While analytics cannot help print money faster, use of optimization algorithm can help optimize distribution of the scare resource (new currency) optimally across cash dispensing locations (ATMs, tellers in branches) across all banks such that it reaches the maximum population of India. There is huge disparity in sophistication of BI and analytics across the banking industry.
A recent research report published by Banking Frontiers in association with Accenture, titled Digital Directions & Transformation 2018 delved into analytics needs and opportunities in the BFSI sector.
While the larger banks have taken the lead and setup business intelligence units, the public sector banks, regional rural banks and some of the old private sector banks are still scratching the surface in terms of deploying analytics. In such a scenario, the government can potentially help improve competitiveness of public sector banks by helping develop a ‘Common Minimum Analytics Program’, which defines the standards for the reports, predictive models, optimizations, etc, that need to deployed by each bank to function profitably.
This can help get the banks to expedite their analytics journey. The government could further look at potentially helping these banks jumpstart this process by facilitating a centralized body to create a ‘Common Analytics Platform’ that can be quickly utilized across smaller public sector banks – thus doing away with the typical challenges around capex/skills etc that these banks are likely to face in this journey.
The report is available at https://www.payumoney.com/webfronts/#/index/Bankingfrontiers