Conference Report BankBazaar ....
BankBazaar organized its 3rd conclave on Paperless Finance Conclave in Mumbai. Nine key takeaways from the conclave:
Amitabh Kant, CEO, NITI Aayog: Of the 24 billion financial transactions that took place last year, 21% were digital. There is also a sharp 8% decrease in physical channels and 5% decrease in the use of ATMs, which is truly remarkable. This is a tremendous opportunity to enable 100% paperless, presence-less finance in India. This helps in the reduction of operational costs and curbs mis-selling of financial products leading to NPAs. Fintech companies, investing heavily in innovative ideas, are expected to create a market of over $1 trillion in the next 5 years. Mobilebased paperless access to financial products for every Indian will ensure financial inclusion, increase credit flow, further the growth of the insurance sector and increase participation in our securities markets.
S.S. Mundra, former Deputy Governor, RBI: Time is now ripe for India to make a big leap in the field of digital finance instead of settling for incremental reforms and being hesitant, as we now have global examples of fully digitized banking systems working successfully in other countries. We have the much-celebrated trinity of JAM – Jan Dhan, Aadhaar, and Mobile – and we also now have India Stack. We are miles ahead in this area compared to the western block or even to our counterparts in the Asia-Pacific region. In many of these countries, they have been able to successfully introduce full-range digital banks. If that is the reality and those are the examples available to us, I think we need to relook at our hesitation in crossing the full distance.
Arvind Kapil, Group Head, Unsecured Loans, Home & Mortgage Loans, HDFC Bank: One of the clear insights we got is that the customer clearly wants real-time consumption. A lot of innovation and listening to the customer is going to be key to the disruption. Process change is what will change the game. Product is not new, but if you make that process paperless, adoption rate shoots up ‘n’ number of times.
Rajiv Anand, ED, Axis Bank: Authentication via cellphone app instead of other devices is something we could look at. The number of customers who open a bank account with us through eKYC mode is between 30-40%. They now want to open their accounts instantly and digitally.
Shyamal Saxena, Head, Retail Banking, India, Standard Chartered Bank: Are we making it easy for the consumers to avail of financial products? How willing are we to give up the baggage of the past? It will take some courage and some experimentation to get it right. In a controlled way, we can make progress and take this to the next level.
Anup Bagchi, Executive Director, ICICI Bank: Digital allows you to experiment at a marginal cost. If it works, it works and if it doesn’t, you can kill it very easily.
Murlidhar Lakhara, Chief Compliance Officer, IndusInd Bank: Integration of eKYC, DigiLocker and Aadhaar can be a game-changer in making the customer onboarding process cycle paperless and presence-less.
Adhil Shetty, CEO, BankBazaar: As much as 60% of our customers – and we believe this number could go as high as 90% next year – are willing to submit and authenticate their documents online. Paperless penetration and usage are increasing dramatically also because our financial partners are adopting it. By going paperless, they have lower losses, higher activation, and more usage because they’re getting a very tech-savvy customer base that is e-authenticating. Together, we can move India to a paperless future.
S.S. Mundra, former Deputy Governor, RBI: There is a difference between innovation and regulation. Innovation is a continuous process whereas regulation is a batch process. The best way is not to try and change ‘regulation’ to a continuous process, but to reduce the time taken to integrate two batches of change. But, such advocacy from the industry, to the government and regulators, needs to be proven true on the touchstone of whether these can deliver better lives to the users, efficiency in the process and can take care of all possible risks.
Participants at a panel discussion during BankBazaar Paperless Finance Conclave