Bank of Baroda digitization push

Bank of Baroda (BoB) has thrown a wide net in the digital environment, defying the image of public sector banks, which typically have a highly clumsy online presence. For borrowers to have a seamless banking experience, this Mumbai-based bank offers more than 100 digital interfaces and has more than 18 fintech collaborations. And the numbers support that. Through its online lending platform, the bank approved loans totaling Rs 37,000 crore in FY22. And currently, 84% of its retail loan volume is sourced from the platform.

BoB asserts that digital lending has aided them in achieving a lead-to-conversion ratio of 29% for retail loans, and it now plans to disburse Rs 75,000 crore through the platform for digital lending in FY23. “Our share of the digital market is excessive. A natural market share of 6% belongs to us. However, it is only approximately 12% in the digital space, according to the bank’s chief digital officer, Akhil Handa. The Best Bank in Fintech Initiative award was given to it by the BT-KPMG Best Banks and Fintechs Survey 2021–22 panel as a result of its performance in the digital transformation.

The “bob World” app from BoB, a financial super-software that allows for not just banking but also investing and shopping, serves as the company’s customer-facing interface. The bank also collaborates with e-commerce websites. The number of active users on its digital platforms increased to approximately 20 million in FY22 because to such diverse digital offerings.

Bank of Baroda

Additionally, the bank offers a digital platform that makes it easier to co-lend with NBFCs. This platform performs credit assessment checks while also streamlining and accelerating the co-lending process in industries including retail, MSME, and agribusiness.

Along with home loan top-ups and renewal of small-ticket MSME loans, BoB is expanding its digital solutions to include pre-approved loans for two-wheelers, autos, education, and homes. Since historically personal loans were not a focus area, we will significantly boost them overall. In the larger retail lending area, we are developing eight new product lines. The pre-approved product lines will be expanded, and we will handle top-up loans entirely digitally, according to Handa.

By agreeing to share their financial information with the bank through the account aggregator (AA) network, where BoB just went live, consumers may now also apply for a digital personal loan. Other lending products will also be merged with personal loans after personal loans.

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