WEWECHATCHAT IN COLLABORATION WITH - MRS. SUSMITHA JOSHI - WELINGKAR ELEARN PORTAL
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
YEAR 2021 | ISSUE 114
MRS. SUSMITHA JOSHI
Regional Sales Manager
(Deputy Vice President)
INDUSIND BANK LTD.
WeChat
In collaboration with
MESSAGE FROM THE DIRECTOR
Dear Readers,
It gives me great pride to introduce
SAMVAD’s edition every month. Our
SAMVAD team’s efforts seem to be paying
off and our readers seem to be hooked
onto our magazine. At WeSchool we try to
acquire as much knowledge as we can and
we try and share it with everyone. Prof. Dr. Uday Salunkhe
Group Director
As we begin a new journey with 2021, I sincerely hope that SAMVAD will
reach new heights with the unmatched enthusiasm and talent of the
entire team.
Here at WeSchool, we believe in the concept of AAA: Acquire Apply and
Assimilate. The knowledge that you have acquired over the last couple of
months will be applied somewhere down the line. When you carry out a
process repeatedly it becomes ingrained in you and eventually tends to
come out effortlessly. This is when you have really assimilated all the
knowledge that you have gathered.
At WeSchool, we aspire to be the best and to be unique, and we expect
nothing but the extraordinary from all those who join our college. From
the point of view of our magazine, we look forward to having more
readers and having more contributions from our new readers.
SAMVAD is a platform to share and acquire knowledge and develop
ourselves into integrative managers. It is our earnest desire to
disseminate our knowledge and experience with not only WeSchool
students but also the society at large.
Prof. Dr. Uday Salunkhe,
Group Director
ABOUT US
ABOUT US
OUR VISION
“To nurture thought leaders and practitioners through inventive
education”
CORE VALUES
Breakthrough Thinking and Breakthrough Execution
Result Oriented, Process Driven Work Ethic
We Link and Care
Passion
“The illiterate of this century will not be those who cannot read and
write, but those who cannot learn, unlearn and relearn.” -Alvin Toffler
At WeSchool, we are deeply inspired by the words of this great
American writer and futurist. Undoubtedly, being convinced of the need
for a radical change in management education, we decided to tread the
path that leads to corporate revolution.
Emerging unarticulated needs and realities require a new approach
both in terms of thought as well as action. Cross-disciplinary learning,
discovering, scrutinizing, prototyping, learning to create and destroy the
mind’s eye needs to be nurtured and differently so.
WeSchool has chosen the ‘design thinking’ approach towards
management education. All our efforts and manifestations, as a result,
stem from the integration of design thinking into management
education. We dream to create an environment conducive to
experiential learning.
FROM THE EDITOR’S DESK Dear Readers, Welcome to the 114th Issue of SAMVAD! SAMVAD is a platform for “Inspiring Futuristic Ideas” and we constantly strive to provide articles that are thought-provoking and that add value to your management education. We have an audacious goal of becoming one of the most coveted business magazines for B-school students across the country. To help this dream become a reality we invite articles from all the domains of management giving a holistic view and bridge the gap between industry veterans and students through our WeChat section. In this issue of SAMVAD, we bring to you half a dozen articles focusing on 'BFSI' with a new sections of 'WeAchievers' and 'Talk of the town'. Also, this is the first issue in the history of Samvad when we are collaborating with the Industry Experts through our section of 'WeCoab.' We are thankful to Finquest Institute for their support throughout the publication of this edition. Yes, we have often heard the term BFSI(Banking, Financial Services, and Insurance). But, since 2020, this industry is in for a radical transformation. With the ability to pay digitally, the rise of Neobanksand big tech has transformed the industry. Today, we’re witnessing trends in finance and banking, starting from AI and Blockchain-powered financial services to omnichannel banking that are concentrating on revolutionizing the BFSI sector. It is done by keeping the customers at the heart of both the present and future tactics. This issue of Samvad brings out the best of writers from the BFSI industry to throw light on new trends. Hope you have a great time reading SAMVAD! Let's read, share and grow with us! Best Wishes, Team SAMVAD.
INDEX
WeChat 1
WeCollab 6
Talk Of The Town 9
Challenges in Remote Workplace 11
Recovery of Insurance Sector 14
Rise of Digital only Banks 19
Role of Marketing in BFSI 22
Digital Learning in BFSI 25
WeAchievers 30
Call For Articles 31
Team Samvad 32
WeChat
MRS. SUSMITHA JOSHI
Regional Sales Manager
(Deputy Vice President)
INDUSIND BANK LTD.
I also got the opportunity to be
1. Could you please take us through
present physically during the
your journey from being a
committee presentations. During my
Welingkarite to date?
term at ICICI Bank, I worked in
Bangalore and Pune which enriched
I was placed with ICICI Bank, being
my perspective of customers in
among the first set of students that
different cities. Later, I got an
got placed, I was super excited and
opportunity to work for a
relieved at the same time. My stint at
multinational bank, HSBC, in
ICICI bank was of 3.5 years where I was
Bangalore. My stint was for 1.5 years in
part of the Cluster Banking Group –
a similar profile. And currently, I'm
Emerging Clusters, a team that
working with IndusInd Bank,
focused on SME lending. My primary
Bangalore, where I am in a team
responsibility was facilitating
management role in Portfolio and
educational institutions through
Sales to SMEs. This is my 10th year at
financing. My role included varied
IndusInd Bank. My journey has been a
facets of the selling process, including
rollercoaster ride with highs and lows,
customer meetings, and networking
but one thing that always went higher
with consultants for referral business.
was the learning through these 14+
The role involved self-lead generation
years.
through cold calls on the list of
prospects identified from various 2. How banking and financial
sources and travel across Bangalore services are benefitting Indian
and Karnataka. My major learnings small-medium enterprises?
were during the initial period with
ICICI Bank- from business email Every bank has a specific team to
etiquette, CMA Data, improving cater to the requirements of small-
financial knowledge, to making medium enterprises, and the products
proposals and presenting cases to the and policies are designed on the basis
approving committee comprising of of the risk appetite of the banks. While
senior management. I was lucky to be funding an SME, meeting with the
exposed to all this, and this was promoter is a key requirement and if
possible only because of my we find creditworthy promoters, the
immediate manager. first test is passed. Rest depends on
the financials and the collateral
provided.
1
WeChat
Funding by banks help the SMEs with This loan is for a tenor of 48 months
expansion in terms of adding new and has a moratorium of 12 months.
offices, moving from rental premises After the second wave, under
to self-owned premises, venturing into restructuring of loans, there is an
exports, working capital ease, delay in additional 10% loan provided to the
receivables - to meet the gap, adding SME with an extension of tenor to 60
new products which in turn help in months and 24 months of the
improving their bottom line. moratorium period. Also, interest
subvention is provided to SMEs into
Recently, during the pandemic, RBI exports.
has come up with Emergency Credit
Line Guarantee Scheme (ECLGS). As
per the scheme, the customer is 3. What is your take on Zero MDR
eligible for 20 % of the loan (Merchant Discount Rate) policy?
outstanding as of 28th Feb 2020 as an How is this policy affecting the
additional facility, which has no banks as well as the digital
processing fees and no prepayment payment industry?
charges.
2
WeChat
MDR is the rate at which the banks However, reimbursement was
offer the payment gateway to suddenly stopped and prompted
merchants. The payment financial banks to go back to older regimes.
cycle constitutes of a merchant, Moreover, a decision to make RuPay
acquiring bank, network, issuer and have a Zero MDR without detailed
customer. MDR is paid by the consultation with the Baking Industry
merchant to the acquiring bank, prompted banks to stop issuing RuPay
acquiring bank passes this on to the cards.
network, and the network gives this to The question arises, why is Zero MDR
the issuer. Once it reaches the issuer, being promoted? One of the objectives
this income is called interchange. It is of the government is to drive digital
the income to the issuer for his payments.
customer to transact on that However, when it comes to digital
merchant. The issuer usually uses this payments, banks play a more
income for offers, discounts, etc. and, significant role than merchants. To
the rest pockets it for expenses. sustain the drive in digital payments,
MDR becoming zero means there is no income is very important to banks. If
income to anyone in between. The banks don’t have the income, they will
only one who hails is the merchant. not spend on issuers to drive
The government may push this to payments through cards and a good
benefit small merchants who population will then move back to
constitute a large number in the buying from cash at local grocery
country. On the other hand, banks will stores, electronics for cash discounts
oppose as it takes away their income. without GST bills, etc.
Banks are opposing this for quite some
time. To find a mid-way, the 4. With services like YONO (by SBI)
government from 2018-2020 launched and RazorPay the concept of Neo
a scheme of MDR reimbursement for Banking is becoming popular. Do
debit cards to banks if banks reduce you think Neo Banking is reliable?
MDR. Banks agreed and reduced MDR. Do you support digitized banks?
3
WeChat
Neo banking is reliable only for certain The pandemic has increased the
banking products. E.g., bill payments, claims as the death rate was high
shopping, EMI, tax payments, vendor across the globe. Yes, insurance
payments, FD-backed loans, lending companies took protective steps to
requirements if it meets the standard issue the term plan policies like
policy and guidelines of the bank, etc., mandated vaccination for age above
and not for all products like lending 45 years and also made medical tests
with deviations. In lending, human mandatory before issuing any
intervention is required as the coverage and policies. The guidelines
requirement of each small-medium are made more stringent, there were
enterprise or corporate varies, and counter offers provided earlier, now
with the digital platform, this cannot the companies do not take any
be fulfilled. deviations. The sector has become
Yes, I do support digitized banks. But more stringent for low sum assured
as mentioned, it would be helpful for between Rs 50 lakhs to Rs 100 lakhs.
certain products and not for all the For anybody who has been tested
products. Covid positive, the waiting period to
issue a term plan is made 30 days to
5. Could you elucidate the impact of 90 days from the date of diagnosis and
COVID – 19 on the insurance sector Covid negative and chest x-ray is
and how the insurance companies mandatory which was earlier not part
have tackled the sudden spurt of of any medical test for these cases.
protection demand and claim
settlement? 6. What challenges did BFSI as a
sector face during Covid 19? How
did it overcome them?
4
WeChat
Banking, being an essential sector, was
7. What’s your advice for the young
working throughout the pandemic.
professionals who would be
The sector faced many challenges. The
starting their careers soon?
first being reduced income for the
banks as the number of transactions
reduced. But the goals of the banks
There is a lot of difference between
did not change. We had to increase
what we learn at college and at work.
income from various streams. Banks
Do not forget to apply what you have
decided various ways to increase by
learned. Most of us do not apply and
giving better rates on FD, increasing
work with the flow at the workplace.
the Savings accounts, current
People who succeed are the people
accounts (liability business)
who apply what they have learned at
management school.
Covid brought various loans like
Be passionate about your work. Time
ECLGS and banks had to work the
management is crucial and one of the
facility for every customer. Banks had
most essential parts of your work is to
to speak to every customer to
manage it. Prioritize your work.
understand the business health of the
Build your own professional network
customer and check if they were able
and develop strong relationships –
to pay their interest/EMIs on time.
outside and within your organization.
Many accounts moved into stress. We
This will help you in whatever you do.
had to reduce the facilities extended
Respect your seniors at work and learn
of the customers wherever required;
as much as possible from them.
hence we had to convert the loans to
Always ask questions! Do not hold
Working Capital Term Loans (WCTL).
back. All the best and I am sure you all
will do well.
5BFSI industry: Trends, Analytics and Careers
AMEYA ABHYANKAR
WeCollab CFA, CQF
Founder, FinQuest
Institute
Overview Trends in BFSI
An economy has certain sectors that are BFSI industry is no stranger to
considered as its centerpiece, and a innovation. New products, approaches
large part of economic activities is and technologies are frequently
driven by these sectors. One such key adopted by the industry to stay in sync
sector is the banking, financial services with the market demand.Over the past
and insurance (BFSI) industry. BFSI few years, digitization has become a key
sector finds its presence in most driver towards shaping the vision of
activities that happen around us. For companies. This has ushered in an era
example, if a pharmaceutical company which is being dominated by big data
wants to setup a new drug and analytics which are expected to
manufacturing facility, it approaches play a larger role in decision making for
lenders say banks/NBFC etc. organizations. Digital transformation
(banking)for funding purposes. Once the has enabled companies to improve
funding is received it ropes in finance both their top line and bottom-line
specialists (financial services) who help growth through various means
the company manage its finances in the including sales strategy formulation,
best way. Further, this company would operational transformation, efficient
want to protect itself against losses from usage of financial and human capital
natural calamities, physical damages etc. Companies are increasingly viewing
etc. so it buys an insurance policy from analytics as an object to provide value
insurance providers in the market proposition rather than just an
(insurance). Thus, from this simple academic initiative. Therefore,
example, we understand how closely companies have increased technology
intertwined the BFSI industry is with the spending to reap the benefits of
events that happen in an economy. digitization for fulfilling their strategic
goals. Analytics technologies like
In this article we discuss the latest machine learning and neural networks
trends in the BFSI space, understand are industry agnostic to a considerable
how analytics and technology are re- degree which have resulted in them
defining the industry, and potential job being widely accepted across industry
opportunities to make a career in BFSI. domains including the BFSI.
6Re-defining long-standing approaches Machine learning techniques can be
used for achieving the above purpose.
Let’s understand a simple example to Machine learning algorithms
see how analytics is re-shaping the implementing the concept of Principal
older approaches, making them more Component Analysis (PCA) can be used
efficient. to this end. A PCA algorithm accepts all
BFSI companies use a variety of financial of the incoming interest data as input, it
models for their business purposes. For processes this data so that and gives an
instance, banks have a dedicated ALM output as a smaller set of interest rate
(asset-liability management) desk to data points which can explain close to
manage its asset-liability positions on a 99% of the interest rate sensitivity of our
daily basis. A bank’s entire business portfolio. This is technically termed as
model is based on the logic of matching dimensionality reduction. PCA can
assets with liabilities. As a result, interest potentially reduce the load on the
rates are a key risk factor which ALM system resources, as the system will use
desk has to manage. Market quotes for only those tenor points as have been
interest rates come in for specific tenors chosen by the PCA algorithm. This
starting overnight rates uptil say 30 enables freeing up of valuable system
years. Banks have ready systems for resources which now can be used for
fetching this market data for further other productive purposes. Advanced
usage. Now this data on a daily basis Machine learning libraries enable users
that too considered over a long period to readily build algorithms for
of time is naturally voluminous. For implementing PCA. For instance, Python
example, a bank is attempting to in particular offers wide variety of
measure the interest rate sensitivity of powerful libraries for such
its portfolio, it would be in-efficient to implementations.
use all of the available data, the reason
being not all of the available data may Job opportunities for the future:
add value towards the goal of Majority of new job roles in the BFSI
measuring portfolio risk. Thus, if the business are expected to be related to
bank can have a model to process the technology and its application to BFSI.
incoming data and choose only those Thus, for prospective job hunters, it
interest rate data points which would be a good idea to build expertise
contribute to the risk of its portfolio, on techno-financial concepts at the
that would potentially enhance the same time be aware of application of
overall system performance. math and statistics to analytics.
7In a dynamic market that we are model development/validation, product
currently living in, companies are pricing, risk management, derivatives
looking for professionals who possess a trading and structuring, etc. having a
blend of finance + hands-on technology hands-on technology skill including
skills. The demand for such knowledge of programming and
professionals is only going to grow with databases is a must have!
time. For professionals targeting
exciting roles in the industry including
How FinQuest Institute can help: Our pedagogy focuses on helping
At FinQuest Institute, we conduct candidates get complete clarity on core
specialized training programs in the concepts by relating all of our live
domains of Finance, Quantitative classroom sessions with practical
Analytics, and Programming for scenarios observed in the industry. Our
financial applications. Our training efforts are channeled to enable
programs are carefully curated after candidates develop a transferable skill
analyzing the skill-gaps faced by the set which can be applied to various
industry. Through a regular dialogue business challenges that they work on
with our network in the financial in the future.
industry, we strive to stay abreast with
the dynamic nature of skill For more information please visit the
requirements of the industry. We aim to below mentioned link -
deliver high quality training content by https://www.finquestinstitute.com/
combining our core domain knowledge
with our teaching skills.
8TALK OF THE TOWN
TCS Recognized as a Leader in
CX Services in BFSI
TCS has a strong practice in
Tata Consultancy
CX transformation with a
Services has been proprietary framework for
positioned as a Leader in customer journey
the NelsonHall NEAT for diagnostics, technology
partnership for journey
CX Services in Banking,
orchestration, and pre-built
Financial Services and assets by vertical with sector
Insurance. implementations.
TCS' suite Company's
of proprietary BFSI investments in agent
automation, analytics, and augmentation, omnichannel,
and contact center
process optimization
operational optimization such
platforms with subprocess
as QA automation have
use cases with a dedicated
helped TCS address the
store, were highlighted as
developing market demand
key strengths. for a unified CX strategy.
9TALK OF THE TOWN
PM Modi launches digital
payment solution e-RUPI
In addition to the government, he stated, if any
organisation wanted to help someone in their treatment,
education or for any other work, then they would be able
to give an eRUPI voucher instead of cash. This would
ensure that the money given by him was used for the work
for which the amount had been given.
Prime Minister
Narendra on Monday
launched digital
payment solution e-
RUPI, a person and
purpose-specific
cashless digital payment
solution
The development of digital transactions had empowered
the poor and deprived, small businesses, farmers and
tribal population. This could be felt in the record 300 crore
UPI transactions in July, amounting to ₹6 lakh crore, he
highlighted.
10Key challenges of Remote Workplace in the
BFSI Sector and the Ways to Address Them
First Prize
Shreya Bapat
PGDM 2020-22, Welingkar Institute of
Management Development and Research, Mumbai
As the world is still grappling with employee issues to the top line of the
Covid-19 pandemic, organizations have organizations. As we eventually move
started adopting hybrid or a remote ahead on this unknown and risky road,
working model. The propensity to adapt HR has been our moral compass
technology in these drastic times has throughout this journey. Let us dive
paved the way towards implementation deeper into the challenges faced by the
of digitization. The IT sector was capable BFSI sector in adjusting to the unknown.
enough to go virtual from the start.
The BFSI sector however was forced Digitization - As digitization is growing
down to walk on the digital path and at a faster pace especially after the
make some substantial changes onset of the pandemic, one of the key
because of the pandemic. challenges is to upgrade employee skills
The dramatic turn of events which to match this rapid development.
predates the year 2020 has completely Finance sector had been averse to
shifted the way things work. The automation and the use of IT. But now
significance of HR has increased to a they have to adapt to it in order to stay
huge extent. ahead of the curve. The mandatory
digitization has forced banks to adapt to
it within months which might have
taken longer in absence of pandemic.
The pandemic has also seen an
increased shift amongst its consumers
towards the use of online banking
services. As more and more people shift
towards the use of mobile banking, the
banks need to reskill and upskill it’s
employees to deal with the transaction
The PWC survey clearly shows that the based challenges. Banks are shifting
pre-pandemic and post pandemic from conventional systems towards
world will have huge changes. All great expanding their digital footprint,
changes are preceded by chaos and automation initiatives. They are
they are usually hard to get used to. adopting virtual training and
Implementation of changes come with assessment to upskill their employees,
a truckload of challenges. They can and are taught to embrace these new
have a noteworthy impact ranging from technologies.
11Provision of basic equipment Firms are now also adopting cloud
In order to function efficiently from based applications to secure the client
home, there is a need to have some data.
basic equipment. In order to help set up Employee Benefits
the workspace - table & chair, laptop, The greatest struggle of people who
WIFI connection ,mouse is essential. work from home is to look after the
Certain banks have provided one time work-life integration aspect. Many
money to buy the equipment while employees have small kids and elderly
others have ensured that all these people who might require attention.
things reach employees through courier Juggling between adulthood
service. responsibilities and work life
Data Security responsibilities is a challenge that
The threat of cyber attacks has everyone is facing in the remote
increased in the pandemic. The BFSI working mode. Some employers of the
sector remains the favourite target of financial sector have come forward and
cyber criminals. tried to help their employees to manage
There are huge financial losses if a cyber other things so that they can manage
attack occurs. The client base might also things more effectively.
reduce. There is a threat of ransomware, Workers can find educational caregivers
malware infection, data leakage, with the help of their employers. They
banking trojans. Banks are providing are also providing daily childcare
training to its employees about how to reimbursements and providing online
recognise attacks, what are certain steps resources of learning as well. Here are
that must be taken in case you detect some of the unique trends that are
an attack, anti-phishing training already occurring across sectors to help
programs, prevention of click baiting. people be more productive.
They are also taking help from third Employee well-being
party security providing organizations in Covid-19 has accelerated the focus on
order to safeguard themselves against the employee’s well-being.
any threats. Initiatives are taken to introduce happy
Banks are providing laptops to its hours every Friday where employees can
employees. These laptops only allow collaborate virtually.
one to access specific websites that are Games are also played team wise in
secure. No external device can be order to reduce stress. Employees are
connected. Bluetooth facilities are also encouraged to take their coffee breaks
usually disabled. Anti virus systems are and lunch breaks just like they used to
installed and threats get monitored in take in the office.
real time.
12Employees can even join virtual exercise With the increased workload, stress and
sessions so that they stay fit and active. anxiety are bound to occur. In order to
Employee well-being can be divided tackle this problem, employers have
into three parts - mental wellbeing, taken both proactive and reactive
physical well being and financial well measures to combat mental health
being. crises. Self-care applications, webinars,
Organizations are positively checking on early signs of stress are
contributing towards having special some proactive ways. Having mental
virtual sessions taken by experts on health counsellors and having exclusive
various topics such as diet & nutrition, Employee assistance programs are also
sleep cycle, physical workout for both helping employees across the globe
employees and their families. Banks reduce their stress and boosting
have also started giving medical productivity.
examinations , enhanced health Covid-19 has taken an economic toll on
insurance cover and preventive health many people. Hence, some of the
care measures. employers are also providing financial
With the increased workload, stress and assistance and thus fostering financial
anxiety are bound to occur. In order to well being of people. There are
tackle this problem, employers have programs on debt management,
taken both proactive and reactive budgeting, sessions of money
measures to combat mental health management, pension plans and loans
crises. Self-care applications, webinars, at low interest rates.
checking on early signs of stress are
some proactive ways. Having mental
health counsellors and having exclusive
Employee assistance programs are also
helping employees across the globe
reduce their stress and boosting
productivity.
13How the Insurance Sector is Accelerating
Recovery Post the Pandemic
Runner UP
Deep Arora and Shrishthi Kumari
MBA (2021-2023)
SIBM Pune
In India, the insurance industry protects But insurance firms are now regaining
individuals, groups, institutions, and ground thanks to aggressive steps taken
businesses. About 7 percent of India's to meet the changing needs and
GDP comes from the insurance sector, behaviors of customers, following a
which is growing at 15-20 percent. In long-lasting recovery from the crisis.
India, there are two main types of A government agency was responsible
insurance: Life and Non-life, which for supervising, regulating, and
cover travel, health, vehicles, household, developing the Indian insurance
crop, industry, gadgets, pets, and crop industry. The union govt. has approved
insurance. Globally, the COVID-19 capital infusion of Rs.12,450 crore in the
pandemic has a significant impact on three Public Sector General Insurance
business, individuals, society, and the Companies Namely Oriental Insurance
economy. The Indian financial services Company Limited, National Insurance
industry faces its most severe challenge Company Limited and United India
in nearly a century with the Pandemic. Insurance Company Limited in 2020 to
However, the industry rose to the improve their financial and solvency
challenge with efficiency and response position.
14Five main areas need to be addressed Life insurance is now considered a
by the insurance industry: necessity.
Develop innovative products. More than 70 percent of uninsured
Enhance digitalization (digital respondents said they now feel the need
access) and mechanisms across the to purchase a life insurance policy in a
entire value chain. survey by Benori Knowledge (more than
Make sure Agile teams and 100 respondents).
processes are in place. Product innovation and
Recruit & reskill staff. customization are in high demand
Complementary and value-added from customers.
services are also explored (e.g., tie- Three of the top expectations are:
ups with hospitals, online The innovative features of the
consultations, pharmacy discounts) product (55%).
Benefits were enhanced (40%) and
A Shift in customer behavior after payments were flexible (45%).
COVID-19 Capabilities of the insurer in terms of
A new customer behavior trend has digital technology (30%).
slowly emerged: Consumers are driving industry
It is now understood that life adoption of digital technologies. Due to
insurance is a pure risk-based cover. their strong focus on their health,
Many people now view insurance as a customers are making all efforts to
necessity in the event of an unforeseen minimize contact with agents and
event since the pandemic. As a result, prefer online and zero-contact
life insurance pull products may still insurance channels. During the process,
help somehow but have been stabbed. the company is also observing digital
channels' conveniences.
15Covid-19 has had an outsized impact on life insurance returns in the year
2020 relative to the overall market.
Response of the life insurance industry to COVID-19
Insurance companies response to The insurance companies offer remote
COVID-19: working stations and laptops for ease of
The company is switching to 100% transition. and some employers also
work from home (WFH) and is offer temporary cash in accounts amid
providing staff with benefits. lockdown.
Most insurers have converted staff to To minimize bottom-line impacts,
work from home, aiming to decrease rationalizing costs is essential. To
the impact on customer service by rationalize costs, insurers
making the transition as seamless as investigated all possible options.
possible. Rent and utilities, two of the biggest
expenses, were reduced as a result of
the lockdown.
16Protecting the bottom line by A new generation of upstarts is
shifting to digital services. As a threatening disruption by offering
result, insurers created digitally innovative schemes like
enabled omnichannel distribution differentiated pricing policies and
systems to offer primarily digital greater customer data tracking,
services. It was possible for Innovative products must be quickly
customers to complete every step of adopted and mainstreamed by
the sales process online, from the incumbents.
discovery of information to advice Digital investments are being made
and purchase. across the value chain. Digital
Before shifting operations to the services are still a long way off from
web, invest in cybersecurity tools being commonplace in the financial
and systems. There has been a industry. Companies will need to
significant increase in cybersecurity invest in top-of-the-line digital
investments. services as well as leverage cutting-
edge technologies like AI/ML and
The life insurance industry's blockchain.
transformation agenda in the post-
COVID-19 era COVID-19 has accelerated the
In the post-COVID-19 era, digital services digitization of insurance operations and
will no longer be regarded as add-on the creation of next-generation
services, but as a criterion for selecting operating models, according to 85
policies, they must adopt e-KYC and percent of Insurance CEOs.
robust cloud infrastructure for the entire It has turbo-charged progress on the
stack of services. In addition to creation of a seamless digital customer
improving service quality, digitization experience among 78 percent of
will make operations more efficient and respondents. And for 79 percent, they
cost-effective. say this has created new urgency for
A combination of artificial intelligence creating new revenue models.
(AI) and machine learning (ML) can be Dynamic work processes and agile
used to detect and predict customer teams. By overcoming the
behavior, and then to take proactive inflexibility of a hierarchical
measures to improve pivotal business organizational structure, agile cross-
metrics like persistence. In an industry functional teams with a focused
where most life insurance businesses objective will help achieve goals
are at parity with other businesses, faster.
advanced analytics & AI/ML tools are Retraining of staff. There is a long-
important for enhancing a company's standing tradition among insurance
offerings. agents and other industry personnel
of interacting with potential
The following five initiatives have been customers face-to-face before a deal
outlined based on these imperatives is closed. Now, they must learn how
for players in the life insurance sector to navigate and close sales in a 100%
to succeed in a post-COVID-19 world: digital environment, without any
Innovation in products. Insurance face-to-face customer interaction.
has long functioned as a legacy
industry across limited innovation.
17Partnerships that provide Conclusion
complementary services and value- The course of the pandemic and its
added services. Companies should aftermath will transform the industry
build their networks of partners to offer landscape in a way that will affect all
complimentary and value-added existing players in this field. Those who
services that differentiate them from do not pay attention and do not adapt
their competitors. Among them are will find themselves lagging. Insurtech
hospital tie-ups, online consultations, helps businesses accelerate innovation.
pharmacy discounts, and telehealth The recent crisis has hit the valuation of
services. emerging companies and provides
insurance companies with opportunities
to acquire capabilities more cost-
effectively. As a result, life insurance
companies can be at the forefront of
disruptive innovation.
18RISE OF DIGITAL-ONLY BANKS IN INDIA
National Finalist
Mayur Valmik Khaire
PG Diploma in Industrial Engineering, National
Institute of Industrial Engineering, Mumbai
The roots of Banking in India lie in the BFSI Industry has seen some significant
Vedic Civilization. The development changes in the last 15 years. It will be a
from institutions lending money whose top priority focus industry for India's
evidence can be found in Vedic texts, economic development to become a 5
Manu Smriti, to the recent digital-only trillion-dollar economies by 2025.
banking has been a challenging journey A digital-only bank, also called Neo
for the banking sector with many ups banks, provides banking facilities
and downs. through digital platforms, such as
But banking sector suffers a massive mobile, laptops, and the Internet.
setback during the Covid-19 pandemic. This bank uses a simplified user
Customers were reluctant to visit the interface for providing all the essential
branch due to social distancing and services by using automation, the
danger of infection of the virus. It shifted Internet of Things, and cloud
the customer's focus toward the banks computing. Digital-only banks have no
which provide online services. So many physical bank branches anywhere.
banks started to move towards These banks have been an alternative
digitization by providing many services option to other traditional financial
like opening a bank account online, institutions.
money transfer, etc. So, this gives rise to According to Zion Market Research(1),
Digital-Only Banks. the neo-bank sector was worth $18.6
Recently, India had moved ahead of billion in 2018. It was projected to grow
China as Asia's top financial technology at a CAGR (compounded annual growth
(FinTech) market. Now India has rate) of 46.5 % between 2019 and 2026,
become the world's second-largest generating about $394 billion by 2026.
fintech hub (After the US). India is Traditional banks face many problems
experiencing the 'FinTech Boom.' due to outdated processes and difficulty
Various Fintech innovations include in adopting recent technology. Neo
cryptocurrency and digital cash, banks do not face such issues due to
blockchain technology, and smart being continuously updated with
contracts. It is creating an environment technology. These innovative banks help
where a digital-only bank can capture their customers avoid wastage of time
the marketplace. Also, it helps Banking, when they wait in a long queue of
Financial Services, and Insurance (BFSI) traditional banks. Also, digital-only
to grow exponentially in India. banks expect huge responses from
19urban areas and rural economies Significant issues in front of digital-
because of various initiatives taken by only banks are:
the government of India for digital Security –Because of the Internet
literacy for the rural population, which revolution, banks are becoming
constitutes 70% of the population. One more prone to fraud and hacking of
such scheme is "Pradhan Mantri Gramin servers. With the rise of digital-only
Digital Saksharta Abhiyan banks, this risk has been increased
(PMGDISHA)" to increase digital literacy significantly. The customers of
in rural India by covering six crore rural digital-only banks are worried about
households. various challenges, such as hacking
Given below are some of the top digital- of passwords, phishing, and online
only banks in India for individuals as fraud, which puts the security of
well as businesses: banking transactions at risk and
InstantPay hence limits the adoption of digital-
Niyo only banks.
Open No physical presence – The absence
RazorPayX of branches may generate feelings of
In a survey conducted by Infosys(2), 48% insecurity in customer's minds and
of people responded that the superior forcing them to reduce transactions
mobile banking experience and high via such banks or shift to traditional
customer orientation make digital-only banking. So, a large amount of effort
banks popular. Also, 15% of people said is required to protect and maintain
that they would use Neo banks due to customer relationships in digital-
the benefit of their low processing fees only banking.
and high-speed services through online Scalability – Digital-only banks suffer
platforms. the challenge of scalability
By the excellent benefits provided by compared to traditional banks with
digital-only banks, 64% of people were branches at various locations. It
fully confident to do transactions via limits the offerings given to the
digital-only banks, thus popularizing it. customer and hence restricts
customer growth.
There is still a dilemma among Industry
analysts about the future of digital-only
banking in India. Some predict that it
may gain significant market share, while
others expect that digital-only banks
may see declined growth over time.
Analysts cannot predict the success or
failure of digital-only banking with a
single parameter. Rather a
Various traditional banks are also multidirectional issue that depends on
providing as that of digital-only banks each innovative bank's range of
like YONO (State Bank of India), products, services, customer orientation,
Digibank (DBS Bank), and Kotak 811 technological growth, financial
(Kotak Bank). resources, and targeted customers.
20Even with a good strategy and sufficient
capital investment to support a highly
securedEconomic
user interfaceImpact of COVID-19
and marketing on MSME sector
plan, a Neobank must provide an
exceptionally well customer experience
capable of initiating and securing all
transactions. The Reserve Bank of India
still has not issued virtual banking
licenses in India. So, various digital-only
banks collaborate with conventional
banks to have mobile/web platforms
such as ICICI Bank partnered with three
neo banks: Free, Instant Pay, and Yelo.
So, with technological development in
the banking sector, digital-only banking
has a bright future in the Indian
marketplace.
21Role of Marketing in BFSI Sectoe
National Finalist
Tanushree Samant, Swetangee Tripathy
ITBM, Symbiosis Centre for IT
2021-2023
The Banking, Financial Services and Once they have acquired Customer
Insurance industry is a vast industry details, they follow up with the
which believes that recruiting marketers customers so as to onboard them and
should be a top priority. Here we make them a long-term customer by
address marketing as the use of various building relationships which becomes a
strategies, processes and tools designed sustained means of generating revenue.
to generate brand awareness or drive Marketing employees call the customers
conversions for organizations in the they acquire as they are their mapped
banking and financial industry. customers and as per the needs or
requirements of the customers, they
Marketing drives product awareness pitch the financial products and services
which helps in cultivating long-term to them which the customers use to
brand credibility. It is of utmost save money for future use and which
importance to build trust among the helps the marketing employees to
target buyers and provide value to the generate revenue as well.
audience in the form of information,
entertainment and inspiration – all of If a marketing employee is not able to
which can be applied to the BFSI sector. achieve the daily target assigned to him,
This industry, like any other, is run by they have to carry forward the target to
business mindset and the primary the next day with the next day’s target.
objective is to earn revenue that it has to This is how marketing employees have
acquire from the customers. This to work hard to achieve the objectives of
business is acquired by the marketing the business.
employees which banks hire to
generate revenue. Marketing employees
build the trust of the customers that
visit banks i.e., it can be said that their
business runs on trust.
There are several ways marketing
employees earn business for the
company – visiting customer's homes,
standing in front of companies, try to
explain the banking products to the
customer.
22Retentions of customers is their The marketeers need to earn for
responsibility which can be achieved by themselves also, isn’t it?
building trust with the customers.
The answer is yes, as they have to
The BFSI sector plays an important role generate business for the bank and but
in the development of the economy. they cannot generate the business by
However, in the banking industry, there giving any wrong information about the
is 70% marketing and 30% operation banking products.
work assigned to each and every
employee in their key responsibility So, they should maintain honesty and
area. The marketing department is loyalty with every customer in their bag
divided into different roles like and probe them about the products and
Executive, Marketing Officer, Assistant services which interests the customer.
Manager, Deputy Manager, Marketing
Sales Head and more. The executive The marketing employees have to
employees go out and bring business to ensure that customer’s confidential
the bank and they report to their line information cannot be with the
manager i.e., deputy manager. marketing employees in their kitty as it
may become an audit issue. There is TAT
As we know India is trying to grow (turnaround time) for every employee to
towards a developed economy and the get the details of the customer logged
pandemic has already taught us as we in the system.
should save funds to make our future
secure. Thus, every marketing activity in the
banking industry has to be properly
Herein comes the role of marketing planned, organized and implemented
employees as they provide financial to achieve success.
planning to customers by explaining the
saving plan which will help people to Currently, we see several interesting
have a good understanding of saving trends for marketing in the BFSI
plans and their financials and they can industry in India – Automation and
decide on which plan to go for and Digital Marketing being the key trends.
where to invest so as to save more Artificial intelligence is one of the most
money for their family and a secure powerful tools available to financial
future. marketers.
It is crucial for hyper-personalization
and for analyzing massive amounts of
data to build predictive profiles to
understand customer behaviour and
propose appropriate offerings.
As per the Dentsu Digital Report 2021,
the biggest spenders on digital media
are the BFSI sector at 57%.
23India AI & BFSI
Market Size, By
Technology, 2019
& 2026 (USD mn)
Distribution of
digital advertising
expenditure in
the BFSI Industry
across India in
2020
Statista
Examples of successful marketing There is an imperative need for a proper
campaigns were that of State Bank of marketing strategy for Marketing
India and YES Bank in 2020. State Bank employees' professional growth and
of India empowered users to access organizational growth. Marketing is not
banking facilities at home with its about forcing the customers to take the
mobile app YONO - You Only Need One, BFSI products and services so as to meet
an integrated digital banking platform. the target. It is all about identifying the
customer's need and serving them as
With a voice-enabled mobile ad, the per their requirement as this is primarily
bank advocated for social distancing by is a client-based industry.
encouraging users to walk into the
world of SBI by saying “Enter”. YES Bank Therefore, serving the customer well
engaged users with an uplifting, voice- according to their specific needs is the
enabled mobile-led ad that prompted first priority of marketing in the BFSI
users to say “Yes” to preparing for new Industry.
beginnings. The campaign recorded a
click-through rate of 2.9% which is over
14 times the 0.20% industry average for
mobile banners.
24The Need to Redefine Digital Learning
in the BFSI Sector
National Finalist
Dr. Arpita Sen
MBA, Human Resources
NMIMS, Mumbai
Over time, the term "training" has taken BFSI is one of the industries that has
on many different meanings. The been impacted by the digital
approach has evolved from classroom to revolution. Though consumers
computer based to e-learning, but the benefit, the benefits do not negate
goal remains the same- to improve skill the necessity for human interaction
sets and stay competitive in the current on the back end as banks must finally
market. The medium of training is handle the queries created online.
similar to the shadow effect of To adapt to this transformation,
technology: as more people become
employees must gain a better
tech-savvy, information sharing
understanding of how technology
channels shift.
works. Banking institutions are
embracing new technology and
Over the last two decades, the BFSI
offering a wide range of digital
sector has evolved in its plethora of
offerings in the past decade, hence it is
services, including mobile banking, net
time to re-skill and up-skills its learning banking, and telebanking.
platforms.
Mobile and social learning are on the As a result, the impact on worker skill
rise to promote engagement, according sets in this area is likely to expand
to LinkedIn Learning's 2019 Workplace rapidly. Other than technology, soft
Learning study, and mobile learning skills are also important in retaining a
continues to grow. BFSI employees customer's loyalty.
must know how to go to the highest
echelons of their organization's Now the question arises are the
hierarchy through knowledge and current digital learning solutions
upskilling. According to research, India's adept in transferring soft skill
online learning market is anticipated to knowledge? Hence, the digital
rise to $1.96 billion in 2021. The move learning landscape needs to be
from LMS to LXP platforms and training redefined.
approaches like Technology enabled
Blended Learning illustrate that the As the BFSI industry is going through
market has advanced from providing
the ‘growth phase’ of its business in
"one size fits all" solutions to tailor
India, it will be required to follow
effective solutions.
principles of breakthrough learning.
25L& D Strategy Plan
Figure 1: 6 D framework
G Defining Focus Areas, Determing
ways to measure success
✔ Define Business Outcome:
Aligning with the growth objectives,
Determining a person's
industries aims for the following
perceptions towards the learning
business outcomes- R modules, determining conflict
a. Improvements in employer branding
and customer engagement scores; factors for goal attainment
Favourable reviews across social media
networks; Determining possibilites of action,
b. Financial assistance for sellers; O brainstorming on benefits and
c. Style and substance of training pitfalls of the options
delivery;
Employee retention rate and prevention Defining next steps,
of competitive poaching of talent; Enlisting the support required to
W
d. Making relationship management in a take the next steps
company more sustainable.
✔ Design the complete experience: Figure 2: GROW Model of Learning Goal
Transfer climate should be prioritised, cascading
with a focus on supporting continuum
learning by expanding learning goals ✔ Deliver the application:
and transferring it to team performance. To close the gap between learning and
It's imperative to focus on "What's in it doing, certain elements can be
for me?"and how the learning modules incorporated in instructional models
will help employees advance their like -
careers inside the company.
Learning goal cascading is essential a. Spaced learning: Breaking down
across organizations so that it reaches performance goals into monthly
all levels of the workforce. GROW model objectives and incorporating learning
can be used to ensure goal cascading. objectives.
26b. Scaffolding: Withdraw instructor help II. During Training
over time while assessing performance Ensure that the content is timely,
and encouraging learners to become relevant, and relevant to the difficulties
more self-reliant. that employees face on a daily basis, as
c. Active engagement: Businesses can well as contributing to the attainment
create their own ‘Workspace by of a corporate goal. Remember that the
Facebook' to create an internal goal is for learners to do something
community of employees and set team- different when they complete the
wise learning objectives. training, so make it easy for them to see
d. Preparation: Classroom learning is what that is and how they may use it in
being supplanted by digital learning as various situations.
a result of the epidemic. Students
should be prepared to use digital III. After Training
learning resources. Turn current training knowledge into
e. Reflection: Periodic learning reminders, summaries, and thought-
assessments and comprehensive provoking anecdotes using the
interviews by superiors can aid in chunking process outlined above. These
reflecting the training intervention's could be given out after virtual class to
success aspects. assist students recall what they've
f. Self-Reference Effect: Elaborative learned.
Rehearsal is a one-of-a-kind approach to
do this. If an employee can have some Don't forget to inform the learners'
self-reference with the clients' managers about what's happened and
requirements and desires, he or she will what new skills they should encourage
be better able to design solutions. their staff to use. If necessary, provide
Digital modules should incorporate self- job aids that serve as helpful reminders
reference activities. of steps and what to do when
g. Practicing with feedback: One of the confronted with a new task learned
major difficulties in the BFSI business is during training.
the lack of feedback in digital learning.
Employees are currently unable to grasp ✔ Deploy performance support:
where they fall short because their Post-training surveys and follow-up
supervisors are not available for surveys in monthly, three-month, and
feedback. six-month intervals can be conducted to
determine how much knowledge the
✔ Drive learning transfer: learners have retained and how they are
Setting up a transfer climate is essential applying it to improve their work
for the success of the L& D strategy. It performance. Superiors should be given
consists of three steps: specific instructions on how to track
I. Before Training changes in behaviour, attitude toward
E-learning designers generate a great work, and performance output after
deal of data. Consider how knowledge training.
aspects could be split down into bite-
sized chunks and presented to learners To encourage learning transfer, internal
prior to training to capture their interest. awards and recognition can be given
This content can then be used to team wise and individual wise.
reinforce what was learned in class.
27Document the results
To what extent has learning interventions
Strategic
have improved staff retention, increased
Alignment customer engagement, and boosted
customer conversions
How repeatable is the concept across
business units, and how transferrable are a
Capabilities manager's learning skills to his or her juniors
and work responsibilities in the workplace?
Are there any capability gaps that need to be
filled?
What is the extent to which employee
Organizational involvement has increased? Has BFSI's
Health branding improved?
Apart from raw competencies, how well does
Individual BFSI's learning intervention enable mid and
lower level personnel achieve maximum
Peak impact in their professions while maintaining
Performance a decent work-life balance?
Figure 3: Considerations to be kept in mind while documenting results of e-
learning intervention
28Figure 4: ACADEMIC Framework for redefining L & D departments to digital mode
Without evaluation, which is the least When it comes to relationship
considered aspect of training, the management, data-based decision-
learning cycle is incomplete. Finding making has become increasingly
gaps for reskilling and upskilling important. Building a digital mentality
becomes difficult and non-scientific should be prioritized over developing
until an individual's progress is digital abilities.
monitored. However, evaluating a
remote workforce might be difficult at
times. Platforms like Centum LearnPro
make the evaluation process easier by
recording an employee's progress at
each step of learning and providing the
data to decision-makers so they can
make better learning decisions for their
staff.
29WeAchievers
Team WeConquerors
Pranav Pandey Team Photo Abhishek Dhruv
MMS MMS
(2019-21) (2019-21)
AGR_i_MPULSE by FMS BHU; WINNER out of 20,971 participants.
We stood 1st among 20,971 participants in a quiz conducted by FMS BHU under
Dare2Compete Online Quizzing Festival (OQF) Season 5.
Team
Abhishek Shankar Ashish Ajgaonkar
PGDM RM PGDM RM
(2020-22) (2020-22)
FORSE by KJ Somaiya Institute of Management, Article Published In Annual
Magazine.
Our article on the topic: “The last mile delivery – The Challenges & Road
Ahead” was published in the annual magazine of KJ Somaiya under FORSE, with
the theme: Logistics Management in 21st Century.
30Call forArticles
We invite articles for the 115th Issue of of SAMVAD.
The Theme for the edition - “Industry 4.0"
The articles can be from Finance, Marketing, Human Resources, Operations
or General Management domains.
You may also refer to sub-themes on Dare2Compete.
Submission Guidelines:
Word limit: 800 - 1200 words
Cover page should include your name, institute name, course details &
contact no.
The references for the images used in the article should be mentioned
clearly and explicitly below the images.
Send in your article in .doc or .docx format, Font size: 12, Font:
Constantia, Line spacing: 1.05’ to samvad.we@gmail.com.
Please name your file as: __
Subject line: ___
Ensure that there is no plagiarism and all references are clearly
mentioned.
Clearly provide source credit for any images used in the article.
31You can also read
