AU Small Finance Bank’s Total Enterprise Reinvention Journey

From passbooks to credit cards to mobile banking, technology has been quick in revamping the banking sector. By teaming up with valuable partners, banks have benefitted from India’s conducive regulatory environment, thriving economy, and cutting-edge innovations. Accenture and AU Small Finance Bank is one such successful alliance. In our second episode of the BT- Accenture Leadership Dialogues, Business Today’s Aayush Ailawadi is in conversation with Sanjay Agarwal, Managing Director and CEO of AU Small Finance Bank, and Sonali Kulkarni, Managing Director, and Lead - Financial Services of Accenture in India, where they discuss their experience on embracing digital transformation, offering financial services 24x7 anywhere – including the most remote locations – and what the future holds for India’s banking sector.

What started from a ground-up Non-Banking Financial Company in 1996, AU Small Finance Bank has now emerged as India’s largest and fastest growing small finance bank as they have reached 1,027 Touchpoints across 21 States and 3 Union Territories.

Hailing from the pink city of Jaipur, Sanjay Agarwal has a professional background as a Chartered Accountant. He embarked on a journey as a first-generation entrepreneur, aiming to empower people with entrepreneurial aspirations living in underbanked areas. After two decades of working with rural and urban populations as AU Financiers, they received the banking license in 2016 and became AU Small Finance Bank. In a strategic collaboration, the bank joined forces with Accenture to set up a strong technology foundation, and leverage advanced digital solutions, thus enabling the bank to thrive and flourish amid India's ever-evolving banking industry.

The strong technology foundation enabled AU Small Finance Bank to introduce a suite of advanced features, including the digital platform AU 0101 and video KYC technology that enhances the banking experience and delivers exceptional value to their customers. “…in the hinterland of India, we leverage technology to help people fill in banking forms, thereby overcoming barriers of literacy and language,” says Sanjay Agarwal as he explains the importance of paperless banking in the rural areas. He observes the remarkable transformation witnessed by the Indian banking sector due to new technological innovations and a conducive regulatory environment. “20 years back, if you wanted to open an account it would take you around 30 days, now it's 30 seconds,” says Sanjay Agarwal.

With data becoming ubiquitous, AU Bank has continued the collaboration with Accenture to set up a new data platform on cloud that will serve as a foundation to offer customized and personalized services to their customers, enabling sales acceleration and improving the overall productivity throughout the bank. “The data platform program that we are working (on) with AU Small Finance Bank harnesses the power of cloud. That should allow the bank to offer more personalized experiences and unlock value for its customers,” says Sonali Kulkarni. This foundational cloud data platform will enable the bank to adopt advanced analytics, AI and Generative AI, and be future-ready.

When discussing the bank's strategy employed to navigate the pandemic, Sanjay Agarwal, a cricket enthusiast, shares how his learnings from the gentleman’s game helped him lead his team to success. “I always tell people, this is bad weather, let’s not get out, let’s stay on the course, let’s not be adventurous,” says Sanjay Agarwal.

In India’s thriving economy, banks are supported by a regulatory environment that fosters innovation with strong governance as well as the new-age digital solutions that will redefine banking as we know it. Watch the episode on AU Small Finance Bank’s Total Enterprise Reinvention journey on BT-Accenture Leadership Dialogues.