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Banks step up investment in digital infra

August 10, 2023

Banks step up investment in digital infra
Large and mid-size banks are spending more for enhancing digital capabilities as the current user interface of mobile applications and websites need a revamp with a better human touch, said senior bankers and experts.

State Bank of India chairman Dinesh Khara in a post-earnings press conference said the lender was investing heavily into analytics to acquire customers on the asset side. “Last year, around the March quarter, we had underwritten about ₹20,000-odd crore (of loans through digital channels). This year, we have already underwritten about ₹29,000 crore, so that is the kind of growth we are seeing.”
 
Federal Bank ED Shalini Warrier said banks “absolutely” need to upgrade their user interface and that her bank has already started several initiatives that emphasise humanising banking using advanced technology. “Banks need to use AI more efficiently and ensure that the staff understand the nuances of customer behaviour and respond to it accordingly. We do need to upgrade digital capabilities, customer experience and convenience,” she said, adding that Federal Bank is keen on increasing IT expenditure as a percentage of overall operating expenditure from 5.6% at present to about 8% in the next two-three years.
 
Bank of Baroda MD and CEO Debadatta Chand said the lender is automating all banking processes and will provide any additional funding towards the requirement. Elaborating more on the investments into the digital side, executive director Joydeep Dutta Roy said the lender will be making significant investments both in automation and for improving the digital infrastructure.
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