We’re restructuring our entire tech stack: Rajesh Choudhary, CTO of CSB Bank

CSB Bank, headquartered in Thrissur, is currently undergoing a significant digital transformation. According to Rajesh Choudhary, the bank's chief technology officer, this transformation is expected to be completed within the next 12-18 months. Despite its history as a traditional bank, CSB Bank is now focusing on initiatives aimed at becoming a modern bank. In an interview with TechCircle, Choudhary explains that these initiatives include upgrading processes, technology, and human resources. He further elaborates on how the bank has reorganised its operations into focused business areas, realigned, trained, and incentivised employees, created new products and services, increased sales and marketing efforts, invested in technology, and strengthened the monitoring and risk management framework to facilitate this transformation. Edited excerpts:
 
What technologies are you currently implementing and excited about?

CSB Bank is implementing the SBS 2030 strategy to become a mid-sector bank by 2030. Our IT strategy aligns with SBS 2030, focusing on rebuilding the technology stack for a modular, resilient, and agile experience. This will provide customers with a top-notch digital and AI-driven experience. Our IT strategy includes building the technology core and developing new systems for banking, payments, lending, customer onboarding, trade finance, HR, finance, risk, and compliance. We are also adopting microservices, STP, AI, and various cloud solutions. Additionally, we are creating digital-first solutions for omnichannel experiences and investing in data platforms and analytics for predictability and personalisation. Leveraging customer data, we aim to enhance cross-selling, upselling, targeted campaigns, and personalised offers.

As a late entrant in the industry, we are learning from other banks and capitalising on opportunities in the Indian market. CSB Bank is dedicated to executing the SBS 2030 strategy and building a strong technological foundation for exceptional banking services.
 
Is your company's tech budget growing this year or has it remained the same as in the past few years?

Our technology budget is growing every year. Our focus this year is on building the new Core Banking System, including Payments, Channels, Trade Finance, Finance, and Risk Management Systems. Additionally, we are completing the implementation of our Lending Systems. By enhancing our distribution channels and adding new products, we aim to grow our customer base and provide exceptional services with a modern technology stack.
 
Which technology areas will be your focus this year and why?

We have already built our data centres. The focus this year is on building the new Core Banking System, including Payments, Channels, Trade Finance, Finance, and Risk Management Systems. We are also completing the implementation of our Lending Systems this year. The bank is building its distribution channels and adding new products simultaneously. A country-wide strong distribution channel with a modern technology stack will help the bank grow its number of customers and provide excellent services to our customers.
 
Are you planning to expand in the next year by hiring new talent or upskilling existing employees?

Our technology team is a combination of bank staff and partner staff. We have nearly doubled our technology team within a year and are still hiring. We have built architecture, engineering, and domain technology skills within the bank and outsourced operational skills at the entry level. We have also built a team to innovate with new technologies to enhance efficiency and customer experience.
 
What kind of innovation are you bringing with technology as an enabler? Can you please highlight 1-2 cases where technology has helped improve business revenues or cx for the company?

Our key focus this year is on enhancing our technology infrastructure by developing a new Core Banking System, which includes payments, channels, trade finance, finance, and risk management systems. Additionally, we are in the process of finalizing the implementation of our lending systems.

To enhance customer experience, we are introducing Customer 360 at the bank. This will centralise all customer data, including products, balances, complaints, transactions, and more. When customers visit or contact us, bank officers will use Customer 360 for better service. By strengthening our distribution channels and introducing new products, we aim to expand our customer base and deliver exceptional services nationwide.
 
When looking at competitor benchmarking, which key technology areas do you see a need to improve?

As mentioned earlier, we are currently in the process of restructuring our entire technology stack. The majority of our systems require replacement. Currently, we are in the implementation phase for various systems, including Core Banking System, Payment, Channel, Lending, Onboarding, HR, Risk, Finance, Compliance, and several others. Upon completion of this transformation, we aim to be on par with the leading banks in the country and potentially even surpass them in certain areas.
 
In the next 1-2 years, how are you looking to achieve growth in your digital transformation journey?

We are currently in the process of implementing the bank's strategy of SBS 2030, with Digital Transformation playing a crucial role. Our journey towards transformation is well underway, with investments made in Omnichannel Experience technology and the digitisation of all our Channels as part of the Core Banking Transformation initiative. Additionally, we are streamlining our operational workflows through the adoption of a workflow automation platform. Over the next 12-18 months, we will be completing extensive digital transformation programs.