Union Finance Minister Nirmala Sitharaman on Friday emphasised that banks must preserve a 'human interface' when serving customers, even as the financial sector undergoes rapid digitisation. Speaking at the inauguration of the State Bank of India's (SBI) local head office in Pune, she highlighted the importance of balancing technological advancement with personalised service.
Digitisation and Customer Distancing
'Digitisation should happen; it brings in greater inclusivity. But as this shift occurs, we must ask ourselves whether we are becoming distant from our customer base,' Sitharaman stated. She noted that while digital tools empower customers to perform many transactions via their phones, major financial decisions often require professional guidance. 'There are critical decisions where the customer requires hand-holding by bankers,' she added.
Support for MSMEs and Industrial Clusters
The Finance Minister also urged banks to prioritise funding for legacy industrial clusters, particularly in the micro, small, and medium enterprises (MSME) sector. Highlighting Maharashtra's industrial heritage, she pointed out that the eastern and south-eastern districts of the state have hosted such clusters for generations and require sustained financial support to thrive.
Role of Banks in Domestic Consumption
Addressing the current global economic climate, Sitharaman stated that banks play a pivotal role in boosting domestic consumption during periods of international instability. 'Domestic consumption has stood by us well when global markets are in a churn and exports are taking a beating. No doubt, despite tariffs and other challenges, our exporters have been able to find newer markets and keep exports afloat,' she said.
Cybersecurity Preparedness
Regarding emerging threats such as the AI model Mythos and its impact on global cybersecurity, the Finance Minister assured that Indian banks are well-prepared. She mentioned that the Ministry of Electronics and Information Technology (MeitY) is actively engaging with global authorities, foreign governments, and technology firms to understand the evolving landscape. 'We have always been protective of our customers, but that may not be sufficient. We need something far more versatile to counter the newer, sophisticated threats that are likely to emerge,' Sitharaman concluded.
