Recently, the EASE (Enhanced Access and Service Excellence) 2.0 Banking Reforms Index was released, revealing the performance of Public Sector Banks (PSB) from March 2018-2020. The most successful banks under this index were honored, with Union Minister of Finance & Corporate Affairs inaugurating Doorstep Banking Services by PSBs at the event. Additionally, the launch of EASE 3.0 for smart, tech-enabled banking in February, 2020 was highlighted.
The EASE Reforms Agenda is a joint initiative by the government and the PSBs launched in January 2018. Commissioned through the Indian Banks’ Association and composed by Boston Consulting Group, the EASE Agenda’s primary aim is to institutionalize clean and smart banking. The Indian Banks’ Association, established on 26th September 1946, is a Mumbai-based association comprising Indian banks and financial institutions.
About the EASE Reforms Index
The EASE Reforms Index is an analytical tool that assesses the performance of each PSB via 120+ objective metrics. The Index employs a fully transparent scoring methodology, aiding banks in identifying their strengths and potential areas for improvement. This transparent approach encourages healthy competition among PSBs, driving change continuously.
The Evolution from EASE 1.0 to EASE 2.0
The EASE 1.0 report showed significant improvement in PSB performance, particularly regarding the resolution of Non-Performing Assets (NPAs). EASE 2.0 built on this foundation, introducing new reform Action Points across six themes to ensue sustainability, strengthen procedures and systems, and drive results. These themes are Responsible Banking; Customer Responsiveness; Credit Off-take; PSBs as UdyamiMitra (SIDBI portal for credit management of MSMEs); Financial Inclusion & Digitalization; and Governance and HR.
Performance of PSB on EASE 2.0 Index
The overall score increased by 37% between March-2019 and March-2020, with the average EASE index score rising from 49.2 to 67.4 out of 100. The top-performing banks were Bank of Baroda, State Bank of India, and the erstwhile Oriental Bank of Commerce. Significant improvements were noticed in digital banking, customer service, loan provision, and handling NPAs and frauds.
Unveiling of EASE 3.0
Under EASE 3.0, a comprehensive agenda has been adopted for smart, tech-enabled banking for FY 2020-21. It involves initiatives like eShishu Mudra (app-based lending for instant sanction of working capital up to Rs. 50,000) for straight-through processing of loans to micro-enterprises. The EASE 3.0 seeks to enhance ease of banking in all customer experiences, leveraging technology like Dial-a-loan, Partnerships with FinTechs and E-commerce companies, Credit@click, Tech-enabled agriculture lending, EASE Banking Outlets etc.
Doorstep Banking Services
As part of the EASE Reforms, Doorstep Banking Services has been conceptualized to offer convenient banking services at the customers’ doorstep through universal touchpoints like Call Centre, Web Portal or Mobile App. Currently available only for non-financial services, financial services will be made accessible from October 2020, benefiting all customers, especially Senior Citizens and Divyangs.
This article is based on data sourced from PIB.