Mandar Koli

In banking, titles look grand. VP. EVP. MD. But peel the layer, and here’s the truth: most of those promotions are designations, not decisions. I spoke to a senior banker yesterday- 22 years in risk and credit. He runs a large team. Handles multi-billion portfolios. On paper, it looks like he should be a frontrunner for the Group CFO or even the CEO track. But when he sat in front of the board for an external CFO role, he froze. Why? Because his playbook was too narrow. He never owned P&L. Never handled digital transformation. Never drove global expansion. The bank gave him a growth in title. The market asked for growth in exposure. And that’s the silent trap for many bankers: You feel senior. You feel safe. Until you step outside your logo — and realize the world doesn’t value your 20-year climb the way you thought it would. The real question isn’t how fast you’re getting promoted. It’s whether your career is building compounding value outside your own bank’s walls.

1,443

109 Comments

When Loyalty Is Met with Layoffs: Reflections from 30 years in the evolving corporate world! "Can you demand loyalty from someone you treat as temporary ?" Loyalty has become both overused and conveniently misused in corporate corridors. Lately, I see surging commentary lamenting "lack of loyalty" in younger employees. HR and leadership express concern that people no longer "stick around." Ironically, some concerns come from individuals who've switched organisations multiple times. Having served one institution for 27 years, I'm often cited as loyalty's shining example. I'm asked—why is that now so rare? My counter-question is blunt: "Have you built a culture worth being loyal to?" What I observe is a growing mismatch between what organisations demand and what they offer in return. Employees face layoffs with little notice—wrapped in neat terms like "strategic restructuring," "tactical realignment," or the convenient fig leaf: "meritocracy." Often, it's long-serving, committed, quietly dependable people shown the door via VRS, ERO, or redundancy clouds. Despite decades of service, they're made dispensable overnight. These aren't people who couldn't find other jobs but chose to stay out of belief, connection, or purpose. Yet organisations creating such cultures express surprise when someone leaves within months. Just like organisations, younger employees too have their strategic, tactical career decisions, and the organisation becomes redundant in their scheme of things. More so when staying committed earns neither respect, security, nor growth. Loyalty feels more like a liability than a strength. Organisations prioritise stakeholder value, but employees are the biggest stakeholders in their lives and careers. Layoffs have obliterated loyalty's definition. You cannot lay off people in one breath and preach commitment in the next. You cannot ignore toxic managers then expect healthy teams. You cannot prioritise green spreadsheet cells while ignoring red flags in human sentiment. "Retention" seemingly lacks real intent—it's merely keeping some other cells in the spreadsheet green. The irony is stark: organisations treat humans as mere resources- to be used till decided to be thrown—yet expect these "resources" to act as loyal humans until they're discarded. Expecting "long race" behaviour when you haven't built a track that lasts !!!! If loyalty is what you seek, start by demonstrating it. Not just in speeches and LinkedIn posts or published policies, but in actions, empathy, and culture. Because loyalty, like respect, is earned, not demanded. A clarification: I haven't picked up the cudgel on behalf of "not-loyal" employees, but written this to create a mirror. The reflections in that mirror may go a long way in creating truly "Great Places to Work"—where employees deliver beyond expectations because they choose to, not because they have to. #LoyaltyIsTwoWay #CultureEatsStrategy #TrustIsEarned #LoyaltyMatters #FromLoyalToLeaving

564

60 Comments

Reuse or Replace As an Indian, I have been used to tue word Repair. Growing up as a kid, the refrigerator, Aircon, TV lasted years at time generations. If it suddenly stopped serving the house, it was carted off to a repair store where it was fixed and back to duty in the household. Increasingly the art of repair is vanishing - its now about replace. A PCB to the indoor unit of an aircon is not working, it could either be the sensor or the IC/chip - the manufacturer says, the PCB needs replacement. sensor would cost less than a 100 bucks, but the PCB costs 35x at Rs. 3500... plus the need to dispose e-waste. A steaming coil in the coffee maker is not working properly, and the company/manufacturer doesn't provide the sub assembly or the spare. So after 3 years of use and 1 month of follow up, the company decides to offer a discount on a new machine. Won't it be simpler to replace the steam coil instead! The skill does exist, time to use that. There is more e-waste we are generating for convenience. Time to be sensitive to the environment as well as the pocket - Let this not become a cost of development

87

5 Comments

MSME Digital Loans: A Game Changer for Small Businesses Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in economic growth, but access to timely credit has always been a challenge. Traditional lending processes involve extensive documentation, long approval times, and strict collateral requirements. However, digital lending has revolutionized MSME financing by offering quick, hassle-free, and collateral-free loans. What Are MSME Digital Loans? MSME digital loans are financial products offered through digital platforms, fintech companies, and banks using technology-driven processes. These loans leverage data analytics, artificial intelligence, and automation to assess creditworthiness, reducing dependency on traditional credit scores. Key Benefits of MSME Digital Loans 1. Quick Approval & Disbursal – With AI-powered credit assessment, digital loans can be approved within hours, compared to weeks in traditional banking. 2. Minimal Documentation – MSMEs can apply using Aadhaar, PAN, and GST details, avoiding cumbersome paperwork. 3. Collateral-Free Loans – Many digital lenders provide unsecured loans, helping small businesses without significant assets. 4. Flexible Loan Amounts & Tenure – MSMEs can access customized loan options ranging from ₹50,000 to ₹5 crores, with repayment tenures suited to their cash flow. 5. Enhanced Financial Inclusion – Digital loans extend credit to underserved businesses, including those with limited credit history. Challenges & The Way Forward While digital lending boosts MSME financing, risks like data privacy concerns, high interest rates, and regulatory challenges need attention. The RBI has introduced guidelines to regulate digital lenders, ensuring transparency and borrower protection. With increasing fintech adoption, MSME digital loans will continue to drive financial inclusion, enabling small businesses to grow and contribute to the economy effectively. We at State Bank of India (SBI) developed Digital Business Rule Engine for MSME loans upto Rs 5 cr, which uses the informations available on various Digital Public Infrastructure platforms and other data points in the ecosystem. And are able to deliver GO/NO-GO decision in 30-40 minutes, along with the lendable amount. Happy to share that we at SBI have crossed one lac loan sanctions using this Digital tool in the last one year. Aiming to triple the pace in the coming months. #MSME #DIGITALSMSELOANS

678

47 Comments

The Reserve Bank of India has issued a directive to all banks participating in RTGS and NEFT systems to introduce a beneficiary bank account name lookup facility. This facility will enable remitters to verify the beneficiary's name before initiating a transaction, similar to the existing facility in UPI and IMPS systems. Banks must make this facility available to their customers through Internet banking and mobile banking, and they must have it at their branches by April 1, 2025. The facility will fetch the beneficiary's account name from the bank's Core Banking Solution (CBS) based on the account number and IFSC provided by the remitter. Specific instructions for displaying the beneficiary's name, handling cases where the name cannot be displayed, and displaying alert messages are provided. Banks must preserve detailed logs of all queries and responses related to the facility. NPCI will not store any data and disputes will be resolved between the remitting and beneficiary banks based on the unique lookup reference number and logs. The facility must be provided to customers free of charge and banks must comply with legal provisions related to data privacy.

68

3 Comments

Had a very interesting interaction during the fireside chat session, and also some lingering thoughts. In a volatile lending environment, rebuilding trust between small entrepreneurs and bankers requires balancing data-driven efficiency with human empathy. As algorithms replace paper ledgers and traditional judgment calls, trust must be re-engineered through transparency, inclusion, and human oversight. Entrepreneurs must understand how credit decisions are made. Even in a digital-first world, personal interaction remains vital. Relationship managers can interpret algorithmic insights for borrowers, adding empathy to objectivity. This hybrid model ensures that entrepreneurs feel and seen as individuals, not just data profiles. Banks that succeed will not merely lend money — they will lend credibility, confidence, and continuity to small enterprises navigating uncertainty. Beyond financials and Digital footprints, behavioural data — such as repayment timeliness, response to reminders, digital engagement, and even psychometric assessments — provides insights into the entrepreneur’s intent and discipline. This makes it possible to underwrite trust, not just assets. While behavioural and transactional data can supplement or even replace collateral for smaller ticket loans, large-value lending may still require a blended model — where digital trust indicators coexist with selective asset backing. As banks depend increasingly on third-party data sources — GST records, e-invoices, and platform analytics — ensuring data integrity and consent-based sharing becomes critical. Robust data governance frameworks are essential to prevent misuse or bias in credit decisions. Fintech collaborations are redefining the DNA of legacy institutions — transforming them from traditional lenders into digitally agile, customer-centric ecosystems. While fintechs bring innovation, banks provide regulatory discipline, risk management, and trust capital built over decades. This balance ensures that innovation does not come at the cost of prudence. Fintechs benefit from the bank’s governance framework; the bank gains from fintechs’ innovation velocity, thus blending tradition with transformation. Beyond technology, partnerships infuse a startup mindset — agile decision-making, rapid prototyping, and data-driven learning — into the bank’s institutional culture, making it future-ready while staying grounded in its heritage of trust.. In essence, fintechs give Banks wings, while the banks gives fintechs roots. Together they represent a new model of collaborative competitiveness — where agility is strengthened by credibility, and innovation is anchored in trust. Thus, by piloting new technologies in controlled environments, partnering with fintechs under clear governance, the Banks ensures innovation is measured, inclusive, and risk-aware. In a century-long journey, markets, technologies, and business models have changed, but the constant has been trust.

134

2 Comments

🕹️💵“Unsecured Lending: Why the Old Playbook is Dead and What Comes Next” ☹️The unsecured lending specially, card business is no longer about steady revolvers and loyal customers. Switching is easier, loyalty is thinner, and NPAs are rising, making the old model unsustainable. The only way forward? Hyper-personalisation that balances growth, risk, and profitability. 💁🏻The Shift in Play 🫥Customer stickiness is falling: Digital onboarding and co-brands make switching effortless. 🫥Income lines are under pressure: Interchange caps, lower fee tolerance, and rising transactors dilute revenue. 🫥Risk profile is worsening: NPAs in credit cards touched ₹6,742 crore (2.3% of outstanding ₹2.92 lakh crore) as of Dec’24 ,a 28% YoY jump. All the big issuers have seen rising write-offs despite double-digit growth in spends and active cards. 😨This points to a dangerous mix: Transactors (low yield), Revolvers (higher risk), and Abusers (promo-gamers driving losses). 🤯Why the Old Model is Breaking Broad-based incentives and long amortisation cycles assumed stable behaviour and loyalty. But with easy switching and shorter holding periods, acquisition costs can’t be recovered and rising bad rates make the business model unviable. 💁The New Rule: Hyper-Personalisation Hyper-personalisation is no longer a marketing buzzword. it’s the backbone of profitability. Done right, it: 1. Optimises revenue: Match rewards, limits, and pricing to real customer behaviour. 2. Cuts costs: Reduce ineffective mass campaigns and CAC. 3. Contains risk: Spot early stress signals and intervene before delinquency. 😎What Issuers Must Do ₹ Re-segment around behaviour, not just credit score. ₹ Dynamically calibrate pricing, limits & offers. ₹ Align risk & marketing under a single P&L view. ₹ Build real-time early-warning systems for abusers and stressed cohorts. 🥸Bottomline The playground has changed, and so have the rules. Hyper-personalisation is now the single lever that can balance growth, risk, and profitability in credit cards. The issuers who move fastest will set the new benchmarks in unsecured lending.

67

5 Comments