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Summary
Analysing Digitalisation Journey of SBI
Enterprise Systems in Digital Age
FT- MBA, TRIM III - 2023-24
Company:
13
State Bank of India
The Digital Transformation Journey of State Bank of India
FINAL REPORT
GROUP V
GROUP DETAILS:
Name Roll Number SAP ID

Abhinav Kumar F015 80512300197
Deepen Gondolay F037 80512300496
Neha Krishna F041 80512300561
Kavish Singhania F048 80512300901
Tanvir Singh F059 80512301107
Kaushik Appala F068 80512301374
Dated 10th March, 2024

Course Facilitator: Dr. Somnath Roy
2
Enterprise Systems in Digital Age Page|1
Table of Contents
Contents
Executive Summary ................................................................................................................................. 4
Introduction ............................................................................................................................................ 5
Background ......................................................................................................................................... 5
Purpose of the Report ......................................................................................................................... 5
Scope and Objectives .......................................................................................................................... 5
Company Overview: State Bank of India (SBI) ........................................................................................ 5
Brief History and Evolution ................................................................................................................. 5
Current Position in the Financial Industry ........................................................................................... 5
Significance of Digitalization in Banking .............................................................................................. 6
1 Convenience and Accessibility ................................................................................................ 6
2 Enhanced Customer Experience ............................................................................................. 6
3 Operational Efficiency ............................................................................................................. 6
4 Financial Inclusion ................................................................................................................... 6
5 Innovation and Growth ........................................................................................................... 6
Scenario Before Digitalization ................................................................................................................. 6
Foundation of Execution before Digitalization .................................................................................... 6
1 Core Processes ........................................................................................................................ 7
2 Standardization and Integration Requirements ...................................................................... 7
Drivers of Digitalization ....................................................................................................................... 7
1. Operational Problems ............................................................................................................. 7
2. New Business Opportunities ................................................................................................... 7
3. Competitive Pressures ............................................................................................................ 7
4. Customers’ Expectations ......................................................................................................... 7
Scenario After Digitalization .................................................................................................................... 8
New Technologies Implemented ......................................................................................................... 8
1. Cloud Technology Solutions .................................................................................................... 8
2. Analytics Implementation ....................................................................................................... 9
3. Adoption of AI and ML ............................................................................................................ 9
Key Digitalization Initiatives ................................................................................................................ 9
1. YONO Platform ........................................................................................................................ 9
2. Wealth Management and Superior CBS: ................................................................................ 9
3. Prudence in lending ................................................................................................................ 9

Benefits Accrued After Digitalization .................................................................................................. 9

1. Quantifiable Benefits ............................................................................................................ 10
2. Stakeholder Expectations ...................................................................................................... 10
Future Roadmap ............................................................................................................................... 10
1. Tracking New Technologies ................................................................................................... 10
2. Group's Suggestions and Thoughts ....................................................................................... 10
Bridging the Gap ................................................................................................................................... 12
Organization's Path to Digitalization ................................................................................................. 12
1. Phases in Digitalization Journey ............................................................................................ 12
Team Structure for Digitalization ...................................................................................................... 13
Responsibilities of Different Teams ................................................................................................... 13
Complexity of Technology Implementation ...................................................................................... 14
1. Technical Issues ......................................................................................................................... 14
2. Regulatory Challenges ........................................................................................................... 15
3. Human Aspects ..................................................................................................................... 16
4. Other Influencing Factors ...................................................................................................... 16
Overcoming Challenges..................................................................................................................... 17
1. Solutions to Technical Issues ................................................................................................. 17
2. Regulatory Compliance Strategies ........................................................................................ 18
3. Addressing Human and Social Factors .................................................................................. 19
Conclusion ............................................................................................................................................. 22
Summary of Findings......................................................................................................................... 22
Implications for the State Bank of India ............................................................................................ 22
Lessons Learned ................................................................................................................................ 22
References ............................................................................................................................................. 22
Primary Sources ................................................................................................................................ 22
Secondary Sources ............................................................................................................................ 22
Appendices ............................................................................................................................................ 23
Additional Data & Charts .................................................................................................................. 23
Supplementary Information .............................................................................................................. 24

Division of Work
Serial No Topics Students Involved

1 Introduction Abhinav Kumar and Deepen Gondolay
2 Company Overview: SBI Kaushik Appala and Tanvir Singh
3 Scenario Before Digitalization Abhinav Kumar and Kavish Singhania
4 Scenario After Digitalization Kaushik Appala and Deepen Gondolay
5 Bridging the Gap Neha Krishna and Tanvir Singh
6 Conclusion Neha Krishna and Kavish Singhania
Executive Summary
8
The report provides an introduction of the digitalization initiatives of the State Bank of India
(SBI), the biggest public sector bank in India. It probes SBI's background, its present position
in the monetary market and its recurring journey in the direction of digitalization. The report
covers the transformative effect of digitalization on SBI's procedures and also client
experience, highlighting the advantages together with obstacles experienced. It likewise
provides suggestions to enhance SBI's electronic footprint along with guarantee success in the
ever-evolving monetary landscape.
The report covers numerous elements of SBI's electronic improvement, consisting of the
historic advancement of the financial institution, the importance of digitalization in financial,
the situation prior to as well as after digitalization, along with the implications for SBI. It
likewise reviews the innovations executed, advantages built up and the future roadmap for
SBI's integration into the digital world. Furthermore, the report deals with regulative
conformity techniques, staff member training as well as growth, partnership with organizations
and also the financial institution's dedication to monetary incorporation as well as customer-
centric electronic campaigns.
The report attracts understandings from main and also additional resources consisting of
meetings with essential stakeholders at SBI as well as offers a comprehensive evaluation of the
financial institution's electronic campaigns such as wide range administration, remarkable Core
Banking Solution (CBS). It likewise highlights the financial institution's initiatives to attend to
affordable stress, client assumptions, as well as the requirement for effective and also safeguard
electronic financial solutions.
Overall, the report provides a detailed as well as informative evaluation of SBI's digitalization
journey, offering suggestions to reinforce the financial institution's initiatives and improve its
standing with numerous stakeholders.

Introduction
Background 8
This report provides a comprehensive overview of State Bank of India (SBI), the largest public
sector bank in India. It explores SBI's rich history, its current position in the financial industry,
and its ongoing journey towards digitalization.
Purpose of the Report 15

This report delves right into the journey of State Bank of India (SBI), India's biggest public
sector bank. We study its abundant background, analyzing its advancement as well as
development within the vibrant Indian financial landscape. The lens of digitalization guides
our evaluation as we analyze its transformative influence on SBI's procedures and also client
experience. We brighten the advantages together with difficulties experienced throughout this
electronic trip leading the way for informative referrals. Eventually our goal is to equip SBI
with the expertise as well as instructions to additional reinforce its electronic technique, as well
as strengthen interaction with its varied stakeholders.
Scope and Objectives

Our emphasis develops on key departments to paint a thorough image of SBI's digital
transformation. We map its historic origins and also focus on its digital milestones. The record
after that takes a look at SBI's existing market setting together with the diverse tapestry of
solutions it uses. We explore the issue evaluating the extensive effect of digitization on its
procedures coupled with client experience. Both the incentives along with barricades
experienced throughout this trip are offered. Ultimately, we chart a future plan, supplying
suggestions to solidify SBI's electronic technique as well as guarantee proceeded success in the
ever-evolving economic landscape.
Company Overview: State Bank of India (SBI)

Brief History and Evolution
7
The State Bank of India (SBI) was established on July 1, 1955, through the merger of the Bank
of Bombay,
12
Bank of Madras, and Bank of Calcutta. Its roots, however, trace back to the early
19th century with the establishment of the Bank of Calcutta in 1806. Over the years, SBI has
played a pivotal role in the development of the Indian banking sector, evolving into the largest
public sector bank in the country. The bank's history is marked by mergers, expansions, and a
commitment to serving the diverse financial needs of the nation.
Current Position in the Financial Industry

SBI reigns supreme as the undisputed king of Indian banking, commanding a quarter of the
market share in both assets and loans. Its vast network of over 22,000 branches and 65,000
ATMs blankets the nation, serving over 480 million customers, a staggering number that speaks
volumes about its reach and trust. Beyond sheer size, SBI boasts a diversified portfolio

encompassing personal banking, corporate banking, insurance, mutual funds, and wealth
management, making it a one-stop financial supermarket for its clientele.
Significance of Digitalization in Banking

1 Convenience and Accessibility
Digital banking supplies clients with 24/7 accessibility to their accounts permitting them to
execute purchases at their covenience, and take care of funds as per their needs.
2 Enhanced Customer Experience

Customers are able to get personalised recommendations, and they can track transactions in
real time. SBI is leveraging AI and Machine Learning to understand their customers better and
improve digital profiling of customers for better targeting.
3 Operational Efficiency
Automation has become essential in the financial industry. Repeated jobs like account opening
KYC confirmation along with car loan applications are being automated, lowering functional
expenses along with liberating personnel for even more value-added solutions.
4 Financial Inclusion
Reaching the unbanked and underserved population is an essential obstacle in India. Digital
banking with its low-priced facilities as well as mobile-first technique holds the solution to
economic addition. By extending standard financial solutions like repayments, financial
savings as well as microloans with mobile budgets to the rural and unbanked population, it is
reaching the last mile.
5 Innovation and Growth

The digital landscape is full of innovation and sandboxes for experimenting with new products.
Fintech start-ups are continuously testing new products and also SBI is proactively
collaborating with them to create cutting-edge services. From blockchain-powered profession
financing to AI-driven scams discovery, the opportunities are unlimited.
Scenario Before Digitalization

While SBI had already embarked on its digital transformation journey, the Covid-19 situation
emphasized the critical role of digitalization. The bank's Chief Information Officer (CIO), Mr.
Pai, highlighted that digitization became essential not just for convenience but as a fundamental
way of conducting transactions for both customers and employees. This underscored the
evolving perception of digitalization as a necessity rather than a choice.
Despite the strides made in digitalization, challenges persisted, particularly in remote or

challenging geographic areas. The bank acknowledged that digitalization efforts were
constrained by the lack of available connectivity in these locations, necessitating the continued
use of alternative technologies like VSATs. The importance 17
of digitalization was further
emphasized by the bank's commitment to transforming itself into a digitalized organization,
supported by technology-enabled backend operations.
Foundation of Execution before Digitalization

1 Core Processes
Before digitalization, SBI's core processes were heavily reliant on manual paperwork and face-
to-face interactions. For instance, account opening procedures required customers to physically
visit a branch, fill out forms manually, and provide hard copies of identification documents.
Also Mr. Mukesh mentioned "Our core processes were labor-intensive and time-consuming,
with paperwork being a significant part of everyday operations"
2 Standardization and Integration Requirements

SBI's operations lacked standardization and integration across different branches and departments. Each
branch might have had its own unique way of handling processes and data, leading to inconsistencies in
service delivery. "We faced challenges in standardizing processes across our branches, leading to
inefficiencies and varying service quality" said Mr. Mukesh.
Drivers of Digitalization
1. Operational Problems
Manual processes and paperwork led to operational bottlenecks, affecting the overall efficiency
of the bank. Mr. Mukesh Ranjan mentioned, “Majority data was on paper which led to delays
in verification process and matching data. This ultimately caused delay in providing financial
services.”
2. New Business Opportunities

The recognition of untapped potential in digital channels for expanding services and reaching
a wider customer base.
3. Competitive Pressures
The need to stay competitive in an industry undergoing rapid technological advancements. Mr.
Mukesh also mentioned that “Had SBI started transformational journey when other competitors
did, SBI would have had an unparalleled advantage as they had huge customer data and banking
infrastructure.”
4. Customers’ Expectations:
Growing demands for convenient and digital banking experiences, reflecting the changing
preferences of customers. “In India people look for more fast and safe option when comes to
banking services”, Said Mr. Mukesh, “And SBI has had issues with providing faster services
that was only possible with digitalisation”.
Primary Research
Interviewee – Mukesh Ranjan
Accomplished banking professional with over 20 years of experience in varied sector including
Retail Banking, Branch Management, Credit Management of Mid Corporate, Planning for
International Banking Human Resource Management, Learning & Development, and an
established track record to perform under complex situations within given timeframe.

Scenario After Digitalization

SBI underwent a significant digital transformation, marked by the launch of various initiatives
aimed at revolutionizing the banking experience for both customers and internal operations.
New Technologies Implemented
1. Cloud Technology Solutions

The Bank has a cloud technology in place to handle digital traffic. Its private cloud is called
‘Meghdoot’ which was launched in 2012. There are multiple critical business services which
are leveraging Cloud Computing services -
SBI Kiosk Banking Application - A front office application for Financial Inclusion is
accessed by 60,000+ strong BC network of SBI to service the banking needs of customers
where branches are not closest or accessible to the customers for their day to day financial

needs. At any point of time about 20,000 BCs pump the transactions on this cloud hosted
application.
SBI Exclusif - SBI Wealth Management Services are hosted on Meghdoot.
2. Analytics Implementation
Data analytics play an important role in the banking sector. SBI uses minute data points
generated from its branches every day to find patterns to predict stress and pre-empt any
fraudulent activity.
3. Adoption of AI and ML
11
According to the Annual Report of FY23, SBI has deployed revolutionary technologies like
artificial intelligence (AI), machine learning (ML), and business analytics to expand its product
offerings and improve customer satisfaction. Further as per our interviewee Ms. Reena
Pursnani, the senior management personnel had regular conferences and 9meetings on the
advancement of AI and how it can be integrated in the Banks’ operations. AI and machine
learning helps banks identify fraudulent activities, track loopholes in their systems, minimize
risks, and improve the overall security of online finance.
Key Digitalization Initiatives
1. YONO Platform:
Launched during FY2018, YONO (You Only Need One) represented an omni-channel
digital platform, providing customers with a fully digital service experience. YONO
facilitated banking as well as lifestyle needs through an all-encompassing B2C
marketplace.
2. Wealth Management and Superior CBS:

SBI expanded its wealth management services, establishing dedicated centers and hubs
equipped with state-of-the-art technology. This allowed customers access to
comprehensive investment options and financial planning services. Further, every bank
is mandated to have its own ‘Core Banking Solution (CBS)’ to be better connected
across all branches over India. This is a significant step in digitalization, and according
to SBI – 98% of need-based selling is carried out digitally.
3. Prudence in lending:
SBI has developed software such as early warning signals on bad loans and fraud
prevention tools to bring more accuracy and prudence while making loans. As a result,
SBI’s loan portfolio is1 now much healthier since FY19, as stated by Rajnish Kumar,
Chairman of SBI. An application has also been developed for digitalisation of Wilful
Default examination process for better monitoring and achieving operational
excellence.
Benefits Accrued After Digitalization
 Improved Customer Experience: Digital services, including video statements, e-Wealth

centres, and mobile app access, provided a more convenient and user-friendly
experience for customers.

 Efficiency Gains: Automation of internal processes and the adoption of new

technologies streamlined operations, reducing costs, and increasing efficiency.
 Financial Inclusion: Initiatives like SBI FASTags and the SARVATRA Card aimed to
enhance financial inclusion and provide seamless payment options for customers.
1. Quantifiable Benefits
 Cost Reduction: Automation of processes and the adoption of digital channels have
led to operational cost reductions.
 Increased Efficiency: As per the Annual Report of SBI, FY23 – the bank has
sanctioned leads worth Rs. 2,900 crores through its Contactless Lending Platform
(CLP), thus increasing efficiency for all employees.
 Customer Growth: The convenience of digital banking has attracted new
customers, contributing to an increase in the customer1 base. Pre-Approved Business
Loan (PABL) through the SBI YONO Business app has recorded a YoY growth of
926% to `3,558 Crore in FY2023.
 Increased revenue generation: Growth in cross-selling and upselling of financial
products. It has automated its ‘no frills’ accounts so it incurs 20% less operational
costs.
2. Stakeholder Expectations
 Customer Satisfaction: Digital services have enhanced the overall customer

experience, leading to increased satisfaction.
 Employee Productivity: Employees benefit from streamlined processes and
improved tools, leading to increased productivity.
 Audit efficiency: The Bank’s Internal Audit (IA) department has developed an AI-
based software to better cross-check internal controls, thus helping stakeholders
(government bodies, audit firms and investors) with comfort of tech-driven human
judgement.
 Regulatory Compliance: Digitalization has facilitated better compliance with
regulatory requirements through enhanced data management and reporting
capabilities.
Future Roadmap
1. Tracking New Technologies
As per the annual report of FY2022-23, SBI is committed to staying ahead of the curve and
keep innovating. The bank tracks emerging technologies such as blockchain, quantum
computing, and augmented reality to integrate their potential applications in the financial
sector. This proactive approach will ensure that SBI remains innovative and adaptable in the
rapidly evolving digital landscape.
2. Group's Suggestions and Thoughts
1. Customer Centricity:
Enterprise Systems in Digital Age P a g e | 10

 Develop hyper-personalized financial solutions: Go beyond basic demographics

and leverage AI/ML to understand individual needs and preferences. Offer
customized investment portfolios, loan options, and insurance plans.
 Invest in a robust feedback mechanism: Make it easy for customers to voice their
concerns and suggestions through the YONO app, social media, and dedicated
feedback channels.
 Prioritize user experience: Continuously test and improve the YONO app's
interface, ensuring it's intuitive, user-friendly, and accessible across various devices
and demographics.
2. Champion Open Banking:
 Establish APIs to share monetary information safely with third-party fintech

suppliers. This equips clients with broader options of monetary devices and also
solutions, cultivates technology, and also promotes competition.
 Collaborate with fintech startups to co-create cutting-edge economic services and

products. This leverages the dexterity of start-ups and the last mile connectivity of
SBI giving distinct solutions to varied consumer problems.
 Advocate for less stringent regulations that promote information privacy as well
as protection. This makes sure ethical use of data and no malicious use.
3. Focus on Financial Inclusion:
 Rural areas need options with low internet connectivity: Adopt SMS-based banking,
offline wallets, and partnerships with local stores for cash deposits and withdrawals.
 Adopt financial literacy programs towards unbanked and underserved populations:
Educate them about digital banking tools, basic financial literacy concepts, and
responsible borrowing practices.
 Develop the YONO App interface for use in vernacular languages: Provide access
to banking services in regional languages. This will help break down language
barriers and increase SBI’s reach and reputation.
4. Embrace Responsible AI and Data Governance:
 The Bank must implement responsible code of conduct for AI: Develop guidelines
for AI and ML use, ethical boundaries, code of conduct, bias detection, and explain
ability of AI-driven decisions.
 Data security and privacy are integral to growth: Invest in robust cybersecurity
measures, conduct security auditing, and ensure clear communication about data
usage with customers.
 Establish a framework for good governance: In terms of data, ownership and usage
should be clearly defined.

Interviewee – Reena Pursnani

Designation: Deputy General Manager (DGM), Retail Banking – Mumbai
Bridging the Gap
Organization's Path to Digitalization
The journey toward digitalization at SBI involved several strategic steps to bridge the gap
between traditional banking and a technologically advanced future.
SBI employs technology comprehensively across its value proposition, encompassing aspects
such as business operations,
1
product design, process optimization, delivery enhancement, and
monitoring. Numerous initiatives have been introduced to develop an SME portfolio with a
focus on risk mitigation, and substantial changes have been made to enhance the ease of
banking. YONO Business serves as a comprehensive solution for corporate banking needs,
functioning as a one-stop platform for customers.
1. Phases in Digitalization Journey
i. Initial Phase: Introduction of Middleware to establish Two-Step Architecture
In the initial phase of the digital transformation journey, the bank took a crucial step by
introducing middleware to establish a two-speed architecture. This involved the
implementation of Enterprise Service Bus Architecture, hosting service-oriented
application interfaces and microservices. The integration of microservices and Service-
Oriented Architecture (SOA) was applied in the API layer surrounding the core banking
system, representing a substantial technological shift aimed at enhancing agility.
ii. Next Phase: Software Upgradation

When asked about the software-related measures taken to modernize the bank, Shiv
Kumar Bhasin, the former CTO, explained that they created components and modules
for the Core Banking System (CBS) while developing an SOA within the microservices
layer. The CBS, initially a large monolithic architecture in COBOL, underwent a
transformation by segregating modules such as customer payments, charges and
commissions, product pricing, product modules, KYC maintenance, and compliance
checks like Anti-Money Laundering (AML) and name screening systems. This modular
approach ensured scalability and speed, facilitating swift implementation of changes
without impacting the entire CBS.
iii. Third Phase: Foundational Infrastructure:
The establishment of a private cloud running on VMWare, recognized as the largest

BFSI Cloud with close to 15,000 Virtual Machines (VMs), played a pivotal role in
introducing agility to business projects and processes. The deployment time for
infrastructure procurements significantly reduced from 8 to 9 months to a remarkable
10 to 12 minutes. This achievement was realized through incremental steps, initially
reducing to 12 to 15 days through simplification and streamlining of paper-based
processes. Subsequently, further simplification and digitization led to real-time
fulfilment of cloud demands, ultimately reducing the procurement time to just 1 hour.
Team Structure for Digitalization
Information and Communications Technology (ICT) Team at SBI:

5
By Function: Communications, Data Center, Network,
Application, End-User Computing, Service
Desk, and Management
By Channel: Internal Development and Maintenance,
Technology Vendors (Direct), Local
Resellers, Telcos, ICT Services
Providers/Consulting Firms, Specialist
Outsourcers, and Systems Integrators
By Segment: ICT services, Software (including Cloud
SaaS), Hardware (including Cloud Iaas),
Network and communications, Consulting,
and Others
Technology Theme Focused: Artificial Intelligence, Big Data, Block
chain, Cybersecurity, and Payments
Responsibilities of Different Teams
1. Digital Transformation & e-Commerce Department:

 Defines and communicates the overall digital transformation strategy and roadmap.
 Sets priorities and allocates resources across different digital initiatives.
 Tracks progress, measures success, and makes adjustments to the strategy as needed.
 Governs data management, security standards, and technology architecture.

 Fosters collaboration and knowledge sharing across different teams.
2. CTO:
 Provides leadership and vision for the digital transformation journey.
 Represents SBI in industry forums and collaborations.
 Advocates for digital adoption within the bank.
 Reports to the CEO and Executive Board on the progress of digital initiatives.
3. Innovations Team:
 Researches and identifies emerging technologies relevant to SBI's digital strategy.
 Evaluates the potential applications of these technologies within the bank.
 Develops proof-of-concept pilots and experiments with new technologies.
 Collaborates with other teams to integrate new technologies into existing products and
services.
4. Cybersecurity Team:
 Protects SBI's digital platforms and data from cyberattacks.
 Implements and maintains security controls and protocols.
 Conducts regular security audits and penetration testing.
 Responds to security incidents and vulnerabilities.
5. Data Analytics Team:

 Collects, analyzes, and interprets customer data to gain insights.
 Uses data to personalize customer offerings and improve decision-making.
 Develops data-driven models for fraud detection, risk management, and marketing
campaigns.
6. HR & Training:
 HR & Training and Development Centres empower the employees to embrace digital
technologies and actively contribute to the bank's digital transformation journey.
 This ensures a skilled and adaptable workforce that can drive innovation, enhance
customer experience, and propel the bank towards future success in the digital era.
Complexity of Technology Implementation
1. Technical Issues
14
1. Legacy Systems Integration: Integrating new digital solutions with existing legacy
systems can be a significant hurdle. Data might be incompatible across platforms,
leading to disruptions.
2. Data Security: Robust cybersecurity practices are important for protecting sensitive
customer data. The risk of data corruption and cyber-attacks can result in financial as
well as reputational problems.
3. Scalability Issues: Any type of organization adapting electronic services requires to

have the ability to deal with raised purchase quantities as well as individual website
traffic. Inadequate scalability might cause system downtimes reduce reaction times
plus jeopardized individual experience.

4.
5. Mobile App Performance: Any company on its path to digital transformation needs
to ensure optimal performance and reliability of mobile applications, considering
diverse device specifications and operating systems. Poor app performance may result
in user dissatisfaction and decreased usage.
6. Real-time Processing: The organisation needs to ensure real-time processing

capabilities for transactions, data updates, and customer interactions. Delays in real-
time processing can lead to outdated information, impacting decision-making and
customer experiences.
7. Mobile Payment Security: Vulnerabilities may result in financial fraud and erode
customer trust in digital payment systems.
8. Data Migration Challenges: Migrating vast amounts of historical data to new digital
platforms without compromising accuracy is of utmost importance. Data
inconsistencies and errors may arise during migration, impacting the reliability of
digital systems.
2. Regulatory Challenges
1. Data Privacy and Security Regulations:
Challenge: Compliance with stringent data protection laws and regulations to ensure
the privacy and security of customer information.
Impact: Non-compliance may result in legal consequences, reputational damage, and
loss of customer trust.
10
2. Anti-Money Laundering (AML) and Know Your Customer (KYC) Compliance:
Challenge: Adhering to evolving AML and KYC regulations while implementing

digital onboarding processes.
Impact: Non-compliance may lead to legal penalties and reputational damage, with
potential disruptions to customer onboarding.
3. Consumer Protection Regulations:
Challenge: Ensuring compliance with consumer protection laws and regulations in the
digital financial services space.
Impact: Violations may lead to legal actions, financial penalties, and damage to the
company's reputation.
4. Payment Regulations:
Challenge: Complying with regulations related to digital payment systems, including

real-time gross settlement (RTGS) and immediate payment services (IMPS).
Impact: Non-compliance may disrupt payment services, leading to financial losses and
regulatory penalties.

5. Cybersecurity Standards:
Challenge: Meeting regulatory expectations for robust cybersecurity measures to

protect against cyber threats.
Impact: Cybersecurity breaches may lead to regulatory investigations, financial losses,
and damage to the company's reputation.
3. Human Aspects
A. Customers:
In the digital landscape, there are 4 customer segments.
 First the electronically indigenous people who perform all tasks via their cellphones,
social media sites or under peer pressure.
 Secondly, the digitally migrant group, typically aged between 35 and 50, embraces
digital technologies but at a gradual pace, favouring a hybrid mode.
 The 3rd classification electronic fence-sitters includes people that have actually
achieved monetary success however stay unpredictable regarding embracing
technology and are reluctant.
 Lastly, the digitally averse, seeking an assisted person or instrument for their banking
needs. Examples are pensioners who prefer visiting branches, conversing with branch
managers, and availing pension services, believing that in-person is the best experience.
Given the diverse range of customers at SBI, spanning ages 18 to 108, the approach to
technology needs to be versatile, accommodating 3-4 variations of the same technology.
B. Employees:
The age range of employees, spanning 20 to 60, adds another layer of complexity. Managing
the rapid pace of technological advancements poses a significant challenge, requiring effective
change management and strategic rollout planning. Simplicity and intuitiveness in the user
interface, modeled after platforms like WhatsApp, are key focuses to ensure that applications
are accessible even to those unfamiliar with advanced technology.
4. Other Influencing Factors
1. Digital Convenience: Customers increasingly demand seamless and convenient digital

banking services, including online account access, mobile banking, and digital payment
options.
2. Personalization: The desire for personalized financial services and targeted offerings
tailored to individual needs encourages companies to invest in digital solutions.
3. Fintech Disruption: The rise of fintech startups introduces innovative digital solutions,
compelling traditional BFSI companies to adapt and innovate to stay competitive.
4. Cost Reduction: Digitalization enables streamlining of processes, reducing operational

costs through automation, and improving efficiency.

5. Faster Transactions: Digital processes facilitate quicker transaction processing,

reducing turnaround times and enhancing overall operational speed.
6. Compliance Requirements: Regulatory bodies often encourage or mandate digital

initiatives to improve transparency, reporting, and adherence to compliance standards.
10
7. Acceleration Due to COVID-19: The COVID-19 pandemic has accelerated the
adoption of digital channels as remote work and social distancing measures became
prevalent.
Overcoming Challenges
1. Solutions to Technical Issues
A. Network Connectivity:
Usually, for any company turning digital, the focus often remains on urban and semi-urban
areas where robust network connectivity is assumed. However, SBI took a different approach,
acknowledging that reliable connectivity is not universally available, especially in remote or
hilly regions. To overcome this challenge, SBI utilizes VSATs (very small aperture terminal)
for servicing not only ATMs but also branches.
The bank conducts rigorous process testing for its banking apps, ensuring they undergo testing
not only in the bank's standard bandwidth setup but also on setups with lower bandwidth, such
as a 64-kbps line or a VSAT line.
This comprehensive testing approach aims to guarantee the delivery of services to customers
irrespective of their location. In addressing connectivity issues, SBI strives to equip every
branch with two connections from different service providers, ensuring the availability of a
backup line if any issues arise with the primary line. This strategy helps the bank overcome
challenges associated with connectivity, ensuring a more robust and reliable network
infrastructure.
B. Initiative “Digital Bank”
At SBI, the organization is engaged in a significant project3 known as 'Digital Bank.' This
initiative involves the creation of three distinct streams: an online marketplace, a financial
superstore, and end-to-end digitization. Across these areas, approximately 300 journeys have
been defined, encompassing tasks such as customer account opening, address management,
money transfers, property purchases, and more. The focus is on thoroughly re-orchestrating
processes to provide customers with an omni-channel and self-service experience.
C. Initiative “Office 365”

3
Another noteworthy project is titled 'Office 365,' representing the world's largest deployment
in terms of user numbers,
3
with 150,000 people already benefiting from it. This project involves
a complete shift to a web-based and cloud-based solution, making SBI the first bank to embrace
the 'public cloud.' The 'Branch Virtualization' project aims to eliminate the need for individual

servers in each branch, opting instead for cloud-based applications accessible through
terminals.
D. CRM:
3
SBI is in the process of implementing 'Customer Relationship Management' software with an
end-to-end approach, offering a 365-degree view, comprehensive campaign management, lead
management, complaint management, and customer wallet share management. Internally,
integrated risk management is also being utilized. Each of these initiatives represents a
substantial investment, with each project valued in the multi-hundred crore range.
2. Regulatory Compliance Strategies
SBI's digital transformation journey adheres to various regulations set by the Reserve Bank of
India (RBI) and the Government of India, along with internal policies and best practices. Here's
a breakdown of the key regulatory aspects:
RBI Guidelines:
1. Cybersecurity Framework: This framework outlines security measures for banks' IT

infrastructure and data protection. SBI implements measures like honeypots, advanced
analytics, and AI-based fraud detection to comply.
2. Payment Regulations: These cover areas like mobile banking, online payments, and
digital wallets. SBI ensures its platforms like YONO and UPI transactions comply with
these regulations.
3. Data Privacy Regulations: The RBI guidelines on data privacy and security govern how
banks collect, store, and use customer data. SBI adheres to these guidelines to protect
customer information.
4. Know Your Customer (KYC) norms: These norms ensure customer identification and
verification for financial transactions. SBI follows KYC norms for digital onboarding
and transactions.
Government of India regulations:
1. Digital India Initiative: This government initiative promotes digital adoption across
sectors, including banking. SBI aligns its digital transformation efforts with this
initiative's goals.
2. Aadhaar Act: This act enables digital identity verification, which SBI leverages for e-
KYC and other services.
3. Data Protection Bill: Once implemented, this bill will set comprehensive data
protection regulations that SBI will need to comply with.
Examples of Regulations followed at and by SBI:

1
1. The integration of the FMR+FIR XML template into the UIDAI authentication process
for AePS, following UIDAI guidelines, was finalized on July 31, 2022. SBI achieved
the distinction of being the first large Public Sector Bank1 (PSB) to implement this
update. Furthermore, the integration of FRMPRM with the Kiosk Banking application
for real-time (RT) and near-real-time (NRT) transaction monitoring was successfully
accomplished on September 1, 2022.

2. In accordance
1
with the regulatory mandate from IRDAI, SBI has completely automated
the end-to-end encryption process for storing SBI Life and SBI General Insurance
Proposal Forms.
3. Addressing Human and Social Factors
Employee Centric:
A. Training and Development:
Dedicated training sessions are conducted for individuals at all organizational levels, utilizing
1
both the traditional classroom model and digital platforms. SBI provided an average of 37.26
hours of training per employee in 2020, and 75.56 hours of training per employee in 2023
1
which shows the commitment to move towards digitalization and the efforts taken for the same.
This has been accomplished through its six Apex Training Institutes (ATIs) and 51 State Bank
Institutes of Learning and Development (SBILDs).
B. Collaboration with Institutions:

1
SBI has partnered with the Indian School of Business to provide a carefully designed digital
leadership program for General Managers and Deputy General Managers. This initiative
empowers them to leverage their professional expertise in broader capacities and exposes them
to cutting-edge concepts in leadership research. 386 officers were trained under the Digital
Leadership program by ISB.
C. Microcapsules:
During the fiscal year 2023, SBI introduced various micro-learning initiatives called
microcapsules that incorporated digital and hybrid learning tools. These included a series of
brief snippets promoting general awareness in the BFSI sector titled 'Do You Know,' a micro-
knowledge series named 'Understanding Risk' focusing on risk management, as well as micro-
videos covering topics such as cybersecurity, providing valuable knowledge inputs for our
employees.
D. Certifications:
SBI also launched e-Role-Based certifications to ensure foundational domain knowledge is

uniform. Furthermore, it has commenced a targeted skills development program for recognized
'transitional roles' to enhance the integration of business-related skill sets.
E. Various Programs:
In addition to traditional instructor-led

1
classroom training, the dynamic nature of changes has
compelled the adoption of a digital approach for continuous reskilling. Some of the 1
popular
digital tools utilized by SBI include a virtual Case Study Discussion Board (with 1.11 Lakh
unique visitors) that facilitates online community-based discussions on real-life banking cases.
There is also My Quest Today, a daily quiz platform accessible
1
on the intranet (with 1.09 Lakh
participations in FY2023). Additionally, the bank utilizes Audio Podcasts on various banking
topics, such as SBSC-on-Air (featuring 119 episodes with 26,000+ cumulative listens),

Gurukul Vani (comprising 35 audio files on 1

credit, risk, and NPA with 97,000+ cumulative
listens), and Gyan Chetana (consisting of 6 episodes on HR matters with 640+ cumulative
listens). Furthermore, there is a gamified app called askSBI for assessing knowledge levels,
and a Google-like internal search engine where employees can raise questions and find related
responses. Lastly, Theme-based Fridays involve webinars hosted every Friday by the Apex
Training Institutes on a rotational basis, covering domain-specific topics.
Customer Centric:
1
A. Assisted Journey for NTB/NTCN/ETCB Customers:
The Assisted Journey allows operating functionaries such as RM (SME) team, field officers
and Branch Managers to initiate the CLP journey on behalf of the customer without needing
them to input any details. These can be uploaded directly on the portal.
B. Digital Initiatives:
1
1. SBI has simplified the e-VFS processes and built a new digital interface
“psbloansin59minutes.com” on CLP for improved customer experience. It has also
introduced Supply Chain Finance Centralised Processing Centres to reduce TAT for
proposal processing. 6
2. In its latest development, SBI has empowered its customers to conduct digital
collections using SBI Pay, a mobile-based payment solution leveraging the Unified
Payment Interface (UPI) system by the National Payments Corporation of India
(NPCI), and State Bank Buddy, seamlessly integrable with any corporate payment
1
interface.
3. IT has developed ‘SBIEasy ride’, an end-to-end digital product which enables two-
wheeler financing without the need to visit any 1branch for sanction or disbursement.
4. To enhance customer convenience in banking, your bank has implemented the V-CIP
digital
1
process, enabling the opening of accounts from the comfort of one's home.
5. For personal loan products, your bank has incorporated Digital Document Execution
into Xpress Credit loans, employing e-stamping and e-signature for immediate
document execution, prioritizing a customer-centric approach.
6. Digital Document Execution (DDE) encompasses the digital creation of contracts,
electronic
1
stamping, the use of e-signatures or their variations, in accordance with
relevant laws and through authorized government agencies. This ensures a secure and
precise recording of financial information, along with authentication and verification
of both the contents and the customer involved.
7. SBI has effectively implemented the ePA (Electronic Payment Advice) system for
digitally authorizing payments that originate from the Public Financial Management
System (PFMS).
C. Customer Channel Roopantar by TCS:
For the customers

4
of SBI, the 'Customer Channel Roopantar' by TCS introduced a range of
innovative initiatives:
 SBI Digi Voucher: This green banking initiative offers digital alternatives to traditional
paper vouchers through a multi-channel solution and a mobile app.
 SBI Video Statement: This feature provides animated and voice-guided customer-level
statements, enriched with analytics detailing customer spending patterns.

 SBI Scribe: This solution transforms non-digital data, such as handwritten text, into
digital data that is readable by the system. This
4
enhances efficiency in processes like
account opening and Know Your Customer (KYC).
 SBI Mingle: This solution facilitates access to banking operations directly from social
media platforms.
Primary Research:
Ms. Jyotsna Tendulkar
Ms. Jyotsna has been working with SBI sine 1996, and is currently a Branch Manager at the
Dadar Branch. Hence, we thought she would be a perfect candidate as she would have
personally witnessed the transition.

Conclusion 16
The document provides a comprehensive overview of the digital transformation journey of the
State Bank of India (SBI), highlighting the bank's historical evolution, current position in the
financial industry, and the significance of digitalization in banking. It outlines the initiatives
undertaken by SBI to enhance customer experience, operational efficiency, and financial
inclusion through the adoption of digital technologies. The report also emphasizes the bank's
commitment to addressing regulatory compliance, human and social factors, and the
competitive pressures in the industry. The digital transformation journey of SBI is ongoing,
with a focus on leveraging technology to strengthen its digital strategy and ensure continued
success in the ever-evolving financial landscape.
Summary of Findings
The summary of findings encompasses the quantifiable benefits of SBI's digital transformation,
including cost reduction, increased efficiency, and customer growth. It also highlights the
bank's initiatives for financial inclusion, collaboration with institutions, and the recognition of
untapped potential in digital channels for expanding services and reaching a wider customer
base. Additionally, the summary addresses the competitive pressures in the industry and the
growing demands for convenient and digital banking experiences from customers.
Implications for the State Bank of India

The implications for SBI revolve around the practical consequences and potential impacts of
the digital transformation journey. This includes the need to further strengthen the bank's digital
strategy, deepen engagement with diverse stakeholders, and ensure adherence to regulatory
compliance and best practices. The implications also encompass the opportunities for SBI to
leverage digital technologies for operational efficiency, customer-centric approaches, and
continued growth in the competitive banking landscape.
Lessons Learned
The lessons learned from SBI's digital transformation journey include the importance of
addressing operational problems, embracing new business opportunities, and meeting the
evolving expectations of customers. The bank has also learned valuable insights about the
significance of employee training and development, collaboration with institutions, and the
strategic adoption of digital initiatives to enhance customer experience and operational
efficiency. These lessons provide valuable guidance for SBI's ongoing digital strategy and
future roadmap.
References
Primary Sources
1. Mukesh Ranjan
2. Reena Pursnani
3. Jyotsna Tendulkar
Secondary Sources

 https://sbi.co.in/corporate/AR1920/technology.html#:~:text=We%20have%20also%2
0embarked%20on,respectively%2C%20are%20carried%20out%20digitally
 https://www.globaldata.com/store/report/state-bank-of-india-enterprise-tech-analysis/
 https://www.tcs.com/what-we-do/industries/banking/case-study/sbi-digital-
transformation
 https://cio.economictimes.indiatimes.com/news/strategy-and-management/a-look-at-
state-bank-of-indias-digital-strategy/76971498
 https://www.expresscomputer.in/interviews/how-sbi-is-reinventing-itself-to-be-a-
digital-bank/22681/
 https://www.linkedin.com/pulse/digital-transformation-indias-largest-oldest-public-
sector-ahmar/
 https://www.sbi.co.in/corporate/AR1617/2_stroy_empowring_custmr_bankg.html#:~:
text=Most%20recently%2C%20SBI%20has%20enabled,with%20any%20corporate's
%20payment%20interface.
 https://bank.sbi/documents/17826/35696/Annual_Report_2023.pdf
Appendices
Additional Data & Charts

Supplementary Information

Declaration on the Usage of Generative AI Tools

We, the undersigned, hereby clarify that in the execution of our project, limited use of
generative AI tools was incorporated. Specifically, ChatGPT was consulted to an extent for its
robust research capabilities.
It is imperative to note, however, that most of our project was the result of our direct labour.
Our workflow was heavily dependent on manual processes, including extensive primary and
secondary research, as well as in-depth collaborative discussions. A significant component of
our primary research included interviews with personnel from SBI, which provided valuable
insights integral to our work.
While acknowledging the support provided by AI tools in specific areas, we assert that the core
and substance of our work were crafted through our initiative and intellectual endeavours. Our
commitment to maintaining a high standard of originality and quality remained paramount
throughout the project's development.
In affirmation of the above statements,

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Enterprise Systems in Digital Age

FT- MBA, TRIM III - 2023-24

Name Roll Number SAP ID

Dated 10th March, 2024

Enterprise Systems in Digital Age Page|2

Benefits Accrued After Digitalization .................................................................................................. 9

Enterprise Systems in Digital Age Page|3

Serial No Topics Students Involved

Enterprise Systems in Digital Age Page|4

Purpose of the Report 15

Scope and Objectives

Company Overview: State Bank of India (SBI)

Current Position in the Financial Industry

Enterprise Systems in Digital Age Page|5

Significance of Digitalization in Banking

2 Enhanced Customer Experience

5 Innovation and Growth

Scenario Before Digitalization

Despite the strides made in digitalization, challenges persisted, particularly in remote or

Foundation of Execution before Digitalization

Enterprise Systems in Digital Age Page|6

2 Standardization and Integration Requirements

2. New Business Opportunities

Enterprise Systems in Digital Age Page|7

Scenario After Digitalization

New Technologies Implemented

1. Cloud Technology Solutions

Enterprise Systems in Digital Age Page|8

Key Digitalization Initiatives

2. Wealth Management and Superior CBS:

Benefits Accrued After Digitalization

 Improved Customer Experience: Digital services, including video statements, e-Wealth

Enterprise Systems in Digital Age Page|9

 Efficiency Gains: Automation of internal processes and the adoption of new

 Customer Satisfaction: Digital services have enhanced the overall customer

1. Tracking New Technologies

2. Group's Suggestions and Thoughts

Enterprise Systems in Digital Age P a g e | 10

 Develop hyper-personalized financial solutions: Go beyond basic demographics

2. Champion Open Banking:

 Establish APIs to share monetary information safely with third-party fintech

 Collaborate with fintech startups to co-create cutting-edge economic services and

3. Focus on Financial Inclusion:

4. Embrace Responsible AI and Data Governance:

Enterprise Systems in Digital Age P a g e | 11

Interviewee – Reena Pursnani

Bridging the Gap

Organization's Path to Digitalization

1. Phases in Digitalization Journey

i. Initial Phase: Introduction of Middleware to establish Two-Step Architecture

ii. Next Phase: Software Upgradation

Enterprise Systems in Digital Age P a g e | 12

iii. Third Phase: Foundational Infrastructure:

The establishment of a private cloud running on VMWare, recognized as the largest