New Delhi, Mar 10 (IANS): It is important to win the customers' trust in any system, said Ravindra Pandey, Deputy Managing Director (Strategy) & Chief Digital Officer, State Bank of India (SBI) at a Virtual Conference on Future of Digital Banking in India: Challenges and Way Forward organised by PHD Chamber on Wednesday.
Pandey said that digital banking or Figital is here to stay and is the future but it is equally important to safeguard the interest of all stakeholders.
Cyber security is extremely critical for the success of digital banking. It is the objective of banks to create and win the customers' trust, such that all transactions are routed through banks as is presently done by multiple payment apps. Fintech has bought about changes in the customer mindset.
He said that its an era of Techfins rather than fintech. Digital Banking helped enhancing customer relationship, engagement and satisfaction and helped in reducing operating cost, processing cycle time, among others.
Pandey felt that there is immense potential in the payment space and it will continue to grow in leaps and bounds. Also, the digital banking is thriving on artificial intelligence, technical algorithm models which help to find out the customer's ability to pay and also intention to pay along with credit ratings of the customer. He said that the conventional operating models have given way to new channels. There are three areas in fintech that needs to be intertwined to make it a success - payment & remittance; process improvement - compliance & risk management; and customer engagement.
Speaking on the occasion, Sanjay Aggarwal, President, PHD Chamber of Commerce & Industry said the banking industry is moving towards a more collaborative and open environment while focusing on data protection and minimising systemic risks. He felt that the Covid pandemic has placed banks under extreme stress as revenue sources plummet and credit risks rise exponentially. Unprecedented economic disruption, a competitive market, rising customer expectations, and external forces have driven the banking industry to explore new business models centered around digital solutions.