Pawar Kailas, IT & Digital Product at Pune People’s Coop Bank, spoke on the topic of Digital Transformation at the FCBA 2024 conference at Lucknow. Edited excerpts:
Ten years ago, when a customer used to make a transaction, the cost was 40-50 rupees. In today’s scenario, if we see a digital transaction, in UPI, it costs 1 rupee. In mobile banking, it costs 1 rupee.
A cooperative banker should find out customers who are giving profit and check if they active or inactive. We are giving service to everyone. But we should see the end result, there should be some professionalism as well. Because in technology, a lot of money is going to be spent. So where is this money coming from? We will have to do this with profit only.
Today, if we see the margin of loan and deposit, it has also reduced. While there was a 3-4% spread, now it is 1%. Technology cost is increasing. The technology that we implement today it is becoming old tomorrow. Now, to what extent bankers are going to run after it and from where they are going to bring the technology?
When we bring the technology, implementation takes a year. In next year, there is a little profit, in third year it gets obsolete. This is going to continue. If you want to give service to the banker, then it should come on the sharing model. If IT team is not there in the bank, then the bank should have an umbrella organization.
When RBI comes out with a circular, vendor immediately offers a product…but it is not even tested.
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