Kotak Mahindra Bank To Use Technology To Drive Growth After RBI Action, Says CEO Vaswani
The CEO acknowledged that Kotak has made significant strides in embracing technology in recent years, and still a lot needs to be done.
Kotak Mahindra Bank is leveraging technology to drive business growth and enhance customer experiences in the wake of the recent RBI order that barred the private lender from adding customers online, according to its managing director and chief executive offer Ashok Vaswani.
"At this stage, it is appropriate to address the recent RBI order," Vaswani said in a communication to shareholders, expressing confidence in the bank's ability to meet the challenges that lies ahead. He also sees the order as a chance for the bank to forge ahead and outshine its industry peers.
The CEO acknowledged that Kotak has made significant strides in embracing technology in recent years and has invested heavily in resources to support this initiative. However, he also recognised that there is still more work to be done.
"Changing customer expectations, the dramatic pace of business growth and the emerging risk landscape have meant that we have to move at a much faster pace," he said. "It is very clear that technology is going to be at the centre of our efforts to transform and hence, scale."
"We had significantly stepped up resources and investments in technology. We are absolutely committed to further enhancing our resources and commitments in this area and I am very confident that collectively, as a team — we will deliver and use this as an opportunity to leapfrog."
Vaswani assumed the role of managing director and CEO of India's third largest private sector bank on Jan. 1, 2024.
The RBI, in its April 24 order, had directed the private sector bank to cease and desist, with immediate effect, from onboarding new customers through its online and mobile banking channels and issuing fresh credit cards. RBI's action was based on significant concerns found in the regulator's IT examination for 2022 and 2023 and the continued failure on part of the bank to address these concerns in a comprehensive and timely manner, the central bank had then said in a statement.
