Indian public sector banks are reportedly planning to implement the Global Competence Center (GCC) strategy in the financial year 2026-27, The Economic Times reported citing sources.
State Bank of India (SBI), which earlier this year established the first such GCC among state-owned banks, is expected to guide the rollout.
Financial institutions are also considering proactive data center models for potential inclusion in their next five-year business strategies.
A bank executive was quoted by ET: “Some of these initiatives will be pursued as part of the latest reform agenda. Banks will also look to combine forces to offer complete banking solutions, including blockchain technology, advanced risk assessment and fraud detection models.”
This development is in line with the EASE 9.0 reform framework, which aims to modernize public sector banks through improvements in governance, technology and risk management.
As part of these reforms, banks are preparing to build core AI infrastructure, including steps to license large language models (LLMs), build GPU strategies, and deploy private cloud systems.
In January, SBI announced that GCC would serve as a central hub to provide banking services to similar hubs in the Indian state of Karnataka.
The reforms, led by the Department of Financial Services (DFS), are designed to streamline processes and improve operating standards at government lenders.
Another bank executive commented: “Some of these initiatives were also discussed in the PSB Mantan last year. The idea is to prepare PSBs to leverage technology and improve productivity and scale through new business models.”
EASE 9.0 will also see public sector banks improving their compliance management systems and expanding their use of data tokenization and anonymization solutions.
“Indian PSBs to adopt Global Capacity Center Strategy by FY27 – Report” originally developed and published by Retail Banker International, a brand owned by GlobalData.
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