How has the current economic and financial environment impacted the growth strategies of your bank?
In the current scenario, the Government of India’s policies have created a highly favourable and positive environment for banks, especially cooperative banks. The proactive involvement of the Union Ministry of Cooperation, along with the Reserve Bank of India’s supportive outlook, has significantly benefited us. The RBI now offers co-operative banks the same level of operational opportunities as other banks.
Importantly, the RBI’s Innovation Hub Department has formed a working group for co-operative banks, helping us introduce technology-driven banking services to our customers. The Government of India recognises that financial inclusion cannot happen without co-operative banks, which can play a critical role in improving the lives of common people. Overall, the present atmosphere is extremely conducive for co-operative banking.
How is your bank embracing digital transformation while maintaining a strong connection with traditional banking customers? What role does technology play in enhancing customer experience and operational efficiency in your bank?
Today, even the smallest customer demands technology-based services. The true strength of co-operative banks lies in our personalised touch. While traditional customers remain loyal, adopting modern technology helps us provide alternative solutions, making us competitive with private and small finance banks.
Technology ensures faster, accurate, and more satisfactory services, UPI being a notable example. The better our technological systems and services, the greater the potential for both qualitative and quantitative business growth. To remain competitive, cooperative banks must collaborate and support the Umbrella Organisation (NUCFDC), set up by the Ministry of Cooperation. This platform can empower co-operative banks with cutting-edge technology.
How are you addressing cybersecurity challenges as digital banking adoption increases?
Ensuring robust cybersecurity and operational effectiveness requires multiple efforts. First, both staff and customers must be properly trained. Banks must treat every advisory issued by regulators with utmost seriousness and use high-quality, secure banking apps. Social media should be effectively used to spread awareness, and cybersecurity policies must be rigorously implemented.
Customers need to be informed about potential threats to prevent them from falling victim to cyber fraud. Internally, banks must deploy EFRM (Enterprise Fraud Risk Management) modules that operate 24/7. Regular due diligence of staff and vendors, periodic Vulnerability Assessment and Penetration Testing (VAPT), continuous software updates, and thorough root cause analysis for any complaint or suspicion are essential. Implementing CAPA (Corrective and Preventive Actions) ensures that even small issues are addressed seriously.
How is your bank contributing to financial inclusion and economic empowerment in rural and semi-urban areas? What innovative banking products or services has your bank introduced to cater to the under-served segments of society?
Our bank’s motto is “The Big Bank for Small People,” and we live by it. We work directly with around 10,000 customers daily through our collection agents, many of whom are small business owners. We offer instant loans up to Rs 1 lakh, disbursed within just 15 minutes. Nearly 1,000 customers currently benefit from this scheme, with flexible repayment options, daily or monthly.
Recognising India’s agrarian economy, we provide agricultural and allied business loans ranging from Rs 1 lakh to Rs 50 crore to over 10,000 customers. These loans support dairy farming, dal and oil mills, warehousing, and more, significantly boosting rural employment. In Latur city, Janata Bank is considered the economic lifeline.
Our services reach rural areas through business correspondents, internet and mobile banking, QR codes, sound boxes, BBPS, and more. Janata Bank has pioneered many NPCI initiatives, and we hold a Bharat Connect Operating Unit license, rare for cooperative banks. We also offer a unique, personalised banking experience.
What leadership qualities do you believe are essential for steering a cooperative bank in today’s uncertain times? How do you cultivate a culture of resilience and adaptability within your organisation?
Effective leadership in cooperative banking requires more than giving speeches or directions. It demands action, executing ideas using available resources to ensure transparent and efficient operations. This determines the success of the bank and its leadership.
Many cooperative bank employees at counters don’t fully understand technical banking jargon, which limits results. Copying policies from RBI circulars or other banks without checking compatibility often causes issues. Hence, it’s crucial to:
- Clearly communicate the bank’s vision and policies to staff
- Emphasise each employee’s importance
- Delegate responsibility and empower the team
- Involve the right people in decision-making
- Provide proper support to the Board of Directors
These practices build resilience and adaptability within the organisation.
Your comment on the evolving role of fintech companies for the development of cooperative banks?
FinTech companies are now an indispensable part of the banking ecosystem. No bank can survive the future without collaborating with fintech. This partnership approach fosters collective growth.
Cooperative banks must recognise their strengths and focus on delivering excellent banking services, supported by modern technology. If fintech companies look beyond just profit and aim to build trust in the banking sector, the partnership becomes a win-win. Together, we can provide cost-effective, high-quality services through cutting-edge tech solutions.
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