Banking Tech Awards 2020 Winner: Bank BRI & Infosys Finacle – Best Use of IT for Lending
As the acceleration brought about by the COVID-19 pandemic continues, banks across the industry are undergoing a revamp of the way they deal with customers, particularly when it comes to lending.
Rajashekhara V. Maiya, Infosys Finacle: “Everybody has gone into a platform business”
Rajashekara V. Maiya, vice president and global head of business consulting at Infosys Finacle, says banks are undertaking a great rematching of the journeys their customers must take.
“You can no longer expect your customers to come into the branch and stand in a queue,” says Maiya. “They don’t see that as the basic level of service anymore.”
So, what can banks do? Maiya says they must look at partnerships to provide a reinvention of their lending systems in the short term, while working on technological change in the interim. That change must occur eventually, he says, which is where a good technology partner can help.
Infosys Finacle worked with Bank Rakyat Indonesia (BRI) to launch Ceria, a new digital credit card designed to appeal to millennials. The project followed existing work with the bank on its development of micro-lending service Pinang.
Ceria allows Indonesian users to build their credit history through the card, and has integrations with local e-marketplaces Tokopedia Dinomarket, and Panorama. BRI claims that most new customers are approved within ten minutes.
Maiya says there are three layers of the technology landscape through which Infosys assists clients like BRI. These are the back-office business engine and the system of record; a middle layer focused on digital engagement; and a final layer based on digital experience.
Each of these layers is independent of one another, enabling the vendor to target the specific needs of a client. “Say a bank has already implemented a new core banking system,” says Maiya, “but they now want to go digital for customer experience.
“We can offer that layer, but further, we can separate out their needs on that layer. Do they want a mobile app, online banking, or WhatsApp banking? We can enable any combination of those.”
The use of multiple channels across for lending has become the new standard, says Maiya, and is something that banks up and down the tier system are looking at.
“Slowly banks have moved towards offering the same service across multiple channels. The new challenge is offering that same service not just across existing channels, but emerging ones as well.”
Banks must continually assess their business models to ensure they are prepared for the next big thing, says Maiya.
“They cannot just depend on a traditional lending, borrowing and payments business and expect to be a leader in the industry. Everybody has gone into a platform business, and that brings with it the marketplace opportunity for banks to become an ideas export business.”
That platform marketplace model is what Maiya calls “the pinnacle of digital engagement” and something that Infosys brings to the table. The importance of open banking ecosystems cannot be overstated, he adds.
Infosys Finacle has created its own marketplace, available via its platform, which offers access to more than 50 fintech services. On top of that, it enables banking clients to link into non-financial gateways, like booking flights or ordering tickets at the cinema.
Maiya uses India as another example of the changing dynamic of the marketplace. More than 80% of banking transactions in the country are anchored by non-banking entities. In that scenario, Maiya adds, “you cannot stay isolated and try to come out on top in banking”.
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