It is now time for Co-op banks to switch to technology

It is now time for Co-op banks to switch to technology

Mangalore Today News Network

Mangaluru, Jan 17,2017: It is reported that Chartered accountant Ravindranath stated that after demonetisation cooperative banks and societies should necessarily adapt to the changes, with increased adoption and incorporating technology like nationalised and private banks.

CA, Ravindranath, addressing representatives of cooperative banks and societies during a state-level workshop on the steps to be taken towards digitising post-demonetisation organised at  SCDCC, South Canara District Central Cooperative Bank,  on Jan 16, Monday.

 

 

 

 

 

 

 

 

Using power-point presentation, Ravindranath apprised the gathering of a major step taken by the LIC, Life Insurance Corporation of India earlier to store the records in a digital format. The LIC head office at Juhu in Mumbai had to utilise the space of three floors to store the records. Post-digitising, the data was recorded in  data base, thus saving the mammoth space that was later rented out.

Elaborating on the innovative measures adopted by other banks to woo customers, Ravindranath said, "Switching over from ’sellers to buyers’ market is the need of the times. There is a need to reach out to all types of customers. Products need to be both, ready made and tailor made. Service should be provided at the best, advertising is the tool against mouth to mouth canvassing. The focus should shift from being institution friendly to customer friendly as well as while the approach should shift from traditional to professional."

Preceding this resource person Mahabalagiri expressed concern that cooperative banks may lose customers if they continue with their traditional modes of business. It is essential to change, especially in the wake of dwindling usage of cheques and pygmy collection in transactions.  "However, in what may bring relief among the banks for now, total digitising of Indian economy is still a long way to go, as 78% of transaction is still based on cash in the country," Mahabalagiri said, adding, "Till then, the cooperative banks have to deploy technology-based transactions with swiping machines."

He pointed out that youth, who are largely dependent on nationalised banks, is yet another resource that the cooperatives have failed to tap.  Mahabalagiri also warned against the so-called computerisation with a PC that serves no purpose to meet the growing challenges.

The SCDCC Bank president M N Rajendra Kumar said he will impress upon the authorities to extend the period of repayment of loans by another two months up to April for the benefit of short-term, mid-term and long-term loanees. Following a demand earlier, the period of repayment had been extended up to February. However, it appears to be insufficient, owing to the demonetisation.