State-run banks will set up dedicated verticals for big data and analytics, and integrate all data sources, eyeing a shift to a more data-driven decision-making.
The move follows the government’s directive to lenders to strengthen data-driven, integrated and inclusive banking.
In the next one year, public sector banks will also roll out digital-only products and services, designed for minimum data entry, automated checks, and underwriting for retail customers and micro, small and medium enterprises.
A senior bank executive confirmed the development and said these metrics will be part of the banks’ reform agenda, Enhanced Access and Service Excellence (EASE 5.0).
“Banks will expand the portfolio of end-to-end digitalised banking services and introduce digital banking solutions for value chain financing,” the executive said on condition of anonymity, adding that these initiatives will help lenders strengthen big data capabilities and inculcate a culture of data-driven decision-making.
Lenders will look at developing a single view of legal proceedings related to loan recovery, including integration of loan related information from internal and external data sources, said another bank executive aware of the developments.
Banks will also look to expedite detection and mitigation of frauds using data analytics, including tracking of frauds, with linkages to employee compliance.
Source: Economic Times