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Saturday, June 8, 2024

Public Sector Banks to soon launch new schemes for women

Public-sector banks (PSBs) are set to launch customized financial schemes specifically designed for women, particularly entrepreneurs and startup founders. These schemes aim to address the challenge faced by women in accessing funding through existing channels. The department of financial services has instructed banks to develop strategies to support women customers as part of the Enhanced Access and Service Excellence (EASE 7.0) reforms agenda. EASE 7.0 focuses on various aspects such as risk assessment, management of non-performing assets, financial inclusion, customer service, and digital transformation.

Recognition of Women’s Influence in General Elections

Women played a significant role in the recent general elections, with approximately 312 million women voters. According to pollsters, more women turned out to vote than men, and a larger number of women voted for the National Democratic Alliance (NDA), which is poised to form the new government.

Key Features of EASE 7.0 Reforms

The latest EASE reforms include the introduction of special banking services for women entrepreneurs and the organization of ‘loan melas’ (loan fairs) for those seeking financial support for their ventures. PSBs will also facilitate programs to connect women founders with startup incubators to assist them in scaling their ventures. Additionally, banks will organize camps to provide financial education to women, encourage them to become part of the banking system, help them access the benefits of various government schemes, and educate them about investing and financial planning.

Focus on Empowering Women Entrepreneurs

The head of a public sector bank, speaking on the condition of anonymity, stated that women support programs would be the central theme of EASE 7.0. They expressed confidence in the potential of their female customer base to advance and become successful entrepreneurs. Public-sector banks are eager to provide support through new and innovative financial products.

Importance of EASE Reforms

The EASE reforms have been a significant priority for the banking industry since FY19. Managed by the EASE steering committee of the Indian Banks’ Association, these reforms aim to enhance the capabilities of PSBs and meet the evolving demands of the industry. The reforms also establish a common platform for large and mid-size banks to adopt and reinforce best practices to improve customer service at PSBs.

Evolution of EASE Reforms

The EASE reforms have progressed through several versions. The initial versions focused on establishing a strong foundation and addressing operational and capability gaps. Subsequent versions focused on building new capabilities through digital innovations and analytics, improving performance through data and technology, and enhancing the digital customer experience. EASE 6.0 (FY24) concentrated on delivering excellence in customer service through technology and capability building.

EASE 7.0: Exclusive Focus on Women

EASE 7.0 will exclusively concentrate on women empowerment, ensuring that PSBs provide comprehensive financial support to women. The aim is to enable women to thrive as entrepreneurs and achieve success in their ventures. Efforts will be made to facilitate women’s access to financial services and empower them through various financial products and support mechanisms.

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