The business correspondent (BC) channel needs to be strengthened and its scope should be expanded to drive further financial inclusion, State Bank of India Managing Director Ashwini Tewari said on Wednesday.
“We are looking to now strengthen the BC network because it has to move beyond transactions or account opening. We are working with the regulators to explore if we can have some lighter certification to enable them to offer micro SIPs or micro insurance or similar products,” Tewari said at the FICCI Financial Products Distribution Summit.
SBI is exploring ways to leverage its 1.4 million BC points across the country to distribute other financial services through training, digital enabling and industry-specific helplines, he said.
Tewari highlighted the rising incidents of cyber frauds and how digital channels need to be protected. Digital distribution models need to operate in a highly secure manner that safeguards customers, he said, adding that this is where industry players need to leverage the best of AI capabilities.
On the RBI’s proposal for compensation in digital fraud cases, he said regulators today are taking the stance that banks should bear the share of loss if they fail to prevent fraudulent transactions. “That’s something which is worrying, because ultimately no amount of insurance is going to protect us. If you have to start paying for everything, then you probably will not allow that customer to have a digital channel at all. Unless we marry digital with this protection thing, it is very difficult.”
The SBI official also flagged concerns around mis-selling, saying unit-linked insurance plans are not ideal, and that insurers should focus primarily on protection-oriented products. His remarks come amid tighter regulatory scrutiny and new proposals aimed at curbing mis-selling.