Technology is the tool for the boom
The Indian banking sector is increasingly becoming customer focused even as it has become highly competitive. The sector is passing through an exciting phase of technology induction supported by innovations in the sphere of Fintech. There has also been a welcome change among bankers to encourage fintech innovators and develop apps and systems specifically patterned for banking operations. Mobile banking is one singular area where fintech innovators have made a significant mark.
Even the highly conservative Reserve Bank of India is responsive to the innovations. RBI today undertakes its own analysis in a quasi-regulated environment and then works on creating regulations around innovations without saying a flat no to an innovation or an idea even if it does not at the outset appear to be beneficial to the financial services sector. This is indeed a welcome change and is one of the reasons why fintech innovations and accelerators are thriving in India.
Some of the most trending hotspots in fintech today include Digital Banking, Mobility, Payment Systems, Analytics, Customer Experience and Information / Physical Security. These transformations may not become successful unless complemented by GenNext infrastructure and supporting strategies.
The Indian financial services sector today has a wide spread - 27 public sector banks, 20 private sector banks, 43 foreign banks, 56 regional rural banks, 1,589 urban cooperative banks, 300+ DCCBs and 93,550 rural cooperative banks, nearly 100 insurance companies and innumerable NBFCs. In addition, as part of the financial inclusion policy, RBI has granted in-principle licenses to 11 payments banks and 10 small finance banks.
The government and the regulators in this realm are today on a single page to effect a total transformation of this sector and expand its reach to the population that is either underserved or unserved by the sector. The government on its part has implemented innovative financial inclusion schemes like PMJDY, PMSBY and PMJJBY and has taken up initiatives like payment of wages to MGNREGA workers through banks or BCs, convergence of Aadhar with financial inclusion and direct benefit transfer through banks accounts. In addition, innovations like the Unified Payment Interface by the National Payments Corporation of India are virtually providing impetus to the transformation.
Some of the important factors that will spur technology adoption in banks to fulfill the goals of financial inclusion are:
Aggressive improvement of technology infrastructure will enhance customer experience and gain competitive advantage
At least 15% of total spending of a financial services entity should be on technology, which is expected to increase at an annual rate of 14.2%
Rapid foothold and focus on SMAC (Social, Mobile, Analytics and Cloud) will help financial services entities to reach new customers
Customer Relationship Management and Data Warehousing will drive the next wave of technology in banks
Proliferation of ATMs, Micro ATMs, Biometric ATMs and Mobile ATMs will help banks to reach out to the rural mass
The mobile phone revolution that is transforming the country will create a banking revolution as well
Easy methods of remittances and other electronic form of payments will ensure that the unbanked are brought into the ambit of banking
Financial services institutions will increasingly depend of Big Data and analytics in a more focused manner to understand the needs of the customers and create products and services required by them
Offering new opportunities to engage and interact with customers and thereby build relationship and grow revenues; social media has a crucial role to play in this.
Now in its 5th edition – IBEX India the India’s most comprehensive trade fair and conference on banking technology, equipment and services is striving to promote the Financial Inclusion Policy of India by bringing all technologies and services under one roof.
Conceptualised with the vision of bridging banks with technology, IBEX India has successfully achieved its vision and has been unanimously encouraged and supported by the Indian Banking Sector.
The last edition of IBEX India in 2015, featured 106 exhibitors from different countries displaying a wide array of products and services across ATMs and kiosks, software solutions, electronic and physical security solutions, data management, ICT, banking equipment, etc. and 2,200+ banking officials from 23 countries visiting the exhibition.
Given its unique profile, IBEX India caters to the technological needs of the banking sector and banking services sector, to make it customer friendly and also supports the banks’ need to implement Governments’ latest programmes and projects.
IBEX India has been unanimously supported and appreciated by the Indian banking industry as a landmark event. Leading Indian banks across the private and public sector have been supporting IBEX India since its inception in 2011.
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