The New Target For SBI Bank Will Be Digital Delivery Of Retail Loan
As the lockdown was announced many companies were facing working issues. As there was no source of income nobody was ready to take a loan. There was a lot of financial crisis. The only business which was running was e-commerce business and seeing this many businesses and banks decided to also enter into e-commerce.
One of the biggest banks of India SBI has also decided to provide retail loan online to their customers. It will be done by June 2021. SBI is deciding to give more chance to such type of business so it is deciding to scale this business up from its current level, that is 60%.
SBI has decided to increase the strength in its data science department as its current strength is 50 and they are deciding to increase it to 110. This department is responsible for handling the artificial intelligence and Machine Learning. Even in this lockdown period, SBI had the largest amount of pre-approval loans. This all leads were generated through the data science department.
Earlier, SBI used to see the microfinance and financial inclusion as just a way to meet the regular expenditures but after revising the way of approach towards this business now they can see this line of microfinance as a full-fledged line of business. As there are many players in the financial market and to compete with the new players, everybody needs to change their strategy.
As banks are trying to provide loans through online even NBFC’s should grow up from their comfort zone, they need to provide loans to rural areas. As they provide a large exposure to industries and real estate as they have a low risk of not paying back the loan. They should be also looking forward and be ready for co-lending, as many new companies will be entering the market and this point can be a game-changer for everybody.