Con­fer­ence Re­port BankBazaar ....

BankBazaar or­ga­nized its 3rd con­clave on Paper­less Fi­nance Con­clave in Mum­bai. Nine key take­aways from the con­clave:

Banking Frontiers - - Highlights - me­hul@bank­ingfron­


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

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