Financial institutions need to modernise their technologies, says FIS CEO Gary Norcross

The banking industry has changed in the technology space more rapidly in the past three years than it did in the two decades, said Gary Norcross, President and CEO, FIS, a global financial services technology and outsourcing company. Norcross believes financial institutions are at a point where they can't afford to sit on the sidelines. "If they continue to do so, they would be disrupted," says Norcross. Gary Norcross in conversation with Business Today's Anand Adhikari talks about the developments in the digital banking space. Here are the excerpts.

Assessment of Indian banks

All financial institutions globally have a lot to do to progress technology needs. Many new banking licences have been issued lately. Those banks use better technology than, say, traditional well-established banks. But all financial institutions, including Indian banks, are required to modernise technology in the next few years.
 
Challenges for banks in integrating Fintechs

Overtime, the challenge will be of interoperability. People are solving it through open banking frameworks. Financial institutions will continue to expose themselves to different providers and financial technology players, and the systems will become more open.
 
Security in digital banking, Fintech engagement

The financial institutions need to consider this seriously. Cyber criminals are more sophisticated these days. Financial institutions dealing with Fintechs need to see where they are in security design protocols. Many starts-ups don't take the security issue seriously. This can cause problems in the overall financial services ecosystem. At FIS, everything we do is based on our security design principles.    
 
Banks emerging as tech companies  

Many large tier-1 banks globally consider themselves as tech companies. When you look at machine learning, artificial intelligence, voice, digital - all of them are driving ways for financial institutions to be more efficient. At FIS, we not only focus on AI, but advanced data analytics and user experiences as well. All this will drive cost out. Frankly, consumers need efficient and low-cost ways to gain access to financial services. India is making progress in the underbanked and underserved market, but it will require advanced technology to win.
 
Banks reluctant to share data

Financial institutions are not taking the advantage of their data. It is less about sharing and more understanding it. Historically, financial institutions have been inefficient in using data. Financial institutions already have more data than most other data providers. The banks should be able to predict life-cycle engagement with customers. Globally, banks don't share data. There are regulatory concerns too. Banks should leverage on this and provide better service.

Opportunities in India

We already have eight new banks in India. We have got 72 clients leveraging our advanced payments and switching capabilities. We have got a tremendous opportunity in the area of digital banking technologies. We are very strong in the area of corporate treasury.