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Interview with Sachin Nair, Chief Information Officer at Khan Bank.
- Khan Bank is actively pursuing the digital transformation. It is not something a single person does. Could you please tell me about the IT team that has been driving this transformation?
- I started working in Khan Bank in August of 2019 which means I have been holding the position of Chief Information Officer at Khan Bank for the last three years. When I arrived in Mongolia in 2019, the IT team consisted of less than 150 people. Now we have more than 300 people divided into seven departments. In the course of three years, we have more than doubled our staff. The team is very young and dynamic. 80 percent of the staff is less than 35 years old. More than 50 percent of the team has 1 – 3 years of experience at the workplace. So our team is a very young group of talented people. We prioritize to bring in the right talent and provide them with all the opportunity to grow and develop. So when I look at our IT team, I see talented and young individuals eager to work on different projects, hungry to learn and enthusiastic to create. When I walk the floors, I feel the energy which in turn feels me with passion and zeal. I am happy to say that people behind the technology of the Bank at the forefront of its digital transformation are the representatives of the youth of Mongolia.
- You seem to be very proud of your IT team. You mentioned that you have more than doubled the number of employees at the IT team in three years. In your opinion, why do these talented young individuals choose Khan Bank? What can you offer them?
Khan Bank will be fully digital by 2025. At the moment, certain numbers of services are digitalized and we are working to digitalize all the services we provide
- Indeed, I am very proud of our IT Team. We are the biggest bank in Mongolia but that in itself is not enough to attract talented people. We have to stand out as the people have more and more choices of employment these days. As the CIO of Khan Bank, I put great emphasis on attracting the right people and work closely with the human resources team in this regard. Compared to previous countries I worked before like Japan and Hong Kong, Mongolia is a small country. The demand for IT personnel is huge here since technology and digitalization is leveling the playing field for a country like Mongolia which can create many technological exports. IT can have a huge impact not only in one sector but on the economy of the nation as a whole so same group of people are sought by many employers. So Khan Bank should be able to offer more than others not just in terms of salary but in every other aspect that matters such as the work environment and technology that we provide. We work with international companies and cutting edge technology. For a person working in IT, it is very important to have access to the latest and the greatest technology. Professionals need these kinds of tools to develop and get to the next level. This is what we offer in Khan Bank. We offer the experience to collaborate with international companies and learn from them, and the opportunity to work with the latest technology, which is on par with global organizations. This is the essential attraction of Khan Bank IT team.
Then there are other things such as the work environment, culture, trainings we provide, and the open door policy to our managerial employees. It is encouraged to talk and learn from each other, exchange ideas, work together forming agile teams, and challenge oneself.
- The Bank has been talking about its mid-term strategy of digital transformation for the last two years. When is it going to end? What is left to do?
Our mobile application has a lifestyle menu. You can pay your taxes there. You can manage your personal budget. This trend does not only facilitate the lives of clients but it creates an advantage for e-commerce businesses.
- I have to correct you here. The Bank has implemented its mid-term strategy of digital transformation since 2021. The strategy is expected to be executed until the end of 2023. However, this does not mean the Bank will be finished with its digital transformation in 2023. Rather it is just the beginning of a big process that is expected to continue and evolve endlessly. This is just the starting point. Khan Bank will be fully digital by 2025. At the moment, certain numbers of services are digitalized and we are working to digitalize all the services we provide. Digitalization does not end with services being online. There are many more steps to go beyond providing services digitally. Khan Bank has defined eight focus areas from technological perspective. These eight areas drive the Bank strategy. We want the strategy to bring in the outcome that we want.
- Thanks to the midterm digital transformation strategy of the Bank, services are being digitalized one by one. These are the changes happening on the front-office visible to clients. What are happening behind the scenes? What changes are being brought to middle and back office?
- As I see in a very simplified form, there are three layers of services. The top layer is what the clients experience and see. It concerns the point where clients get in touch with the Bank. In this case, we are talking about Internet Banking, Khan Bank application and the contact center. This is how clients see our system.
There are more than one million clients on our platform. The customer base is already congregated in one place which is a huge advantage for businesses, especially SMEs.
Then comes the middle layer which can be called the logical layer. Then the backend layer where all our systems such as core banking system, omni-channel system and card system lie. To bring faster, better and more reliable services to the front layer, we have to improve the middle and back layers. A lot of the work we are doing are happening at the middle and back layers. At the same time, all these processes are generating a lot of data. We are focusing more on the quality of data rather than the quantity. As the data increases, the storage and capacity at the back-end should be maintained. So we are doing a lot of work in this area too. We need to qualify and manage this data. There are a lot of work to do on the scene and behind the scenes.
- Would the generation of data help to improve your services and products?
- Yes, tremendously. We want to offer highly personalized and tailored services to our clients at the right time through the right channel. That is why we are trying to collect the data properly and precisely define the personas for each customer segmentation. Then we will be able to provide customized and pinpointed services based on the personas using AI and machine learning from day to day basis. We are working on the back-end scenes so the clients can get what they want from the frond-end seamlessly. There are many projects going on at the moment at different stages in order to achieve all these.
- What will happen to relationship managers when majority of clients get financial services online?
- The current role of relationship managers will evolve. When basic financial services are available digitally, the reasons going to the branches will change. Clients will go to branches to get more personalized services specific to their situations and circumstances such as wealth management services and financial consulting.
Khan Bank does whatever is needed to protect its customers. Hackers and ransomware is a potential threat. To fight against those, there are many layers of protection available. We strive to be one or two step ahead of potential threats and do the necessary investment to protect our customers.
Employees at the branches will need to learn a lot more from the relationship manager perspective. The Bank will provide the relationship managers with the opportunity to develop themselves in such a way that they can provide services to clients in a personalized manner. We are trying to provide services at the next level and all the employees at the branches should upskill themselves and evolve. Their work will not reduce rather the quality of their work will change. In the era of digital banking, not only the bank employees but the clients themselves are going through a transition. Clients need to learn how to effectively use the digital tools at their hands to maximize the benefit they get. The Bank has a role to play in educating customers and contribute to digital culture.
- Super-apps have become the trend lately. Will Khan Bank follow this trend?
- Yes. We call that beyond banking and this is in the Bank strategy. We have already started building Khan Bank super-app. Our mobile application has a lifestyle menu. You can pay your taxes there. You can manage your personal budget. This trend does not only facilitate the lives of clients but it creates an advantage for e-commerce businesses. There are more than one million clients on our platform. The customer base is already congregated in one place which is a huge advantage for businesses, especially SMEs. Working with these businesses benefit our clients and our clientele help their businesses. In other words, there will be a mini digital ecosystem where Khan Bank, clients and suppliers are at one place functioning as a unit. The synergy created can benefit all three parties.
- If we look at the big picture, can Khan Bank digital transformation have an effect on the Mongolian digital ecosystem as a whole on a macro level?
- Definitely. Khan Bank is the biggest bank with the most number of clients. Just through its core banking services, Khan Bank supports SMEs, contributes to creating green economy, bring know-how of foreign institutions through its co-operations, brings in the latest technology through its investments in its own IT. As I see it, there is a huge potential. As a banking institution, the Bank’s operations are strictly limited by banking laws. However, through its operations and platforms, Khan Bank can be a stepping stone for other companies and institutions, which in turn benefits the economy and the society as a whole. We are certainly in a leadership position to set an example for other players in the economy and we have the resources to make our vision a reality.
- Sustainable development is the future. How does digitalization help sustainable development?
- There are some obvious ways that digitalization helps sustainable development. It reduces the use of paper, gas used to go to branches and saves energy by reducing the back processes. Other things we are doing to lessen our carbon footprint include reducing the number of servers so that heavy duty machines are needed less. One of the eight focus areas mentioned above is cloud computing. We want to transition to cloud based services and operate on server less technology. If we use starting server-less technology, the carbon footprint must start reducing. Going digital will definitely have a positive impact on climate change. We also upgrade our machines with more energy efficient alternatives as soon as it is available.
Also all our global partners who provide us with the technology we use now are all green minded. We are always looking for ways to make our businesses and technology more sustainable and we work together and unite our effort to be more green.
-Information security is of utmost importance to any establishments, more so for financial establishment. What does Khan Bank do to ensure the customer data is protected?
- Khan Bank does whatever is needed to protect its customers. Hackers and ransomware is a potential threat. To fight against those, there are many layers of protection available. We strive to be one or two step ahead of potential threats and do the necessary investment to protect our customers. The thing I can say with confidence is that Khan Bank has the best and the latest technology available in the market to protect information security and data of its customers.
Interview with Sachin Nair, Chief Information Officer at Khan Bank.
- Khan Bank is actively pursuing the digital transformation. It is not something a single person does. Could you please tell me about the IT team that has been driving this transformation?
- I started working in Khan Bank in August of 2019 which means I have been holding the position of Chief Information Officer at Khan Bank for the last three years. When I arrived in Mongolia in 2019, the IT team consisted of less than 150 people. Now we have more than 300 people divided into seven departments. In the course of three years, we have more than doubled our staff. The team is very young and dynamic. 80 percent of the staff is less than 35 years old. More than 50 percent of the team has 1 – 3 years of experience at the workplace. So our team is a very young group of talented people. We prioritize to bring in the right talent and provide them with all the opportunity to grow and develop. So when I look at our IT team, I see talented and young individuals eager to work on different projects, hungry to learn and enthusiastic to create. When I walk the floors, I feel the energy which in turn feels me with passion and zeal. I am happy to say that people behind the technology of the Bank at the forefront of its digital transformation are the representatives of the youth of Mongolia.
- You seem to be very proud of your IT team. You mentioned that you have more than doubled the number of employees at the IT team in three years. In your opinion, why do these talented young individuals choose Khan Bank? What can you offer them?
Khan Bank will be fully digital by 2025. At the moment, certain numbers of services are digitalized and we are working to digitalize all the services we provide
- Indeed, I am very proud of our IT Team. We are the biggest bank in Mongolia but that in itself is not enough to attract talented people. We have to stand out as the people have more and more choices of employment these days. As the CIO of Khan Bank, I put great emphasis on attracting the right people and work closely with the human resources team in this regard. Compared to previous countries I worked before like Japan and Hong Kong, Mongolia is a small country. The demand for IT personnel is huge here since technology and digitalization is leveling the playing field for a country like Mongolia which can create many technological exports. IT can have a huge impact not only in one sector but on the economy of the nation as a whole so same group of people are sought by many employers. So Khan Bank should be able to offer more than others not just in terms of salary but in every other aspect that matters such as the work environment and technology that we provide. We work with international companies and cutting edge technology. For a person working in IT, it is very important to have access to the latest and the greatest technology. Professionals need these kinds of tools to develop and get to the next level. This is what we offer in Khan Bank. We offer the experience to collaborate with international companies and learn from them, and the opportunity to work with the latest technology, which is on par with global organizations. This is the essential attraction of Khan Bank IT team.
Then there are other things such as the work environment, culture, trainings we provide, and the open door policy to our managerial employees. It is encouraged to talk and learn from each other, exchange ideas, work together forming agile teams, and challenge oneself.
- The Bank has been talking about its mid-term strategy of digital transformation for the last two years. When is it going to end? What is left to do?
Our mobile application has a lifestyle menu. You can pay your taxes there. You can manage your personal budget. This trend does not only facilitate the lives of clients but it creates an advantage for e-commerce businesses.
- I have to correct you here. The Bank has implemented its mid-term strategy of digital transformation since 2021. The strategy is expected to be executed until the end of 2023. However, this does not mean the Bank will be finished with its digital transformation in 2023. Rather it is just the beginning of a big process that is expected to continue and evolve endlessly. This is just the starting point. Khan Bank will be fully digital by 2025. At the moment, certain numbers of services are digitalized and we are working to digitalize all the services we provide. Digitalization does not end with services being online. There are many more steps to go beyond providing services digitally. Khan Bank has defined eight focus areas from technological perspective. These eight areas drive the Bank strategy. We want the strategy to bring in the outcome that we want.
- Thanks to the midterm digital transformation strategy of the Bank, services are being digitalized one by one. These are the changes happening on the front-office visible to clients. What are happening behind the scenes? What changes are being brought to middle and back office?
- As I see in a very simplified form, there are three layers of services. The top layer is what the clients experience and see. It concerns the point where clients get in touch with the Bank. In this case, we are talking about Internet Banking, Khan Bank application and the contact center. This is how clients see our system.
There are more than one million clients on our platform. The customer base is already congregated in one place which is a huge advantage for businesses, especially SMEs.
Then comes the middle layer which can be called the logical layer. Then the backend layer where all our systems such as core banking system, omni-channel system and card system lie. To bring faster, better and more reliable services to the front layer, we have to improve the middle and back layers. A lot of the work we are doing are happening at the middle and back layers. At the same time, all these processes are generating a lot of data. We are focusing more on the quality of data rather than the quantity. As the data increases, the storage and capacity at the back-end should be maintained. So we are doing a lot of work in this area too. We need to qualify and manage this data. There are a lot of work to do on the scene and behind the scenes.
- Would the generation of data help to improve your services and products?
- Yes, tremendously. We want to offer highly personalized and tailored services to our clients at the right time through the right channel. That is why we are trying to collect the data properly and precisely define the personas for each customer segmentation. Then we will be able to provide customized and pinpointed services based on the personas using AI and machine learning from day to day basis. We are working on the back-end scenes so the clients can get what they want from the frond-end seamlessly. There are many projects going on at the moment at different stages in order to achieve all these.
- What will happen to relationship managers when majority of clients get financial services online?
- The current role of relationship managers will evolve. When basic financial services are available digitally, the reasons going to the branches will change. Clients will go to branches to get more personalized services specific to their situations and circumstances such as wealth management services and financial consulting.
Khan Bank does whatever is needed to protect its customers. Hackers and ransomware is a potential threat. To fight against those, there are many layers of protection available. We strive to be one or two step ahead of potential threats and do the necessary investment to protect our customers.
Employees at the branches will need to learn a lot more from the relationship manager perspective. The Bank will provide the relationship managers with the opportunity to develop themselves in such a way that they can provide services to clients in a personalized manner. We are trying to provide services at the next level and all the employees at the branches should upskill themselves and evolve. Their work will not reduce rather the quality of their work will change. In the era of digital banking, not only the bank employees but the clients themselves are going through a transition. Clients need to learn how to effectively use the digital tools at their hands to maximize the benefit they get. The Bank has a role to play in educating customers and contribute to digital culture.
- Super-apps have become the trend lately. Will Khan Bank follow this trend?
- Yes. We call that beyond banking and this is in the Bank strategy. We have already started building Khan Bank super-app. Our mobile application has a lifestyle menu. You can pay your taxes there. You can manage your personal budget. This trend does not only facilitate the lives of clients but it creates an advantage for e-commerce businesses. There are more than one million clients on our platform. The customer base is already congregated in one place which is a huge advantage for businesses, especially SMEs. Working with these businesses benefit our clients and our clientele help their businesses. In other words, there will be a mini digital ecosystem where Khan Bank, clients and suppliers are at one place functioning as a unit. The synergy created can benefit all three parties.
- If we look at the big picture, can Khan Bank digital transformation have an effect on the Mongolian digital ecosystem as a whole on a macro level?
- Definitely. Khan Bank is the biggest bank with the most number of clients. Just through its core banking services, Khan Bank supports SMEs, contributes to creating green economy, bring know-how of foreign institutions through its co-operations, brings in the latest technology through its investments in its own IT. As I see it, there is a huge potential. As a banking institution, the Bank’s operations are strictly limited by banking laws. However, through its operations and platforms, Khan Bank can be a stepping stone for other companies and institutions, which in turn benefits the economy and the society as a whole. We are certainly in a leadership position to set an example for other players in the economy and we have the resources to make our vision a reality.
- Sustainable development is the future. How does digitalization help sustainable development?
- There are some obvious ways that digitalization helps sustainable development. It reduces the use of paper, gas used to go to branches and saves energy by reducing the back processes. Other things we are doing to lessen our carbon footprint include reducing the number of servers so that heavy duty machines are needed less. One of the eight focus areas mentioned above is cloud computing. We want to transition to cloud based services and operate on server less technology. If we use starting server-less technology, the carbon footprint must start reducing. Going digital will definitely have a positive impact on climate change. We also upgrade our machines with more energy efficient alternatives as soon as it is available.
Also all our global partners who provide us with the technology we use now are all green minded. We are always looking for ways to make our businesses and technology more sustainable and we work together and unite our effort to be more green.
-Information security is of utmost importance to any establishments, more so for financial establishment. What does Khan Bank do to ensure the customer data is protected?
- Khan Bank does whatever is needed to protect its customers. Hackers and ransomware is a potential threat. To fight against those, there are many layers of protection available. We strive to be one or two step ahead of potential threats and do the necessary investment to protect our customers. The thing I can say with confidence is that Khan Bank has the best and the latest technology available in the market to protect information security and data of its customers.