How is Emerging Tech Fueling Growth & Disrupting the World of Finance
Thank you all for attending!
It was a pleasure having you with us on this platform to discuss technological disruptions in the Banking and Finance industry.
Here is a quick snapshot of the event:
Speakers: The event saw three industry leaders present their views on how emerging technology plays a very crucial role in the BFSI sector.
- Digitization has had a profound impact on various sectors, especially BFSI. The opportunities that new technologies are bringing in are very high.
- Modern society cannot be envisioned without the role of banking; however, with all the good it has done, banking today has become a utility player. The arrogance of the industry for its age- oldness may restrict it from evolving.
- Disintermediation is being brought by digital technology. Digital mediums are everywhere causing an existential crisis in the banking sector.
- Lack of sustainability in Brick-and-mortar banking is giving rise to massive disruptive opportunities to FinTech’s and Nedbank’s. Power of disruption that AI, automation, cloud, mobile is bringing to the banking world is a trillion – dollar opportunity.
- Serverless elastic infrastructure, capacity- based approach, cloud- based technology, powered by AI ML are enabling quicker, easier and seamless ways of conducting transactions.
- Concept of Deep Tech; that is Data warehouses being created smartly by real time data. Smart Analytics is here to stay!
- Blockchains need to be nurtured in an ethical way. They are not backed by any tangible asset. It is just a promise. Might be difficult to last!
- Tokenization of blockchain, market economy based by supply and demand and the underline value. It is disruption in our faces, in the faces of regulators: These phenomena are real. The basic idea of unit that measures value can be done in an effective way.
- Augmented reality and Virtual reality are the future of BFSI sector.
- FinTech’s will evolve faster than banks as banks are regulated more heavily than FinTech’s. Banks are huger and more complex, decision taking time & processes are tedious. FinTech’s are agile, leaner and are catering to the dynamic customers.
Wondering how can Banking be successful?
- By being invisible and being a backbone to enablers and new age disintermediate channels.
- By being proactive and preempting the needs of customer.
- Banks are regulatory entity of government. They are not going to completely disappear. But banks need to stop playing the catch-up game.
- FinTech’s are not competitors; rather they are acceleration points. Cross industry adoption is needed for banking systems to thrive.
- According to RBI, there are no special regulation of working into public or private cloud, when it comes to privacy. Regulations are common. Few banking systems which conduct core banking through cloud, are working more seamlessly.
Let’s hear few Success Stories
- Bharat financial, India’s largest microfinance company helped 17,000 people open 40,000 new accounts across 2500 rural branches in India. Farmers, villagers, small scale industry workers, women, were empowered based solely on digitization.
- IndusInd bank went on a loan digitization drive where 1,50,000 loans were sanctioned in a short period and also 3 lakh print outs were eliminated helping the carbon footprint.
- Internationally, Capital One US moved 40 data centers in cloud in a few months and as a part of India success story RBM did the same with its many data centers within a short span; which traditionally would be a very time-consuming process.
Thinking automation would take away jobs for people?
- There are plenty of jobs available for people who evolve with time. AI ML is a commodity. It needs data. FinTech’s need to get the right amount of data into warehouses. Cloud aware people are in high demand.
- Automation cannot handle all the needs of customers in banking or Fintech sectors. Human touch is essential.
The Crux of the Conversation?
We are witnessing a once in a lifetime black swan event, which has compelled us to rethink new possibilities, new ways of doing business.
Banks and FinTech’s that invest heavily in technology adoption will thrive. The investment of Indian banking into technology is still lower than international ones, but rapidly now things are changing. Banking infrastructure and modernization should be a larger part of the investment structure. Banking institutions need to be customer-centric and have to evolve, through the use of disintermediation.
Adoption of technology ultimately aims to enhance businesses, operations and lifestyle in general.
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