We’ll tie up with fintechs for innovative UPI switch services tailored to payments: Sarvatra’s Mandar Agashe

Customers today demand quick and convenient banking services, leading banks to embrace digital technologies. In an interview with TechCircle, Mandar Agashe, Founder and Managing Director of Sarvatra Technologies, a Pune-based fintech company that develops banking software, emphasised the importance of innovation and the provision of distinctive services for banks to remain agile and competitive. He further explained the company’s collaboration with fintechs by offering innovative Unified Payments Interface (UPI) switch services tailored to payments and Sarvatra’s ambitious plans to enhance the digital banking landscape over the next 12 to 18 months. Edited excerpts:

Which technologies are you most enthusiastic about for the BFSI sector and what is your focus for this year?

This year, we are excited about transformative technologies in the banking, financial services and insurance (BFSI) sector, particularly cloud-native technologies for scalability, reliability, and cost savings. Cloud infrastructure adoption is crucial for dynamic service scaling and cost reduction, creating a more agile banking environment. We are also committed to artificial intelligence (AI) and machine learning (ML) for personalised banking experiences, improved customer service, and enhanced fraud detection. Real-time data analysis helps anticipate customers’ needs and address security issues proactively. Blockchain technology enhances security, transparency, and efficiency in transactions, ensuring tamper-proof records and building trust in digital transactions. These technologies are our main focus this year as we aim to exceed modern customer expectations for innovative, secure, and efficient banking solutions.

What about your collaborations with cooperative banks and how this differs from partnerships with large banks?

Our approach to collaboration varies significantly between cooperative banks and large banking institutions, reflecting their distinct operational needs and capacities. For cooperative banks, we provide hosted solutions that allow these smaller, often community-focused institutions to access high-end banking platforms cost-effectively. This model is particularly advantageous for cooperative banks as it enables them to leverage advanced technologies without the substantial upfront investment typically required for extensive IT infrastructure. In contrast, our engagements with large banks are tailored to integrate seamlessly with their existing, complex systems. We offer on-premises, customised solutions that are designed to meet the specific needs of these larger institutions. These solutions not only enhance their operational efficiencies but also align with their strategic goals, providing a deep level of integration that supports their broad and varied banking services.

Describe some common obstacles and challenges that these banks face during their cloud transformation journeys?

Banks encounter various obstacles during their transition to the cloud, especially concerning data migration and cost control. The first stage, data migration, necessitates in-depth planning to securely move data to the cloud. This process involves not only physical data transfer but also setting up the cloud infrastructure for optimal performance while maintaining security and compliance standards. Additionally, managing costs presents a significant challenge. Although the cloud's elasticity is beneficial, accurately sizing the infrastructure is crucial. Banks need to assess their needs thoughtfully to make the most of this elasticity, avoiding overprovisioning and unnecessary spending. Effective cost management in the cloud relies on continuous monitoring and resource adjustments to align with changing requirements, allowing banks to optimise their cloud investments and reduce unnecessary expenses.

How are you assisting smaller and rural banks in creating a unique advantage?

We support smaller and rural banks by providing accessible technology, improving financial inclusion, establishing trust, and empowering employees. Our UPI switch offers top-notch uptime and transaction approval rates. We educate their staff on efficient digital tool usage, enabling them to compete with bigger banks and enhance service to communities.

Ensuring the security and compliance of customer data is of utmost importance in banking. How do you guarantee this when helping banks transition to the cloud?

In the banking sector, safeguarding customer data and ensuring compliance are top priorities, especially when transitioning to cloud environments. At Sarvatra, we prioritise these aspects by following a comprehensive approach that aligns with the highest standards. We strictly adhere to global compliance standards. Our advanced encryption methods protect data during transit and at rest, defending against unauthorised breaches. Regular audits and compliance checks help identify vulnerabilities and keep our security protocols up-to-date. Robust access controls, including multi-factor authentication, restrict access to sensitive data and systems to authorised personnel only.

What is your technology roadmap for the next one year?

We have ambitious plans to enhance the digital banking landscape in the next 12 to 18 months. With the growing UPI volumes, we will upgrade our infrastructure and provide a modern technology stack for our UPI switch to handle increased transaction volumes efficiently for banks of all sizes. Moreover, we plan to expand collaboration with fintech firms by offering innovative UPI switch services tailored to payments and collections. Incorporating new features into our UPI offerings based on regulatory updates enables banks to provide customers with the latest UPI features, improving user experience. By leveraging Sarvatra’s secure and scalable cloud solutions, banks can swiftly deploy payment services like EFT (electronic fund transfer) Switching, UPI, BBPS (Bharat Bill Payment System), AePS (Aadhaar Enabled Payment System), and NEFT (National Electronic Funds Transfer). Our adaptable cloud-based payment platform serves banks of all sizes, reducing the need for heavy capital expenditures linked to on-premises solutions. Furthermore, our platforms are National Payments Corporation of India (NPCI)-certified, facilitating a plug-and-play model for banks and accelerating their market entry strategies.

What are your perspectives on the future of banking and banking 4.0 in India?

The future of banking in India is undergoing a major transformation with Banking 4.0. This includes a digital-first approach, personalised banking experiences driven by AI and data analytics, increased collaboration between traditional banks and fintech companies, and improved financial inclusion through mobile and digital platforms. Continuous innovation and robust security measures will also redefine the banking landscape.