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Indian BFSI should bank on Technology!

By Deepshikha Singh, Managing Editor, Consultants Review

Technology is changing the way businesses operate and deliver products to consumers in many sectors, particularly in banking, financial services and insurance (BFSI). There are many innovative methods and technologies are being incorporated into the financial activities to help develop hassle-free and secure functioning. Some of the areas like customer services, online payment and fraud detection are seeing major technological advancements worldwide under BFSI. As a result, all financial institutions are pushing their internal efforts to innovate and embrace the disruptive nature of IT-enabled services, while leveraging in new technologies like Cloud, Analytics, Automation, Artificial Intelligence and Internet of Things. This indicates the need for stronger IT-enabled service providers in BFSI, who can offer Customer-Centric and Advanced Options including Datacenter Virtualization, Server-Storage Consolidation and Optimized Communication Networks.

Technology is changing the way businesses operate and deliver products to consumers in many sectors, particularly in banking, financial services and insurance (BFSI)

India’s Banking, Financial Services and Insurance (BFSI) is a vast market comprising a range of crucial service industries such as core banking, retail, private, corporate, investment, credit /debit cards and also stock-broking, payment gateways, mutual funds, insurance covers and so on.  According to the latest studies, BFSI sector in India is valued at Rs. 81 trillion and is likely to become fifth largest in the world by year 2020 and third largest by year 2025. Driven by the increase in working population, burgeoning rural banking development, soaring digital trends and growing disposable income, introduction of more banking and related services are yet to hit the market.  In the context of beefing up financial service demand, every financial institution requires intelligent systems to handle different sets of processes including verifying the address or credit score of the customer.

While the uncertainty in regulation and deregulation as well as the increasing cost of compliance are also posing a great deal of distress to financial institutions. With the future all set to bring monumental changes to banking and finance, every financial institution has to evolve, grow and thrive with a strong, sustainable and growth-oriented compliance. This intensifies the significance of well-experienced outsourcing service providers who are subject matter experts in this challenging domain.

Owing to the Pradhan Mantri Jan Dhan Yojana, there has been a tremendous rise in India’s account ownership. The World Bank’s Global Findex Report 2017 indicates that almost 55 percent of the financial accounts opened globally are from India itself. There were only 35 percent bank account holders in 2011, India witnessed a great jump in the account ownership during 2014-2017 with upto 80 percent population owning a bank account in 2017. While inclusive banking always existed, the real thrust of Financial Inclusion came in 2005, when the Reserve Bank of India highlighted its significance as a critical indicator of development and well-being of society, and urged banks to work towards reaching out to the masses, offering banking services down to the hinterland.

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