Dinesh Khara, Chairman, State Bank of India, provides insightful milestones of the bank’s digital journey:
Digital strategy of the country’s largest lender, State Bank of India (SBI) is on track on its ongoing strategy. Says Khara, Chairman, informs: “SBI is soon going to launch YONO 2.0. A user of YONO 2.0 need not be a customer of SBI.”
YONO 2.0 will be on the lines of Google Pay. All Indians will be able to use services of SBI’s YONO 2.0. In fact, YONO has been SBI’s flagship digital offering and the bank is accelerating digital agenda. 36% of retail asset accounts and 63% of new savings accounts have been opened through YONO in FY22, as per its analyst presentation. YONO, which has 48.3 million registered customers, witnessed almost 10 million average daily logins in Q4 FY22 and have created a significant business value for the bank. In terms of digital lending, the bank disbursed pre-approved personal loans worth Rs64.77 billion through YONO in the same period. 26,000 new digital SB accounts have been opened per day through YONO in the last FY. In recent times, YONO users had encountered problems on different occasions due to technical flaw in the system. Dinesh Khara clarifies: “The bank is in process of revamping its banking application YONO. We will position it as a complete digital bank.”
YONO’s existing customers will be migrated to the new ‘Only YONO’. YONO is proving to be a financial superstore. It has enabled higher cross-sell of JV/subsidiary products. MF sales of Rs15.48 bn have been through YONO, leading to 1.8X growth in mutual fund sales y/y. SBI has sanctioned Krishi agri gold of Rs129.63 billion and sold 1.13 mn personal accident insurance (PAI) policies loans to the tune of Rs129.63 bn. Journey digitization has improved productivity and reduced cost. SBI has rolled out YONO Global in 9 identified foreign offices (FOs) / subsidiaries.
Xpress Credit In Digi Avatar
SBI has just introduced Real Time Xpress Credit (RTXC) on YONO to digitally empower customers and offer additional convenience. The bank’s flagship personal loan product for salaried customers – Xpress Credit has a digital avatar now. Customers can now avail RTXC from the comfort of their homes through YONO – which is going to be 100% paperless and digital. The end-to-end 8 step journey would be easy and instant for the customers.
Under RTXC, central/ state government and defence salaried customers of SBI will no longer be required to visit the branch for availing a personal loan. The credit checks, eligibility, sanction & documentation will now be done digitally in real-time.
Dinesh Khara explains: “We have introduced RTXC loan facility for our eligible salaried customers on YONO. The Xpress Credit product will enable our customers to experience a digital, hassle-free, and paperless loan process. We at SBI constantly endeavour to offer technology-led enhanced digital banking experience to the customers in order to simplify banking.”
The digitalization of Xpress Credit delivery will also help the bank to do away with the need to handle and store enormous paperwork. Eligible customers will now be able to avail personal loans up to Rs3.5 million via YONO SBI, without any paperwork. The end-to-end application to disbursement journey is easy and instantaneous. The paperless loan process will encourage more and more customers to adopt digital banking.
ATM, Card Spends, UPI
SBI has the largest network of 22,266 branches and 65,030 ATMs / ADWMs (Automated Deposit cum Withdrawal Machine) in India with 68,016 BC outlets. The number of customers using internet banking and mobile banking stand at 100 million and 48 million respectively. As per its analyst presentation, SBI has leadership across channels. Its market share in ATMs is 29.79%, followed by debit card spends (27.58%), number of mobile banking transactions (22.90%), mobile banking transaction value (21.80%) and POS terminals (15.15%). It has 198 mn UPI users. SBI has 275.9 mn cards, its debit card transactions are over 1.13 billion and has recorded Rs1.99 trillon spend during FY22. Its Average number of ATM transactions is 12.9 mn per day.
Remittance, SM Presence
SBI is a leading bank in terms of number of followers on social media, with 17.9 million on Facebook and 4.4 mn on Twitter. SBI has formed new tie-ups with fintech and online trade platforms to boost remittance inflow and trade finance business respectively. As per its analyst presentation, SBI is the #1 Remittance Bank, with 25.23% market share in remittances. It has handled 11.8 bn remit transactions in FY22. Its share of alternate channels in its total transactions has increased from 93.2% in FY21 to 95.5% in FY22.