Digitisation of banking services aid collection of auto-populating data, helps better credit assessment: Finance minister Sitharaman

Digitisation of banking services aid collection of auto-populating data, helps better credit assessment: Finance minister Sitharaman


CHENNAI: Union finance minister Nirmala Sitharaman says collection of auto-populating data by banks will aid better credit assessment of borrowers, which can only be achieved through banks digitizing their services.
Speaking at the centenary year celebrations of Tuticorin-based Tamilnad Mercantile Bank Ltd, on Sunday, Sitharaman said “Today, we don’t need to set up new branches in remote areas, as technology has replaced a physical branch. All banking requirements of customers can be met by digitization of banking services. The way forward, for any bank, particularly for banks like TMB will be digitizing its services.”
With over Rs 41,000 crore of deposit, of which about Rs 32,000 crore are given as advances. “If that is the rapidity of which the bank is using the money to make more business. Then, it is more efficient to adopt tech-oriented solutions,” she said.
The finance minister also stressed that tech-related solutions take away other kinds of problems and fintech is the biggest area (of business) using which we are able to cross populate data. Such, auto-populated data helps in better credit assessment of customers and better lending by banks.
TMB has been cautious in taking steps forward, and that has paid off. “Although TMB established the bank in 1921, the bank had adapted to accepting foreign exchange in the 1980s and did not rush into adopting newer business methods. Similarly, I believe digitization should be adopted completely,” she added.
As digitization cannot be avoided for banks’ own good and its customers, she stressed “TMB must lead all your customers to the digitized way of doing business and make sure financial inclusion is attained. Southern Tamil Nadu has always been progressive towards creating business activities, she said.
She also said most banks have achieved the credit guarantee schemes through priority sector lending.
Speaking on how a third wave can be avoided through faster vaccine administration by the government, “About 73 crore Indians (of the total 130 crore Indians) have received at least one dose of the Covid-19 vaccine. We can avoid the third wave,” she said.





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