As responsibilities of the banks are rising they sought to establish their stand as an efficient fintech. It means that the financial facilities of the people should reach the public by the means of technology through digital platforms. There are also non-bank institutions whose customers have diverse needs.
Digital Delivery of loans: SBI has come up with a new innovation, which provides digital delivery of all retail loans from June 2021. I was also mentioned that the Non-Banking finance companies (NBFCs) to bring down their collection costs for pooled loans as then more people will be able to access it. They have to strive beyond just having a lending industry and commercial real-estates.
Increase in data science professionals: SBI has been organizing itself to prove its efficiency in terms of lending. Currently, there are 50 professionals in the data sciences, the goal of SBI is to make it reach 110. There is a specialized department that works on artificial intelligence(AI) and machine learning capacities of the bank. It was possible with the help of this department to identify their leads in the retail lending segment.
Microfinancing: A new approach has been taken on microfinance and financial inclusion. Focus on microfinancing is important in a country like India, where people are from diverse backgrounds and needs financial aids. Therefore, 8,000 Branches will be set up for the rural and semi-urban regions. The banks are striving to increase their reliability in terms of services and the way they engage with the clients.
In the outbreak of the pandemic, it can be seen that the digital platforms have efficiently improved to be best suited to the needs of the customers. It is observed that the period from April-June has seen large numbers of pre-approved loans. These loans have purely been generated on the AI/ML platform. The extend of the loans availed can be seen in the statistics which showed that SBI had granted 1.7 million pre-approved loans, this number occurred during a 12 month-trail period.