Executive Director, Bank of Baroda
1. What is your take/comments on the Evolution of digital platforms, disrupting the way of banking –Do you think it will help faster the movement, increasing transparency or reduce security, increasing cybercrimes?
- The very essence of “Disruptive” innovations is an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market-leading firms, products, and alliances.
- Many have predicted the fall of the traditional bank, as disruptive new entrants win share by offering a better customer experience through new products and channels.
- Yet, despite the emergence of new competitors and models, I believe the traditional bank has a bright future – the fundamental concept of a trusted institution acting as a store of value, a source of finance and as a facilitator of transactions is not about to change.
- Having said that, the way our previous generation used to experience banking will not be the same as the industry strives to deliver more and more customised solutions to its customers.
2. Future of Digital, Reimagine digital, what’s the next big thing?
- Financial services companies are operating almost in a marketplace under siege, a new paradigm where the fundamental definition of how customers experience and interact with a bank is being challenged and redefined.
- Radically transformed Bank models will emerge in the near future. Current scenarios confirm the future to emphasize on innovative technologies to vastly facilitate banking. Banking in the future will be collaborative, exciting and will raise the bar in setting new standards. Consolidation in the industry is therefore, inevitable. The role of ‘Digital’ will be so much so that today’s Digital Banking will be the new normal for tomorrow’s customers.
- In addition, Data and Analytics will be redefining future of digital and will drive new markets, as Bank will be able to predict customer behaviors and offer hyper-personalized services. Data and analytics will provide new opportunities to increase revenue, improve risk profile and increase operational efficiency across banking value chains.
3. Though urban India is fast adopting the digital platforms, what do you have say about rural India. How are we preparing ourselves to prepare the Rural India for digital adaption?
- Recent changes in Banking and regulatory ecosystem are pushing digital adoption in Rural India. Innovations in digital payment landscape (UPI, AEPS, QR Based Payments) emergence of new payment banks, easing the norms of mobile wallet transactions, government encouraging public with incentive schemes, localization of mobile apps offering banking services in regional languages etc. are helping rural India for digital adoption.
- The recent launch of the India Post Payments Bank (IPPB) is one such major step to towards addressing the concern of Digital adaption of rural India. IPPB seeks to leverage the expansive network of the postal department to ensure financial inclusion for the masses.
- It will be still sometime till we have Indians in the rural areas switching to Digital baking completely, but the introduction of various government schemes and IPPB that promote financial inclusion, is a huge step towards our goal of being a Digital Economy
4. Your views on The Economic Times BFSI Innovation Tribe and how important do you to feel is the need of organizing such summits, , that we all can collaboratively work towards the common goal
- Over the past few years, innovative applications and disruptive technology has contributed significantly towards the shaping of the financial services industry. The Economic Times BFSI Innovation Tribe brings the leaders of both the industries, the innovations and the bankers, under the same platform and encourages discussions and deliberations on the future and current challenges. Such sessions definitely serve as a catalyst for innovative ways for inclusive banking.
5. Quote of 50 words
Financial Inclusion is critical for the socio-economic development of the country, but there are significant gaps in this area and a large proportion of country’s population remain unbanked or underbanked. The financial institutions of the country along with innovators have the potential and the responsibility to support the government by introducing inclusive banking through new types of Bank models, sign non-traditional alliances to make banking affordable, invest in Fintech capabilities to make banking customer centric.