Gururaj Rao Chief Information Officer,
M&M Financial Services Sector
Banking, financial services, and insurance (BFSI) enterprises today are increasingly realising the need to digitise their operations and become a part of an interconnected ecosystem of cross-industry providers to meet the everyday needs of customers. In doing so, the role of telecom and IT is critical. As such, BFSI enterprises are stepping up investments in IT and telecom infrastructure to enhance operational efficiencies and meet customer demands. Leading enterprises in the BFSI industry discuss their IT strategies, current and emerging technology trends, and plans for upgrading their IT infrastructure…
How has telecom and IT helped banks enhance their business performance?
Telecom and IT has evolved in recent years and has benefited the BFSI segment in many ways. These include:
- 24×7 banking facility through online services, ATMs and cards;
- 24×7 customer support services with customer bank account interactive modes, including auto callback facilities;
- Remote service viability through VSAT and satellite-based banking services;
- Interactive voice response (IVRS)-based customer self-services;
- Customer transaction authentication through one-time password;
- Cashless transaction across continents, across banks and across accounts;
- SMS confirmation of transactions;
- Doorstep repayments/collections in cash.
Such services have resulted in many benefits for both the customer and the governing bodies, such as: customer service window; customer satisfaction index; enhanced economy as transactions window is almost 24×7; enhanced security due to cashless transactions; accountability of funds including regulation and control of money laundering and black money.
What are the key enterprise services and solutions adopted by the banking sector?
The key enterprise services adopted by the BFSI segment include:
- Line of business systems such as core banking systems, loan origination and management systems, customer relationship management systems, and BPM systems.
- Online account management for customers through web services.
- Virtual private network (VPN) and multiprotocol label switching (MPLS) services to connect branches across country/continents and enabled connect with core banking solutions, ATMs and kiosks.
- E-mail services for transaction confirmation, statement of account.
- Mobile-based customer identification and OTP services through mobiles for secure transactions.
- Mobile application-based bank account transaction services.
- SMS facility for customer confirmation and interactive customer services including ATM card-less bank transactions.
- VSAT/Satcom-based remote bank branch communication.
What is your company’s telecom and IT blueprint? What new IT initiatives has the company taken recently and what were its benefits?
Mahindra Financial Services uses: MPLS and VPN services for branch connectivity; SMS confirmation for customer transactions; call centre including IRVS-based self-services for customers; internet-based transactions for mutual fund and insurance purchases; online transactions for insurance payments and purchase of mutual funds; online customer credit-worthiness check; GSM-based interactive customer receipt systems using handheld devices and tablets; vehicle tracking systems and online yard management for hypothecated vehicles.
What are the challenges faced in implementing new technologies?
The plethora of service options and ever-expanding possibilities always pose a challenge regarding what to choose and adopt for the organisation so that it is optimal from a business and customer service enhancement perspective. Further, being a financial services organisation involved in catering to the rural segment, one of the major challenges is connectivity and availability of bandwidth, especially for implementation in remote and fringe areas. Moreover, adopting new technologies includes challenges with respect to educating employees and customers alike. Vendor risks, technology obsolescence, etc. also need to be mitigated. In addition, information security and customers’ confidentiality are key factors that need to be considered while implementing new technologies.
What are the company’s plans for upgrading its telecom and IT infrastructure?
Adopting the latest technologies has been an integral part of our strategy. Some of the key technologies we have adopted are: leveraging the mobility platform for straight through, real-time processing; leveraging cloud and big data technologies; social media for customer interaction and communication; enhancing bandwidth and optimally using telecom resources; educating employees and customers to be armed with the latest technologies from an end-user perspective.
What are the emerging IT and telecom trends for BFSI players?
Some of the emerging trends for BFSI players include the adoption of internet of things applications where applicable, cloud-based service provisioning for enterprise applications and services, and move towards cashless and card-less money.
