Lakshmi Vilas Bank (LVB), a 90-year-old private sector bank, is shedding its brick-and-mortar model by introducing digital technology to shore-up its customer base, Managing Director and CEO Parthasarathi Mukherjee told The Hindu.
It has plans for new services as a part of its digital focus. It has unveiled LVB Mobile “Banking operations are increasingly moving from brick-and-mortar model. Digital payment channels such as internet and mobile banking are gaining momentum. Going forward, our business will diversify substantially into many such areas and focus on fine-tuning products and services in a bid to build a large base of clientele,” said Mr. Mukherjee , who took charge last month.
The share of electronic payments is on the rise, both in volume and value terms. Several payment channels such as cards (including credit, debit and prepaid varieties), Internet and mobile-based, are growing. During 2014-15, 171 million transactions valued at Rs.1 trillion were handled through mobile banking service in the country.
LVB is lining up a slew of services as a part of its digital focus and will soon introduce mobile wallet services. It has just rolled out its mobile app LVB Mobile.
The bank will build on its strengths in the small and medium enterprise and retail segments, Mukherjee said.
“Retail is very big market. But, our foot print is very small at the moment. So, there will be a lot of focus on retail and we will build new processes and systems in retail lending.” The bank also plans to increase the share of Current Accounts as well as Saving Accounts.