“Digitization helps banks collect data and improve credit scoring”

Chennai: Union Finance Minister Nirmala Sitharaman said self-filling data collection by banks will contribute to better credit rating of borrowers, which can only be achieved by digitizing their services by banks.
Speaking at the centenary celebrations of Tuticorin-based Tamilnad Mercantile Bank, Sitharaman said, “Today we don’t need to open new branches in remote areas because technology has replaced a physical branch. All the banking requirements of the customers can be met by the digitization of banking services.
Digitization is the way forward for any bank, especially for banks like TMB, the finance minister said. With over Rs 41,000 crore in deposit, of which around Rs 32,000 crore is given as advances by TMB, “If that’s how quickly the bank is using the money to do more business.” Then it’s more efficient to adopt technology-driven solutions, ”she said. “The digitization of banks helps to collect self-populated data, which in turn will enable better customer credit scoring and better lending by banks. FinTech is the biggest area (of business) that we can cross data using, ”she added.
TMB Managing Director and CEO KV Rama Moorthy said loan disbursement to pharmaceutical and healthcare units will be at the heart of a series of year-long events and initiatives . The bank will launch the TMB Mobile DigiLobby and a mobile vaccination campaign to support our communities.