Banking And Financial Sector Gears Up For Digitization

The digital era has opened up a plethora of opportunities for BFSI-Banking, financial services and insurance companies. This is exciting and challenging at the same time. The opportunities are vast with internet, tablets and mobiles pulling away from the traditional instruments of banking like the ATMs and branches. PhillipCapital’s Ground View conference looks to delve deep into integrating digitisation into BFSI, to explore untapped sections of both urban and rural India.

Digitization in industries is even more relevant at this time when the government has by itself spearheaded a campaign to ensure the availability of government services electronically. Technology in business has had a role reversal- from that of an enabler to a strategic partner with programmes like these.

With the Digital India programme, the government aims to improve online infrastructure by empowering the technological know-how of the citizens. In other words, digitization is driving a greater innovation, helping improve service at various levels as well as their outcomes.

The biggest advantage of the coming in of digitization into BFSI has been that a more customer-centric approach is created which enables banks to target new audience. The benefits of such an approach passes on to the larger economy. Though the advantages of digitization often overshadows the challenges, the debate on whether it is a competition or collaboration is still on in business circles.

According to Rajesh Prasad, VP and Head of Rupay, NPCI, "Innovation in any sector cannot happen in the absence of competition. Thus competition can’t be taken away in the attempt of digitizing BFSI." Rajpal Duggal, Group President of Corporate Strategy at Oxigen Services, has a similar opinion, “Healthy competition between banks would go a long way in generating better services for customers.” In fact, in any sector customer convenience is the larger service that competition provides.

Collaboration at the same time holds equal or more weightage in the digitization process. Mahesh Makhija, Partner at E&Y says, “Digitization in BFSI should have shades of both collaboration and competition. It can’t happen in the absence of either of these parameters.”

Incorporating digitization in BFSI will not only redefine how they do business but also make it faster and efficient. Digitization undoubtedly will increase customer loyalty while helping BFSI find themselves in a sweet spot.