
A recent study conducted by Deloitte India has shed light on the need for senior management leaders at Indian public sector banks (PSBs) to enhance their digital capabilities in order to effectively transform their banks. The study, titled ‘Deloitte’s PoV on Public Sector Banks,’ analyzed the insights of over 100 PSB leaders and highlighted the rapid pace at which digital transformation is occurring within the banking industry. It emphasized the importance of leaders at all levels being proficient in implementing digital strategies.
According to the study, digital transformation is occurring in three key areas within PSBs. Firstly, there is a shift in the way products and services are being delivered to customers. Secondly, there is a focus on streamlining operations and simplifying services. Finally, there is an increased emphasis on cybersecurity and enterprise risk management. Additionally, PSBs also prioritize social responsibilities such as financial inclusion.
The study points out that PSB leaders find themselves in a challenging position, needing to swiftly transform their banks while also upgrading their working methods and processes to align with the digital transformation. Complicating matters further is the diverse and extensive nature of operations and business managed by PSBs.
The senior management at banks typically includes chief executive officers, assistant CEOs, chief financial officers, and other senior executive officers. Middle-level leaders consist of branch managers, divisional managers, general managers, and similar positions. Junior leaders encompass probationary officers, clerks, and others.
Deepti Agarwal, partner of Human Capital Consulting at Deloitte India, highlights the importance of operational details for senior bank leaders and identifies a gap in their implementation of emerging digital trends. She emphasizes the need for these leaders to be agile, adaptable, and quick to pick up on digital trends and implement them within their organizations.
Prakhar Tripathi, head of Financial Institutions Practice (India) at Deloitte India, clarifies that possessing coding skills is not a requirement for senior PSB leaders to exhibit digital capability. However, they must possess the ability to drive digital transformation and ensure its adoption. Tripathi emphasizes the importance of leaders who are aware of market changes, client needs, regulatory requirements, and internal bank dynamics.
The study also notes that the appetite for digital change is higher among relatively junior positions. It suggests that the current junior management in PSBs are more likely to identify and introduce changes in their way of working, taking risks and challenging the status quo. Middle management, on the other hand, appears more comfortable with experimenting with new operational ideas but prefers adhering to established conditions rather than actively changing the rules.
Amrita Siyan, director of Human Capital Services at Deloitte India, acknowledges the experience and wisdom that senior leaders bring to the table. However, she highlights the drastic changes in the banking landscape, which have resulted in greater agility among younger and middle managers, as well as junior managers.
The study concludes that top management level support and guidance are necessary to enhance the existing capabilities of junior managers. This will ultimately strengthen the organization’s ability to adapt and thrive in the evolving digital banking landscape.
The study, titled ‘Deloitte’s PoV on Public Sector Banks,’ analyzed the insights may have missed the constraints about PSBs that each and every officer of PSBs sometimes avoid their lunch and medicines because, behind this many factors are there that
in morning first of all staff adjustment at counters,
attending calls from Head office
to dispose off necessary and unnecessary complaints,
sending various mails,
booking cross selling producs
attending BLCC DLCC meetings with Administration, taking important decisions
and very shocking that there are also exceptional and exemplary instances that when any near or dear expires but Bank officer couldn’t reach there.
Due to these limitations how can we expect from learning something something.
In PSBs when leave office in evening but the very next day priority from Head office on phone call changed.
Despite of all, our PSBs are too capable to defeat them.
If the PSB follow Delotte path days are not far that they will be at the receiving end like SFB, HDFC, Kotak having an ever increasing head that they will be off balance till resurrection. Time has come to shave excess technology on those Bank. The definition of banking is same since inception only careful permutations & combinations may be allowed with care.
Paytm was told to.be careful regarding accepting technology but they didn’t pay any heed to the advice of the then Guv. RBI when he patted them for their progress.
Beware of the tiger in sheeps skin .
Ashish Bardhan
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