The Indian banking sector has undergone a dramatic transformation over the past few years. As customer expectations and the overall functioning of the banking ecosystem evolve, banking organizations are also realigning their internal operations. AU Small Finance Bank proactively invests in technology to ensure that all of its HR processes are aligned to meet the needs of its employees. To fundamentally improve its HR processes, AU Small Finance Bank relies heavily on the cloud and its integrated technologies such as AI, ML and data analytics, says Vivek Tripathi, Head of Human Resources, AU Small Finance Bank
Some edited excerpts from an interview:
How has the banking industry evolved recently given the rise of digital banking? What are some of the core processes that have changed significantly for Indian banks due to this development?
India is projected to become a $5 trillion economy by 2026-27, as suggested by the International Monetary Fund’s World Economic Outlook. This growth is strongly attributed to the expected exponential growth of digital infrastructures for services, in particular “financial”. The sudden surge in digital adoption during the pandemic has made India a leader in the fintech revolution.
The wave of digital banking has pushed Indian banks to leverage technology to bring comprehensive banking services to smartphones. After the pandemic, those who were hesitant or hesitant to use digital banking services are now being forced to do so. It is a must rather than a choice. Thus, chances are that this change is not momentary, and we can expect more adoption of digital banking services in the near future due to its streamlined process and the convenience it offers.
Almost all core banking processes have evolved significantly due to a variety of digital banking services, ranging from financial management to HR processes to customer experience processes. In a nutshell, technology has essentially become a powerful enabler for all banking operations.
While talking about the changes during this transition, we see technology and automation driving the banking industry these days. We have seen a trend of rapid adoption of digital technologies amid the pandemic, especially cloud technology, and many private and public banks have already embarked on a cloud transition. We see banks of all sizes catering to rural and urban populations increasing their investments in cloud applications as they strive to deliver the best mobile and digital banking experiences to their customers. Judging by current trends, this is only the beginning of a complete overhaul of the Indian banking industry, and we will see even bigger and more substantial changes in the years to come.
The future of work and employee orientation have been the subject of much discussion in recent years. How do you see employee processes changing within the Indian banking ecosystem?
Like the global workforce, employees in the banking sector in India have seen their priorities shift, with a focus on work-life balance, flexibility, agility and career opportunities. career development. They also seek resilient and holistic work environments that allow them to grow while being mindful of their mental and emotional well-being. We strongly believe that the pandemic has caused an irreversible change in the way we work, and banks need a long-term strategy to keep their employees’ happiness quotient intact. As digital banking and mobile banking take center stage and replace traditional banking processes in banking, HR processes are also becoming digital and paperless. At the same time, employees’ priorities have changed, requiring more help from HRDs.
Overall, the role of HR managers has evolved from managing HR functions such as payroll, attendance, and raises, among others, to providing much more versatile support. CHROs are now expected to perform additional functions such as ensuring seamless communication through digital channels, providing learning and development opportunities, performance management functions and providing emotional support to employees. Therefore, CHROs are investing in deploying smart technologies including cloud, artificial intelligence, machine learning and data analytics to help them fulfill their evolved role through decision making. strategic and data-driven.
How does AU Small Finance Bank ensure that its HR processes are aligned with the needs of its employees, especially given their large employee base spread across multiple locations? Additionally, how do you ensure that your employee base is seamlessly integrated across multiple branches?
The Indian banking sector has undergone a dramatic transformation over the past few years. As customer expectations and the overall functioning of the banking ecosystem evolve, banking organizations are also realigning their internal operations. We proactively invest in technology to ensure that all of our HR processes are aligned to meet the needs of our employees. To fundamentally improve our HR processes, we rely heavily on the Cloud and its embedded technologies such as AI, ML and data analytics. As a banking player, we are making significant progress in using cloud computing to revolutionize our HR processes aligned with the needs of our large employee base of nearly 30,000 employees.
We have smart solutions in place and leverage technology to keep our employees connected across locations and to promote collaborative working practices.
How does cloud-specific technology help AU Small Finance Bank improve its HR processes? What are some of the solutions the organization has implemented to automate HR processes and provide a superior employee experience?
The adoption of cloud technology has transformed the streamlining and digitization of our HR processes, including the hiring and retirement series of recruitment, talent management, performance mapping, learning and compensation, while consuming less time through automation. When we started our cloud journey, we were looking for a reliable cloud provider who could help us along the way and hold our HR managers accountable. We opted for Oracle’s cloud-native HCM application to functionally improve our talent management processes and deliver the best experiences to our employees, thereby improving employee satisfaction.
Oracle HCM solutions have helped us use cloud capabilities to align and streamline our employee processes, leading to a superior experience for candidates during the onboarding process, new hires, and existing employees through a single integrated cloud platform. Additionally, to address employee priorities and career development needs, we leverage the solution’s built-in AI capabilities, backed by HCM data integrity and completeness, to help our people understand, map and improve its objectives and performance.
Apart from this, with the adoption of the Oracle cloud solution, we have achieved benefits such as reduced time to hire, elimination of manual processes, improved candidate experience, improved of the goal performance process and improving the hiring experience.
Can you highlight the compelling reasons to deploy Cloud and HR Tech? Also, could you elaborate on the details of the project, such as the number of employees covered by this project, the geographies, the challenges you faced prior to implementation, and how technology paved the way for a function Transparent and streamlined employee-centric HR for you?
Changing industry standards have been the driving reason for cloud adoption. Our priority was to meet the needs of our workforce and provide them with the best experience. Therefore, after much deliberation, we chose a cloud-native application.
We started this process with less than 8,000 employees. The biggest challenge was the lack of the latest technology and the use of incongruous systems which made it difficult for us to keep all aspects in sync. This had an impact on the overall employee and candidate experience.
Early in the deployment of cloud and HR technology, the team struggled to adopt and use the modules. However, with Oracle Cloud HCM, we were finally able to unify all HR processes on a single platform, which made it easy to automate using the latest technologies available in the market. Most of our manual processes have now been digitized through the adoption of cloud-native HR technology. Our full employee lifecycle is managed digitally, including pre-onboarding, onboarding, performance management, talent management, training and development, and more. Additionally, to support our former employees, we have launched a portal on HCM which assists them with all necessary documentation while keeping posted on the latest vacancies.
Now we have also become less dependent on IT, as HR teams can manage the system themselves. Overall, it elevated the experience of our employees and candidates to the next level. Now, more than 30,000 employees benefit from our HR Tech.
What are some of your future digitization plans to further improve your processes?
AU is a technology-focused bank. Whether for customers or for employees, our commitment to staying ahead of digital will be a critical factor in influencing our future course of action. To ensure our employees and candidates have a highly personalized experience, we are constantly striving to adopt the latest technologies and best practices, as well as adopting analytics to drive decision-making across the organization.
Going forward, I would like my team to focus more on strategic initiatives and move away from transactional activities. For this, we are increasing the use of AI / ML, digital assistants, analytics, etc.