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PSBs need to move towards Banking as a service model
February 03, 2022
Public sector Banks need to increasingly connect or forge partnerships with technology partners and move towards the Banking as a service model/Banking model 4.0 in the next ten years, according to a report by SBI’s economic research development.
This will allow banks to quickly innovate and expand their product and service offerings through a collaborative partner ecosystem.
This could happen by providing easy access to digital lending to SMEs with minimal paperwork, digitizing agriculture lending by bringing in GIS and other data-intensive technology, leveraging best practices of Agri tech will enhance credit absorption capacity, among others, as per the report.
“Green financing will be the focus to promote sustainability goals. Liabilities will be raised through Green Bonds and similar liability raising instruments. Projects having carbon footprints will get into negative finance list,” the report on Union Budget FY23 said.
It emphasized that PSB’s can play an important role in India’s journey towards truly Atmanirbhar by ensuring a simplification of lending process to ensure credit delivery catering to all sections of the population, especially the agriculture and manufacturing sector.
SBI’s ERD team noted that the ecosystem created will mature and enhance the confidence of the leaders to take professional decisions expeditiously.
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