- Colonel Vinod V. ShahGM,GSC Bank

A co-operative bank is a financial entity whichbelongs to its members, who are at the same timethe owners and the customers of their bank. Co-operative banks are often created by personsbelonging to the same local or professionalcommunity or sharing a common interest.

65% to 70% of India resides in Rural areas.Cooperative Banks have maximum reach of thispopulation. Cooperative banks are best suited toleverage IT and give best benefits to the society.

CBS

???

Stand Alone Computer

based banking

Traditional LedgerCore Banking

Beyond CBS

Why do we need to talk of leveraging technology & Digitization??

--Increased competition &Hence Customer retention /acquisition

--Increasing Customer convenience & offering the best

--Increasing Operational efficiency & productivity

--Cost optimization & reduction

--Increasing security for banking transactions

--Leveraging IT will also help in corporate governance due to moretransparency

Need to move from currency based to Non Currency based transactionsbecause--

1. Cost of operation for currency is high. Cost of printing, logisticalchallenges in printing/minting, corruption issues, fake notes, etc.

2. Cost estimates for maintaining currency based operations is aprox 2%of GDP .With e-payments we can save at least 1% OF GDP.

• Social Responsibility

Benefits to the lower strata of the society Benefits to the remote corners of the country

• Responsibility to the Country’s Economy & Organization (Bank)

Services at affordable costs to customers Improve governance, bottom-line and stakeholder rewards, Improved

customer service & Operational Efficiency Retain customer relationships based on the strength of customer

service capability Use business intelligence tools to analyze customer needs and create

new product offerings

RTGS/NEFT Services

CTS

ATMs & Micro ATMs

Credit/Debit Cards and POS machines

Internet Banking

Mobile Banking

SMS Banking

IMPS

E-commerce

UPI/BHIM

Video Banking

IT for Inclusive Business Growth

IT enables banks to manage Treasury and floats well,

Managing Investments ,offer allied products such as

Insurance and Investment products which was earlier

difficult due to complexity of managing large productportfolio. Hence Maximizing profits from other business.

IT for Financial Inclusion

Deployment of Micro ATMs and other channels and

enrollment of BCs , & credit linkage of SHGs. 2.3

million SHGs A/cs are already credit linked.

Other than these ,banks are also deploying other models

like mobile vans, kiosks etc.

IT for increasing financial literacy

IT for customer convenience-

Direct Benefit Transfer (APBS )

Maximizing Customer satisfaction: Banking beyond physicalbranches. Any Where, Anytime Banking’ through new, 24/7/365delivery channels- ATMs, Cash Recyclers, Net & Mobile banking

Use of Loan Processing Software for faster approvals

IT for Minimizing Risks

Leverage technology for risk management: Through tracking ofNPA accts and follow up actions as required.

Use of i-Kissan portal -Prevention of Frauds by online view ofKYC, Land Records etc, banks can prevent/minimizemalpractices and frauds that can happen in advances (Loans)

Use of Risk rating tools like DeDupe.

Use of CIBIL and other rating agencies, and accessing defaulterlist.

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IT for increasing efficiency in Business & Operations

Model-Payment and settlement systems and computerization of the governmentsecurities, money market and foreign exchange operations in the banking sector as awhole

Reducing operation costs, & also increasing efficiency

Product Management: With the use of technology bank can analyze their Customerneeds and match with their Product portfolio and offer best products to match theirneeds. Product diversity is the key tool to reach all segment of the borrowers.

IT as a tool for Preparation of MIS & Data Management

Technology is a boom for generation of MIS and data management as it requiresminimum time and also reduces the chances of human errors

IT for Improving HR ,Administration & Training functions

It can be a great enabler for improving various important functions likeRecruitment, Performance monitoring & appraisals, and Training in banks.

GST is complex for administration purposes and usage of IT based solutions willgo a long way in helping the organizations.

It's not E- retailers alone. Bankers are also celebrating initiatives like'Big Billion Day Sales' every festive season. For, online shopping ofphysical goods in India was aprox $16.07 billion in 2016, andexpected to grow to $52.3 billion by 2022 .

The country's internet population, 213 million as on 2013, is seeing anaddition of five million every month, driven by the rapid growth insmart phones. Most banks are cashing in on this opportunity, as ithelps them earn revenues and in lowering costs.

Every time a card is used online, the issuing bank earns, on anaverage, 1-1.5 per cent of the amount spent. The earnings can behigher, depending on the amount spent and type of card used.

Online transactions also result in cost savings for lenders. Forinstance, instead of using the ATM, if a customer performs an onlinetransaction through his mobile phone or computer, the transactioncost for the bank is nearly halved. The same transaction would costthe bank 10 times more if the customer visits the branch to withdrawcash.

Ever rising customer expectations.

Security and integrity of data-base – Risk management.

Disparate Systems.

Customer retention and life cycle management.

Diseconomies of Scale.

Employee Training & Retention.

Colossal costs – Technology is a monster – Guzzler of Money.

Issues of branch structure, lay out and redeployment of staff.

Redefining of work-flows – front office, back office jobs…

Change in employee role profile and management/supervisory practices.

Technology Up gradation….

Today Technology and Banking cannot be separated, but it requires a lot ofCAPEX and OPEX apart from Technical competent man power. The smallerbanks cannot afford the cost of going beyond CBS Implementation, andproviding other needed Value added Services like the RTGS/NEFT, CTS, DBT,NACH services, etc due to the high costs involved, and hence the customersof these banks would not be able to enjoy these latest banking services.

In order to strengthen the co-operative sector and help all co-operativebanks,& To mitigate these Challenges, so that even smaller banks can offerthe latest banking services to their customers at an affordable cost GSC bankCONCEPTULIZED a “Technology Umbrella” for the first time in the country. Asof today, this is a unique successful implementation in the whole countrywhich is a shining example for the co-operative sector as a whole.

Service LIVE BanksRTGS/NEFT 89

CSGL 54

CTS 85

Insurance 44

ATM 16

APBS 28

IMPS 5

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GSC Bank’s Technology Umbrella

Opened more than 1,05,000 Saving Bank Accountsduring last one year including all milk producers

Issued Rupay Debit Cards to all milk producers

Installed 170 Micro ATMs at PACS Level/Milkcollection centers

All milk payments are credited in milk producersSaving Bank Account

Milk Producers withdraws their money as and whenrequired.

As a result CASA Deposits increased in bank by 7%

October 2016 October 2017

Total Deposit (in Crore)

1524.10 1713.21

CASA Deposit (in Crore)

623.35 802.82

CASA Deposit (in %) 40.89% 46.86%

Total Deposit (Other) 900.75 910.39

• GSC bank organized Behavioural Skill Test of 4441 employees for all DCCBs inGujarat. Tests were carried out Grade wise through a 3rd party , WEB Basedapplication .

• Each test or profile question was developed by industrial psychologist whostudy the competencies that make an employee successful in a specific role.

Skills and traits assessed

work values

18 Personality attributes,

8 Interest areas and

Managerial skill test profiling

◦ Technical

◦ Conceptual

◦ Personal

◦Individual Reports were made after Analysis based on HOWARDGARDNER THEORY & DATA ANALYSIS OF THE RESPONSES .Co-relationof so many parameters for an individual and then analysing to deriveconclusions was possible only by using IT Analysis Tools which otherwise would not have been possible .

Report generated for each individual showing--

Strengths

Immediate training needs

Possible training needs

Counselling Sessions were done by an expert HR person foreach individuals

This has resulted in HIGH MORALE OF ALL EMPLOYEES &HIGHER PRODUCTIVITY

Smart Vault

AN EXAMPLE OF REDEFINING WORK FLOWS

& INCREASING PRODUCTIVITY

CENTRAL PROCESSING CENTER(CPC)

It is a Centralized Processing Center for the purpose of New accountopening and C-KYC Function .A processing center has been establishedat the HO with four persons, with its connectivity to all branches .All thebranches send all new account opening forms along with scan copies ofthe KYC documents of the individual and then CPC processes theapplication .

1)Check the complete form and documents.2) Verify the KYC documents form the competent authorities3)Create new CIF , and also generate Customer Account number in CBS4) Link the CIF & Acct number in CBS5) Upload KYC details in the CKYC Portal of CERSAI & Obtain CKYC Number6) Communicate all details to Branch /customer7)Despatch Welcome Kit along with Chequebook to the Customer’sAddress

GSC BANK & ADC Bank have adopted the above practice

An Example of Leveraging IT – MIS for Product planning

CategoryNo of CA #

Aggregate Value % No % Value

0-500 320 46,987 15% 0%

501-1000 170 134,206 8% 0%

1001-5000 516 1,499,682 24% 1%

5001-10000 319 2,176,097 15% 2%

10001-25000 257 4,042,770 12% 3%

25001-50000 163 5,880,414 8% 5%

50001-100000 152 10,517,823 7% 8%

>100000 253 104,847,180 12% 81%

Total 2150 129,145,159 100% 100%

Average Balance 60,068 Clients to be

focused

Outcome of the review of average balances in Current Accounts

Outcome Introduction of “ Preferred “ Category for clients maintaining > 50K in Current Accts.

Purpose 1. To offer preferred banking facility for HNW clients2. To introduce / promote & increase client engagement 3. To offer market sync product and promote/create “ Brand “

Salient Features of new category – Preferred Current Account

1. Free RTGS/NEFT 2. Free Cheque Book3. Nil return charges for outward cheque4. Free mobile banking,5. Free Internet banking 6. Free SMS for all the transactions & 7. Free email statement available. 8. No MICR/CTS charges 9. Free Platinum Debit Card (*)

Concessional / other VAS (Value-added Services )

1. 25% concession in processing charges relating to retail / business loans and advances availed by account holder.

2. Personalised cheque book will be issued and on the left hand side of the cheque, the words ‘Preferred’ will be printed.

Advantages 1. Bank can offer personalized services to High Networth Clients, thereby increasing engagement with clients, resulting to increase in CA business-Number/Value

2. Getting references for untapped business through HNI clients3. Leveraging entire product mix, to such clients at compelling rates ; so

as to ensure stickiness / loyalty of such influential and profitable clients

Keeping in view of the alarming increase in the cyber-attacks on the Indianfinancial sector and to mitigate the consequences of Cyber-attacks, GSC Bankfurther improved its existing practices to assess its own readiness and put inplace a dedicated team for cyber security.

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Chief Information Security

Officer (CISO/CIO)

Security Management &

Awareness Team

Security Implementation

Team

Security Monitoring &

Incident Management team

Cyber Security Organization

Effective Cyber Security Baseline

Key points that we have kept in mind for effective baseline:

1. Inventory Management of Business IT Assets.

2. Preventing execution of unauthorized software

3. Network Management and Security

4. Patch/Vulnerability & Change Management

5. User Access Control / Management

6. Secure Mail and Messaging Systems.

7. Vendor Risk Management

8. Removable Media

9. User / Employee / Management Awareness

10.Customer Education and Awareness

•Installed 150 KWp Solar Plant with net metering & Grid feed for any extra generation

•Saves Rupees Forty lakhs /annum.

•2 Years Completed

Technology needs to be embedded in the bank’s strategy & has to be integral part of strategic plans

Five Digital forces - Mobility, Cloud ,Social, Analytics& Big data are maturing & organizations must make full use of these by integrating these in transforming the business. This can only be possible by being open & agile.

Organizations need not be hier archival in an age where real time data is available .We need to create Idea sharing networks/organizations and push the Right data Below…

Conclusion