'Banking ab haath mei': How technology has brought paradigm shift in banking

R. Subramaniakumar, MD and CEO, RBL Bank, on Friday said that with technology, the world of banking is moving in the direction of 'banking ab haath mei', and as bankers it is important to maintain data security and trust of consumers in the evolving landscape.

"The most important thread which is missing in the fintech and the banking world is the trust factor," he said at BT’s Banking & Economy Summit in Mumbai.

Talking about the expectations of consumers today, Subramaniakumar said, "What differentiates today's consumers is their influence of e-commerce -- which involves the ease and convenience of doing an e-commerce transaction.. Can it be replicated here is a challenge on this side of the table."

"The expectation from the consumer's point is that why it can't be replicated here.." he added.

Subramaniakumar further said that be it the GenZ or GenX or baby boomers, there is a common thread that moves around between them -- which is "ease", "convenience" and "cashbacks and rewards". As institutions, it is important to cater to these needs of the consumers.

Agreeing to the same, Murali Ramakrishnan, MD & CEO, South Indian Bank, said that today customers want everything at their convenience. "With technologies and tools available to all of us -- fintechs, NBFCs and small banks -- there is an opportunity available for everyone," he said.

Ramakrishnan also added that technology can help bridge the gap between small and large banks.

"Today, the biggest advantage for a brick-and-mortar office or for a large bank is the scale, and the scale comes from the distribution channels which are basically spread across the country for a large bank. It probably may not be there for a small bank," he said.

He further added, "With digital coming in, this is not a concept anymore. If I can offer convenience and product suite which is best in the industry, I don't necessarily have to have a brick-and-mortar space. Thanks to technology, whether it is collection or analytics, underwriting or sourcing, everything is today available digitally. If you look at the entire paradigm shift as an opportunity in partnerships, then the whole country is available for you to market."

The session saw Rajnish Kumar, chairman, BharatPe and former chairman, SBI, R. Subramaniakumar, MD and CEO, RBL Bank, Murali Ramakrishnan, MD and CEO, South Indian Bank, Sunil Mehta, Chief Executive, IBA in conversation with Sourav Majumdar, Editor, Business Today.

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