Physical presence of banks, NBFCs a must; ‘phygital model’ to continue, say industry experts

Banks and non-bank financial companies are attracted to large digital technologies to help make credit decisions and give a faster credit, but make sure the physical presence is still needed, and the figital will continue to move forward.

The question was discussed in length Business today The best banks prizes prizes in Mumbai on February 20 during the console of the panel Banking services. Bridge to Vicsite Bhart 2047A number of veterans of industry – Sunil Mehta, PSB Alliance and Umesh Revankar, Executive Vice President Shiram Finance stressed that the physical presence of Bank or NBFC will always be needed.

“The next stage of acquisition will be when the whole rural and semi-annual urban area, which is fully digitized. And that area will take a long time. So, until that time, the figital banking will be needed, “Mehta said, adding that even a few” support travelers “need to be provided.

“Until we achieve literacy, but also in terms of financial literacy, where customers understand the cyber security and its impact, I think we will have to continue the journey, adding that the public sector has received a large branch network. What makes great confidence in rural and semi-annual urban customers, as they can approach the branch in case of any problem.

However, with more digital banking, bankers will have to diversify the traditional traditional traditional model of deposits and lending to the service model, the Wealth Management Model, the Insurance Advisory Models. “The nature of the services will change, but the physical structure will need the country, and we may have because we have a variety of demographic situation,” Mehta said.

Rear also noted that Sri Ri’s funding, which has 3,000 branches, adds 200 branches each year. “It is still necessary, because there are certain actions, some lending to which physical presence and customer access is needed. When Customer Creates Customer, you should be in a certain kilometer. You cannot be in a distant place and act. You can’t have a unprotected organization, “he said.

Noting that according to the Indian Reserve Bank, almost 30% of bank accounts have a zero balance, he said that it shows that the banking legislation remains low. He also stressed that in addition to the challenge of non-broken customers, there is a subset problem, where customers do not receive a timely service or credit. NBFCs work to bridge this credit gap.

“I was told that about 20% of people do not have proper banking. We need physical surgery to offer that awareness and product. It is important to be a physical presence and a financial partner for a small enterprise, “he said.

However, Reacher noted that the speed of decisions related to the loan over the next four to five years will be much faster using greater use of digital technology.

“All credit delivery, plus another loan delivery activity, will become much better, and NPAs and NPA decision will be much easier to move forward. The credit value has dropped, and it will rather go down, what I believe, “he said.

Mehta also noted that the banks of the public sector have a huge data warehouse, as generations are banking with them. Currently, the trace of customer data using Digital bank channels is now expanding to lenders more information about their transaction data and spends helping to create predictable models.

“This classification of individual expenses gives a lot of date to customize digital lending products, which can be serviced through direct processes. Banks of the public sector are now preparing for it. They have already called for some major technology to adopt. PSBs are going to take advantage of historical data, they accept technology, and this is the area where technology helps, “adding a predicted loans to the future.