Banks and fintech firms are collaborating on a range of applications.
As part of the government-approved reform program for fiscal 2025, state-run banks will focus on data-driven manpower planning, succession planning, and productivity enhancement, according to sources familiar with the development.
According to them, they will include data and analytics with the proper interventions and escalations into all human resource operations, including postings and transfers.
Adding that the aim is to improve employee productivity and linkages with performance management and also have more gender diversity in public sector banks (PSBs), a banking executive said, “This will lead to a better succession planning process by integrating database profile-matching and role-requirement mapping.”
Another official stated that the goal also includes developing talent through individualized, customized learning solutions.
“This will also lead to promoting gender diversity in the workplace, with a special focus on the proportion of female employees in senior management,” said a third executive aware of the developments.
Banks will also try to develop measures to deal with the dropout rate of female employees starting with Scale II, including transfers and postings to rural areas.
According to the above-mentioned executive, lenders are already developing a comprehensive plan and roadmap for implementing generative artificial intelligence (GenAI) systems, with pilot use cases scheduled for release throughout this fiscal year. Banks are collaborating with fintech companies on a range of applications.
Using modern technology and other cutting-edge features is one of the primary metrics under the Enhanced Access and Service Excellence reform version 7.0, which was implemented in April.
The Reserve Bank of India noted in a study released on Monday that middle-tier positions were being replaced by technology and that digitalization was decentralizing financial labour through outsourcing and telework. According to the report, this change has affected the officers-to-support staff ratio, which changed from 50:50 in FY11 to 74:26 in FY23.
Pointing out that the employee turnover rate exceeded 30% in private banks in FY23 due to hiring via digital platforms, the report said, “Automation replacing labour can potentially widen the gap between capital and labour returns, creating a fragmented labour market with low-skill/low-pay and high-skill/high-pay jobs while middle-tier jobs are displaced by technology.”
Also read: Achieving Rapid Outcomes with AI-Driven Cloud Analytics
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