JAIIB · RBWM

DIGITISATION OF RETAIL BANKING PRODUCTS & ROLE OF AI AND TECHNOLOGY IN RETAIL BANKING & RECOVERY OF RETAIL LOANS

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Retail Banking and Wealth Management — JAIIB.

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One-liners from this chapter

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Q

What is the primary regulatory framework governing digital banking operations in India?

A

The Reserve Bank of India regulates digital banking through the Payment and Settlement Systems Act 2007, IT Act 2000, and various RBI master directions on digital lending and payment systems.

Q

What is a Digital Personal Loan (DPL) and how is it disbursed?

A

Fully online loan sanctioned and disbursed without branch visit.

Q

What does the term 'straight-through processing' (STP) mean in the context of retail banking digitisation?

A

Straight-through processing refers to the automated end-to-end processing of banking transactions without manual intervention, reducing turnaround time and operational costs significantly.

Q

What is a Loan Origination System (LOS) in retail banking?

A

Software platform managing end-to-end loan application and approval workflow.

Q

How does Artificial Intelligence assist in credit underwriting for retail loans?

A

AI analyses alternative data sources such as utility payments, social behaviour, and transaction history to generate credit scores and lending decisions, enabling faster and more accurate loan sanctioning.

Q

What is a Loan Management System (LMS) in the context of retail loans?

A

System for tracking disbursed loans, repayments, and borrower account maintenance.

Q

What is a digital lending platform and how does it differ from traditional loan processing?

A

A digital lending platform allows end-to-end loan origination, processing, and disbursement online without physical branch visits, enabling instant decisions compared to days or weeks in traditional processing.

Q

What is a credit bureau score and how does it aid digital retail lending?

A

Numerical credit rating enabling instant automated eligibility checks for borrowers.

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