India’s 3rd largest lender, Bank of Baroda is set to fully digitise its lending operations including home, agriculture, Micro, Small and Medium Enterprises(MSME), personal and auto loans.
- Verification and issuance of new loans will take place through this digital platform & past loans will also be digitized to reduce costs and improve profitability.
- The bank plans to digitize a large part of its retail and MSME processes in the next 6 months.
Gist about Digital Lending Department (new vertical):
i.The bank has set up a new vertical, digital lending department at the corporate office, which will have substantial overlap with various credit verticals including Retail, MSME, Agri & service verticals like Analytics centre, Risk Management, Marketing.
ii.According to the Bank’s 18-month Action Plan, it aims to set up and operate the digital lending department within two months.
iii.The later phase of the plan includes consolidating the bank’s ongoing digital initiatives into this set up. The department will then be integrated across the bank’s systems.
iv.To set up this digital lending department the bank has reached out to the Big Four and some white shoe consultants like McKinsey and Boston Consulting Group.
Note– The bank has recently completed its merger with Vijaya Bank and Dena Bank.
Key Point
State Bank of India(SBI), has also created a separate Financial Inclusion and Micro Market (FI&MM) vertical within the bank with an exclusive focus to provide financial services to people in the interior of the country.
About Bank of Baroda:
Headquarters– Vadodara, Gujarat
Managing Director(MD) & Chief Executive Officer(CEO)– Sanjiv Chadha
