3 Ways SBI Is Transforming Their Branches And Unleashing A Digital Revolution

Technology has soared its wings so elegantly and fused it so strongly under every sector known to mankind today, that there are debates to discuss if technology serves a boon or blessing to mankind. The money scandal that trembled the whole Indian banking sector last year in January 2018, pulled off by the diamantaire Nirav Modi, was the point which embarked the unflinching importance of technology in the banking sector as well.

SBI is looking forward to cut down its costs to increase profitability, by centralising certain processes and mainly, rethinking the whole model of branches. It is planning to do so by surveying its widespread network and deciding what activities and tasks carried out by different branches can be centralised, to promote an efficient result, without hampering their performances.

SBI’s Key Strategies to Increase Profit:

SBI is the biggest Public Sector Bank in India, with a network of over 15,000 branches spread across the lengths and breadths of the country. Consequently, it has the largest workforce among banks. Each year about 30 lakh aspirants sit for the chance of scoring a job in this bank, out of which only 20% are shortlisted for the officer’s post. Complying with the manifold strength it handles and the top-rated bank in India, SBI is looking forward to use this network to its advantage.

It plans to exercise the optimization cost to increase profits and revenues and decides to do so by:

Centralising its branches all around the country

By optimising work processes and eradicating the repetitions of similar strings of work at different branches, SBI is rethinking the whole model of its branches to check what activities can be centralised.

Hire a Consultant

In the bid of optimizing costs, SBI will hire consultants to have a closer look into the bank’s existing processes to identify long-term growth opportunities of the bank, generate strategies for current account acquisition, identify opportunities to improve its RoA and suggest methods to optimize bank balance sheets, among many other goals.

Clearly, these set goals will require a detailed analysis and close check into not only SBI’s internal affairs but all of its existing relations with peer banks and other agents of markets as well.

Incorporating Technology

Lastly, SBI targets to optimize its costs by deploying technology into its banking models. There has been quite some initial insecurity in inviting technology into the banking sector, as an introduction of technology meant a reduction of jobs. A part of public sector bank reform agenda announced in January 2018 said that banking from home and mobile will progressively make brick-and-mortar branch visits redundant.

This can very well be seen today as people no more visit branches to transact or deposit funds, instead achieve the same using mobile applications, web portals and ATM machines. Speaking of SBI though, it believes that by employing technology in the form of digital banking, such as internet banking, mobile banking, integrated applications and phone banking, a huge part of their overhead costs can be optimized and the work can proceed in an effective manner.

SBI being the biggest public sector bank in India, if pulls off this exercise successfully, it’ll sure-hand affect the way other major banks in India operate. With the advent of time, banks too have understood the importance of technology and many of them have started implementing the blockchain technologies and branches of AI into their day to day schemes.

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