Karur Vysya’s focus is on improving tech for customers’ ease: Chief Executive Officer

Venkataraman was interacting with reporters in Coimbatore after launching the bank’s three new technology based services – FASTag, United Payments Interface (UPI) and the Bharat Bill Payment System (BBPS) – and inaugurating their new Coimbatore Divisional Officer premises. 

Venkataraman said that for over two years the bank is investing Rs 80 crore annually on the technology front. The bank is also developing technology based banking products that not only suit smart phones but also suit feature phones. He believes that tech savvy, next generation customers and people in the retirement bracket are using technology based banking services. He said that cashless transactions in the bank have gone up manifold since demonetisation came to effect. 

He said that digit a l transactions through Point of Sale (POS) machines have gone up four times, Immediate Payment Service (IMPS) transactions are up by five times and internet banking by three times. 

The CEO revealed that the number of POS machines issued by their bank has double from 10,700 units by end of October to 21,000 units so far, in four months. While demonetisation has given the push the banking needed to go for technology based products, he expressed hope that those who got used to enjoying these services continue to use them despite increase in cash flow. On the other hand, he said that the bank is also considering expansion of branches.

“We are looking at establishing branches in the size of 600 to 800 sqft compared to conventional bank branches that occupied vast space and had 10 to 15 counters,” he said. He also justified the need for more physical branches for looking into the loans and SME sectors and for on-boarding customers. 

Not committing on the number of such branches they would be coming up with, he said that the branches with lesser work area would be established from September 2017. 

On the need for more physical banks he further said that rural and semi urban customers who account for a major share of their customers like to see a bank and have a banking experience. 

“They have apprehensions on cyber security and don’t have much faith in technology,” he said. About banks charging customers with very high transaction charges and insisting on a higher minimum balance, he said they are forced to come out with such measures to make up exorbitant overheads in the form of operational cost, upgrading software and hardware and cyber security. 

However, he said that banks are competitively minimizing those charges so that customers don’t switch to another bank.