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Special Articles

The key framework that ceditable Sustainability processes. This could involve Sustainability Assurance changing times. To meet the intensify further in the incumbent financial provide cutting edge & journey, banks must align themselves Implementing digital technologies transparent and more inclusive
governs sustainability Reporting practices. promoting the use of digital Engagements (SSAE) 3000, 16 Future Frontiers: demands of increasingly digital coming few years and banks institutions. As the lines innovative digital banking towards building products and will not only help banks drive cross-border payment services
reporting in India is the tools, data analytics, and Social Audit Standards (SAS and mobile customers, banks will have to take bolder steps between technology and solutions to all our services to ensure that internal operational efficiencies internally would deliver widespread benefits
‘Business Responsibility and In the above backdrop, artificial intelligence to collect, 100 to 1600), Sustainability are transitioning from to establish a formidable business are becoming blur, customers. YONO, our processes are optimized and are and externally, accelerate for citizens and economies
Sustainability Report’ (BRSR) potential focus areas analyse and report Reporting Maturity Model “transactional” to position in the market. banks have realized the flagship mobile banking and aligned to sustainability goals. From innovation, reduce costs, retain worldwide, supporting economic
introduced by the Securities concerning sustainability ESG-related data. (SRMM) Framework and has Competitiveness, “interactive” banking that importance of technology lifestyle app, launched in 2017, a long-term perspective, financial and grow customers, but will growth.
and Exchange Board of India reporting standards on a also started Certification offer real-time advice and innovation and are leveraging has been very well received institutions should aim at building a also lead to more sustainable
(SEBI). Recently SEBI revised global level can encompass- Capacity Building Course on BRSR. In 2022, greater convenience. Key Technology it to build novel products and by our customers and the sustainable ecosystem covering both outcomes as a business. This is UPI is in a prime position to be
its BRSR format, integrating Promoting efforts to enhance ICAI hosted the World influential technologies that services for their customers. scale of impact can be gauged external stakeholders i.e customers what makes sustainable banking a leveraged for enhancing
BRSR Core consisting of a set Harmonization and the capacity of companies, Congress of Accountants at Technology, are shaping the industrial Technology based innovations It is a win-win proposition for from the fact that YONO has and investor’s as well as internal ‘win-win’ for the banking and cross-border payments services. The
financial services sector.
of Key Performance Standardization especially smaller and Mumbai, the first ever competitiveness are are redefining industries and both banks and Fintechs to a cumulative registered user processes i.e. building products, impact of UPI on cross-border
Indicators (KPIs) / metrics Exploring globally recognized medium-sized enterprises, to carbon-neutral Congress. Conversational AI as a changing the way businesses collaborate and work much base of 60 million plus users services, and internal operations. In medium-to- long term, sustainable payments is expected to be
under 9 ESG attributes. From sustainability reporting effectively report on their service, Artificial Intelligence function. Digitalization and more closely to bring (as on 31.03.2023) and has banking has the power to open up a significant and similar to the impact
the financial year 2023-24, the standards to ensure sustainability performance. India’s culture is rooted in Sustainability, (AI), Robotic Process innovative digital technologies together forces and value for helped to improve the Three trends driving the need for range of benefits, from reducing of UPI on the domestic payments
updated BRSR format is to be consistency and comparability sustainability, as it reflects a Automation (RPA), Internet of are creating unprecedented customers. productivity of the Bank Sustainability in the Banking costs, increasing operational ecosystem. The recent linkage of
used for BRSR disclosure across different companies Regulatory Support philosophy and values that Things (IoT), Blockchain disruption in the banking through end-to-end Industry: efficiencies, being more UPI (India) – PayNow (Singapore)
adherence as a part of their and industries. foster a respectful and technology and Open Banking sector, and the rate of change New age technologies such as digitization. We have started environmentally friendly and cross-border real-time payment
Annual Reports which is Engaging with governments to harmonious coexistence with Internationalization APIs in addition to Cloud. is accelerating. In today’s Artificial Intelligence (AI) and working on the next 1. Climate Change: The effects retaining existing customers while system is just one of the initiatives
already mandatory for the Promoting ESG create an enabling regulatory nature and its resources. With scenario, differentiated and Machine Learning (ML) are generation of YONO, which of climate change are becoming growing new ones to make business in this direction to offer cheaper,
leading 1,000 listed entities Integration in environment that encourages this philosophy and values In this digital era, in order to delightful customer radically shifting the way envisages to be a total more frequent and serious. operations greener. In order to take faster, and safer cross-border retail
based on market Decision-Making companies to adopt and India is well placed to lead the sustain competitive edge and experience has become more banks are working today. With revamp of YONO not only in Customers are expecting banks advantage of these benefits, banks payments and remittances for both
capitalization. Notably, SEBI implement high-quality G20 and global agenda of leadership position, important than just providing powerful AI tools, banks are terms of features and to embrace environmental and financial institutions of all shapes businesses and individuals, directly
has now outlined that Beyond reporting, the B20 sustainability reporting sustainability. characteristics such as basic financial services. The able to make informed functionality, but also in terms commitments to mitigate the and sizes must incorporate between bank accounts or e-wallets.
impacts of climate change. Banks
commencing from the could encourage businesses standards. providing a wide range of traditional banking model is decisions faster by using of ease of use and customer have a responsibility to reduce Environmental, Social and Corporate The facility is expected to benefit
financial year 2023-24 to integrate ESG services to customers, being reimagined as predictive analysis, improve experience. The focus of the both their direct and indirect Governance (ESG) into their the Indian diaspora to carry out
foremost 150 listed entities considerations into their As a key partner for B20 Competitiveness The competition is just not fulfilling and exceeding clients' innovations in technology customer service next generation of YONO carbon footprint. Direct business strategies holistically and quick and cost-efficient money
shall mandatorily undertake strategic decision-making India, The Institute of between private and public expectations and providing a continue to redefine what it tremendously and also offer shall be on customer-centric emissions relate to a bank's make sure that sustainability is transactions. Banks in India are
reasonable assurance of the processes. This would involve Chartered Accountants of sector banks but also with modern and intuitive mobile means to be a financial tailor-made solutions to design, Hyper- personalized internal operations, staff and prioritised across all areas of the collaborating and partnering for
BRSR Core, which will recognizing the business value India (ICAI) is a member of T he process of banking other FinTechs, InsurTechs, experience to users are institution and Banks have customers. The introduction experience, innovative offices. Indirect emissions from bank, both internally and externally. faster payment rails like Unified
gradually to be adopted by all of sustainability and its the ESG Action Council and digitalization has become and BigTech firms who are crucial. Clearly, banks that are of Chatbots are helping banks product offerings, banking activities include funding Payments Interface (UPI) in the
oday the world is performance by companies. potential to drive innovation, actively engages in diverse an integral part of the expanding their financial been increasingly leveraging
concerned about India, as a growing economy is 1000 companies by the risk management, and policy-making endeavors strategic plans and decisions services offerings, leveraging investing in customer technology to provide a to reduce time and effort of modernization of tech stack, (through loans) businesses that cross-border payment ecosystem,
environmental and social taking major steps to 2026-27. long-term resilience. within the B20 framework. for majority of banks. There new technologies, and are experience are seeing a larger better customer experience. human capital and provide and leveraging AI/ML, Cloud actively contribute to the climate Internationalization which has a potential to significantly
impact made by businesses. strengthen sustainability The ICAI has been actively has been an accelerated gaining market share in-line wallet share, higher rates of quick and consistent service and Data Analytics for digital crisis. increase the accessibility of
The future of global economy reporting framework. The Furthermore, disclosure of Stakeholder Engagement promoting sustainability progress in digital with emerging business recommendations and are Today, digitalization & digital and at the same time save transformation in order to 2. Reputation: Consumer cross-border payments, reduce
lies on the path of sustainable evolution of sustainability ESG aspects within the value reporting in India through technologies, which inevitably models. Banks are also trying more likely to up-sell or innovations have become a huge operational costs. benchmark YONO with the demands are a major driver for Globalization has increased costs and simplify the entire
development, as it is reporting, from an voluntary chain will be obligatory for Emphasizing the importance various initiatives. One of the led to an increase in to reorient themselves by cross-sell products and strategic priority for the Further, a number of industry best of Global/ Indian digital more sustainable banking international trade and allows cross-border person-to-person
paramount to bring activity to a structured and the foremost 250 listed of engaging with stakeholders, leading initiatives was competition in the field of setting up large innovation services to existing banking industry. There is a level technological & other banking propositions. operations. The next generation companies to connect stronger with (P2P) payment process.
Environmental, Social and standardized practice, reflects entities commencing from the including investors, employees, establishment of Sustainability financial services. All banks departments, new fintech customers. deep realisation among banks critical industry changes like of consumers is also demanding consumers and partners across the
Governance (ESG) the commitment of the nation financial year 2024-25, on a communities and customers Reporting Standards Board are striving to adopt new strategies and a change in that the scale and adoption of emergence of FinTechs and that banks place greater globe. As a result, the world has Another innovation that is driving
consideration as the focal to the cause. comply-or-explain basis. These to understand their concerns (SRSB) in 2020, with the aim technologies as soon as culture to adapt to the Banks that can design their digital transformation needs Neo Banks, Seamless Sustainability emphasis on going green. Banks witnessed more competition and internationalization is usage of Block
point of financial reporting to disclosures of value chain will and expectations regarding of formulating comprehensive, possible and to introduce operations, processes and to take a quantum jump to Onboarding based on Video with weak sustainable targets companies look for new chains in payments. With blockchain,
counter climate change and also require limited assurance sustainability performance. globally comparable, and new digital products. By now, strategies with clarity in the keep pace with the new KYC, Digital Lending, The banking industry in India risk facing public criticism. opportunities outside its own payments are set to be low-cost,
make earth a better place for from 2025-26. These steps understandable standards for it is imperative that banks direction, speed and agility of technology paradigm. Banks AI/Machine Learning, has a positive influence on the borders to stay competitive. Banking secure and processed quickly, overall
all. would mandate the industry Integrating Technology that are focusing on digital execution, while keeping that have digital frameworks Analytics, Big Data, Blockchain country’s socio-economic 3. Technological industry is also experiencing high facilitating money transfer regardless
to make committed transition and Innovation measuring and disclosing customer at the centre, can in place and are part of wider and Cloud will continue to be progress and development advancements: Growth in competition due to digital of the distance between the sender
towards sustainability non-financial information functionalities have a greater capitalize on the current shifts the biggest transformational innovative technologies is a technologies. and receiver. Distributed Ledger
Sustainability reporting The B20 could explore how about an entity’s progress chance of increasing revenues digital ecosystems have a and have an important role to
standards is a significant topic reporting. These technology and innovation towards the United Nations and achieve reduction of in the market and have a clear clear competitive advantage enablers that will encourage play in leading the financial golden opportunity for banks to Technology (DLT) and blockchain
of discussion within the B20 developments indicate can be leveraged to improve SDG 2030. The ICAI has costs. competitive advantage over with continued agility, banks to not only achieve services ecosystem towards build on sustainable digitisation. With global economies becoming have developed considerably in
Banks should leverage digital
and the broader business regulators resolve towards sustainability reporting developed Standard on other players in the market. innovation, and digital core technological sustainability. Sustainable technologies to drive sustainable increasingly connected, there is features and complexity to offer
community. These standards adopting and put in place Modernization of technology transformation. transformations but also banking is a win-win for both outcomes. Some of the initiatives growing demand for a fast, secure seamless payment solutions
focus on the transparency and at banks is also no seamlessly reinvent the user financial institutions as well as to drive such change includes and efficient cross-border payments (including Cross border payments)
disclosure of ESG longer wishful thinking but is BigTechs / FinTechs have experience. the industries and the intelligent automation, system. The cost and speed of to both retail and corporate
taking place rapidly across the emerged as successful players economy. For a successful delivery strongly influence the customers.
industry. The competition in and are now competing with In SBI, it has been our sustainability transformation digitisation of paper processes customer’s final selection of
banking is expected to continuous endeavour to and machine learning. payment mode. Faster, cheaper, more
Mr Dinesh Khara, Chairman,
State Bank of India (SBI)

36 ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY 37
QUARTERLY JOURNAL OF ECONOMICS
QUARTERLY JOURNAL OF ECONOMICS
SEPTEMBER 2023 SEPTEMBER 2023