Marvellous technological changes and revolution in our country has brought out a great Digital Revolution in India, and financiers and banks unable to come upto the changed level, will be out of race.
A panel which discussed on RIDING THE REVOLUTION: DIGITILISATION, DATA AND DIVERSITY opined that the Banks and other lenders should come together and private banks in turn have a big challenge to compete with Financially advanced technical firms, with improved technologies being brought into the system. The forum took up various issues for discussion and the discussions hovered around various issues including the following:
- International banks, who are unable to compete with the private sector lending institutions in the retail sector, can think of going for digitally advanced systems such as Unified Payments Interface.
- UPI is a platform enables users to make instant bank to bank payments and make payments and also collect money, through mobile numbers or virtual payment addresses.
- It is estimated that around 25% of personal loans and around 20% of credit card customers, are acquired through digital mode, thus making digital marketing a game changer for banks since they also act as Electronic branches.
- Fintech firms (through digital modes) are now challenging the conventional banking and financial services would turn out to be more democratic in the coming days. The outdated modes in Indian Banking has been the highest risk factor the forum felt.
- The forum also felt that the number of state run banks should be reduced, and either they should be merged or privatised. Also, many parts of India are without adequate banking facility, which should be addressed on priority.
- Cyber risks are on the increase and banks should take steps to strengthen themselves against vulnerable-state sponsored cyber-attacks.