India’s Top 500 Value Creators 2023

4 | India’s Top 500 Value Creators 2023 [ EXPERT’S VIEW ] What are some of the key milestones in SBI’s journey as a value creator? Given the long history of SBI there are many important milestones that have created value for stakeholders. Most recent are – banks deep technology adoption and inhouse capability such as SBI YONO, banks strongpresence in government business and government scheme that has ensured its growing liability franchises, podiumpresence in secured stable retail business such as housing loans and end-to-end financial products/offerings through SBI YONO, thus demonstrating Power of One SBI (SBI + Group entities). What key initiatives has SBI taken to enhance operational efficiency and overall productivity in its business operations? In the context of public sector banks, enhancing operational efficiency and productivity entails retiring legacy systems and infusing new technology. In this respect, at the operations level many of our routine operations are now getting automated. Our HR functions, loan processing, KYC and other routine tasks has been moved to system driven processes. Also, we have adopted intelligent Dinesh Khara Chairman SBI automation as strategy wherein as and when deployed workforce retires in mundane task, we move that activity to automation. In term of business intel l igence, we are leveraging Analytics, which churn out actionable insights using our inhouse data, develops early warning indicators for tracking NPAs, monitors footfall in branches, frauds detection etc. Most of this is done using big data and AI algorithms. SBI has floated State Bank Operations Support Services, which is expected to help our Bank reach out to a larger populace and record improved efficiency in sourcing and collection of loans. What specific data-driven and technology-enabled initiatives has SBI implemented to improve its business resilience? The technology journey of SBI is a long story of experimentation with many technologies, collaborations with technology institutes such as IITs and fintechs and inhouse developments and use of cutting-edge AI and ML analytics. The primary motivation for use of any technology has been to excel in use for customers, support bus iness process and increase in business volume. Starting with telephone in 1920, to adoption of punch cards in 1930-1950 and the use of third generation IT systems such as IBM360 in 1960s; the initial thrust to use of technology in banking up till 1970s was to improve the performance of back office. However, after 1970, technology adoption in banking moved to the front office with deployment of ATMs, passbook printing machines etc. By 1996, banks across the world adopted the new operating system technology. The spread of the internet and personal computers pavedway for internet banking in mid-2000s. There is now an increasing dependency between banking bus iness and deve l opmen t s i n i n f o rma t i on technology. Since banks today mainly process and exchange data with their customers, this dependency will be even closer in future. By 2010 widespread use of smart phones, and advancement in computing and storage technology such as the clouds has raised hopes of a paradigm shift in use of technology in banking, particularly through applicationof AI. In India, the technological transformation of banking pioneered by SBI started during First Generation Banking Reforms in 1993. This transformation was enabled by implementat ion of core banking solutions in 2000, fol lowed by deployment of ATM machines and launch of internet banking. By 2009, internet access through mobiles devices outpaced the fixed line connection. In response, banks diverted their attention to financial inclusion through mobile banking. Demonetization gave a further impetus to use of technology in payments domain and banks have invested resources in payment gateways, POS, chip-based ATM/ Credit cards and online platforms for faster loan processing. Today, Indian banks including SBI are in various stages of use of technology. The top ten banks are clearly able to deploy emerging AI technologies on small to medium scale in some or the Dun & Bradstr et