Indian Bank, one of India’s leading public sector banks, has demonstrated a remarkable commitment to innovation and transformation through two pioneering initiatives: Project WAVE (World of Advanced Virtual Experience) and the SMA Collection Proclivity Predictor. Together, these projects highlight the bank’s strategic vision to enhance digital infrastructure, improve customer engagement and address critical challenges in asset quality.

Project WAVE

Revolutionising Banking for the Digital Age

Project WAVE is Indian Bank’s ambitious digital transformation initiative, launched to redefine banking services in a rapidly evolving digital landscape. As a 180-year-old institution navigating the challenges of modern banking, the amalgamation of Allahabad Bank in 2020 positioned Indian Bank as the seventh-largest public sector bank in India. This pivotal moment inspired the creation of Project WAVE, designed to establish a digital-first ecosystem that aligns customer expectations with cutting-edge technology.

Core Features and Achievements

• Digital Ecosystem: Project WAVE introduced IndSMART, an integrated platform for seamless banking and value-added services such as wealth management, insurance, and personal finance tools. This omnichannel strategy improved accessibility for the bank’s vast network of 5,800 branches and 24,000 touchpoints.
• Inclusion and Accessibility: Focused on underserved communities, the project developed innovative solutions such as paperless digital lending platforms for MSMEs and farmers. It included multilingual support and compatibility with feature phones, ensuring rural penetration.
• Infrastructure Modernisation: Indian Bank built a robust fourway data center with private cloud capabilities, enabling zero data loss, scalability, and uninterrupted services. Advanced analytics models like the CASA Catalyst enhanced decisionmaking and operational efficiency.
• Change Management: Recognising the human aspect of digital transitions, Indian Bank established dedicated training programmes and adopted tools like generative AI to upskill employees, fostering a culture of innovation.

Impact and Future Outlook:

Since its inception, Project WAVE has launched 84 digital products, achieving a 16x growth in digital business from ₹9,116 crore to ₹36,678 crore in just a year. In June 2024, 90% transactions of the Bank are carried out digitally.
In June 2024 quarter, there was 83% YoY growth in amount in Digital Retail loan against deposit. Also 2.6 times growth in digital MSME loan was observed while 5.1 times growth in digital KCC was also observed in the same period.

SMA Collection Proclivity Predictor

Proactive Risk Mitigation

The SMA Collection Proclivity Predictor represents Indian Bank’s foray into predictive analytics to address the systemic challenge of managing Special Mention Accounts and preventing them from turning into Non-Performing Assets. Launched in early 2024, this in-house model leverages machine learning to predict and mitigate risks associated with high-risk accounts.

Key Innovations and Processes

• Predictive and Prescriptive Analytics: The model employs logistic regression and heuristic techniques to analyse over 40 variables, such as account behaviour and credit ratings, sourced from internal systems and external databases like GST information. It assigns tailored collection strategies, from SMS alerts to legal actions.
• Granular Design: Separate algorithms cater to retail, MSME, agriculture and corporate loan segments, ensuring contextual relevance across diverse customer profiles.
• Last-Mile Integration: Insights are seamlessly delivered to field functionaries, call centers and dashboards, enabling timely and effective interventions.

Achievements and Efficiency Gains

• Reduction in SMA Accounts: Within six months, the initiative led to an 11% reduction in SMA accounts, with the corporate sector achieving zero slippage.
• Prevention of High-Risk Defaults: The model prevented slippages amounting to ₹1,597 crore during the evaluation period, significantly enhancing financial stability.
• Operational Excellence: Call centers reduced the time required to cover the SMA portfolio by 40%, while maintaining over 95% collection efficiency. The model will be scaled to include SMA 0 accounts, and additional modules will be integrated for automatic SMA notice generation and other follow-up mechanisms, providinga 360-degree approach to managing SMA accounts.

A Unified Vision

Digital Transformation and Risk Resilience

Both Project WAVE and the SMA Collection Proclivity Predictor exemplify Indian Bank’s strategic emphasis on innovation, inclusivity and operational excellence. While Project WAVE reimagines customer engagement and banking accessibility, the Proclivity Predictor strengthens the bank’s financial health by addressing systemic risks. Together, these initiatives highlight a blueprint for public sector banks to navigate the dual pressures of digital transformation and asset quality management. Through these initiatives, Indian Bank has not only improved its financial performance but also inspired confidence among its employees, customers and stakeholders. The success stories of rural farmers accessing credit facilities via SMS and high-risk corporate accounts avoiding defaults reflect the human impact behind the technological advancements.

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