Retail Banking Transformation in the COVID world

The pandemic has caused seismic shifts across Industries, and Retail Banking is one such sector which has felt the impact of these changes.  India is at an inflection point as banks are transforming paradigms, changing the rules of the game, and creating phygital (merging of physical and digital assets) spaces to ensure customer confidence is intact amidst a host of other business challenges.

Mridu Bhandari from CNBC-TV18 has an engaging discussion with Kusal Roy, Head - Consumer, Private & Business Banking, India, Standard Chartered Bank, Rajesh Kumar, MD & CEO, TransUnion CIBIL, and TR Ramachandran, Group Country Manager, VISA, India & South Asia.  The corporate leaders discussed how they are creating the future that shall be conducive to survive in the aftermath of the pandemic and their current strategies in dealing with the digital transformation, and shifts in consumer behavior across the Retail Banking sector.

Speaking on the transitioning a host of customer-centric processes online in a short span of time, Kusal Roy mentioned that Standard Chartered has been holistically geared at adapting to the new normal, synchronizing resources and devising improvised ways of functioning in the pandemic.  

Talking about the drastic reduction in impulse buying and loan enquiries, Rajesh Kumar commented that on the supply side there has been a change in the lending appetite and on the other hand on the consumer side there has been a reduction in discretionary spends, shifting to need based buying and borrowing.

Ramachandran highlighted the global scenario on credit card spending, citing in the US, economic stimulus packages are causing consumers to repay debt.  Speaking in the context of India, he further added, banks have taken a cautious approach on provisions, given the two phases of loan moratoriums.

Further talking about moratoriums, Kusal Roy emphasized how they have successfully maintained an open communication channel with their customers thereby ensuring debt management efficacy.  

Panelists also threw light on the adoption of digital warfare such as AI, chatbots, machine learning capabilities thus propelling innovation in products and services.  Important aspects of the discussion also included the shift from credit cards to debit cards and its impact on consumer behavior with regards to contactless delivery mechanisms and how banks are building resources to support such demands.   Rajesh also spoke about how CIBIL is deploying data and technology to create solutions such as the new credit vision score for the lending community.

With the bulk of transactions moving to the digital sphere, cybercrimes are on the rise, Ramachandran commented on how VISA is working closely with the Central Bank, FIU and banking clients on preventive strategies to tackle the menace of cyber frauds.

Panelists were optimistic on the revival of the Retail Banking sector in the coming months, as they are seeing an uptake of several variables that will ensure India’s growth story.

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