kinds of thing. As we are going more and more digital it is actually shaping a personal advisory kind of a function,” Raghavendra said.



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SBI MD Tiwari, BFSI News, ET BFSI

Banking & Finance

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Hyperpersonalisation is a journey that all financial instituitions must make because the pandemic-induced digital transformation has led to customers being more inclined towards digital solutions that help customise choices, said Ashwini Kumar Tiwari, managing director of State Bank of India.

Banks no longer offer same products and services and have already progressed from mass banking to a segmented approach. The market is moving towards the power of one, which means that each customer has to be treated separately, and the products and services need to be customized based on their preferences, said Tiwari, at the second edition of ET BFSI Converge.

“Nobody today wants to get 100 messages from multiple banks or from even one bank. It has to be a very relevant message and it should be in line with the preferred channel, time, and type of product which could differ for every customer. This is where the conversation is moving and I’m sure within couple of years, most banks will be there because there is no other way. A customer would simply go where they find their own voice being heard and their own preferences being looked at” he said.

Imagination of bankers, the only limiting factor

N Kamakodi, managing director and chief executive officer of City Union Bank, also feels that in term of mass banking, banks have slowly started moving towards some personalisation, but the degree raises the question that at what point it can be called hyperpersonalisation, since the process is open ended and expectations are neverending.

No option for banks, hyperpersonalisation the way forward: SBI MD Tiwari

“The transaction part has already come together with CRM solutions for most banks, the banks are able to see what the customers already have availed and what possibilities could be there. We are already at a stage where digital is letting almost everything happen via mobile banking apps, it is only the imagination of us bankers, which is becoming the limiting factor,” he said.

Top most priority – data privacy and security

Highlighting the importance of APIs, Kaushik Shapria, CEO of Deustche Bank India, talks about how banks need to be connected not only to their customers, but also to the value chain of their customers, which will in turn make the switch more seamless besides providing a better experience and fulfilling needs. However, he also addresses his concerns around too much digitalization and talks about data privacy and data security.

No option for banks, hyperpersonalisation the way forward: SBI MD Tiwari

“In a regulatory environment there are security issues, which are important because banks are also offering trust and comfort of security. This is actually a much hidden but very important service we offer to our clients. Bank should not rush into it blindly because we see too often that under the pretext of ease of working, many of our plans get swindled by fraudsters.”

Ajay Kamwal, MD & CEO of Jana Small Finance Bank, is of a strong opinion that hyperpersonalisation by design will force banks to tie up into alliances with other banks, NBFCs, even large e commerce platforms. The journey will then depend on how well these institutions work with each other while maintaining the regulatory disciplines.

No option for banks, hyperpersonalisation the way forward: SBI MD Tiwari

“For instance, customers don’t like logging into three different banks to find out the balances. So we collaborate and say listen, I will allow my customers to show their other banks balances and vice versa. It’s also possible that his home loan is not from a bank and probably from a housing company. So then I should be able to show his housing company on the bank’s mobile banking app.”

Hyperpersonalisation for India

With regard to hyperpersonalisation in India, two things become most important – the technology reach and the demographics. It is safe to say that depending on the demographics or the location of the customer that is being served, the hyperpersonalisation ability, and the need for it also differs, said Shailendra Singh, VP-Financial services of IBM – India and South Asia.

No option for banks, hyperpersonalisation the way forward: SBI MD Tiwari

“While talking to our connections in the banking world, we keep discussing that in India you have to create systems which not only caters to India, but it also caters to Bharat which are two different ideas. Going forward, my belief is that from a partnership perspective, it will not be limited to the fintechs which has been happening since a few years, but would extend to partnerships between banks, NBFC’s, retailers including Amazon, Netflix and other platforms,” Singh said.

ET BFSI Converge 2021 is an ongoing event, click here to join.



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