NEW FRONTIERS

The latest edition of the Business Today–KPMG Best Bank Awards celebrates financial services players that are well ahead of the curve.

The ` 141 lakh crore Indian banking industry has been in the public glare for all the wrong reasons, but it is not all gloom and doom. While instances of fraud, deteriorating asset quality, lower credit offtake, challenges on the bankruptcy code are hogging the limelight, there is excitement on the future of banking. Bankers are already laying the foundation for building retail businesses like micro loans, affordable housing and consumer durable financing.

The digitisation journey is in full swing in the private banking space. Realising the needs of upwardly mobile customers, banks are rebuilding IT models, collaborating with fintech companies for innovative solutions and using data analytics for cross selling. They are also using AI and software robotics to shift repetitive jobs to machines and testing tools like blockchain for future banking. The results are visible – the turnaround time for getting personal loans and credit cards has been reduced to a few seconds. People can now open an account with a bank in the middle of the night through e-KYC.

This time, the BT–KPMG Study is also celebrating the best in fintech. Successful companies in payments, lending and value-added services are making banks’ job easier. There is also a rural and semi-urban piece where 60 per cent of the population resides and where the next battle for banks will be fought. Finally, consolidation has also begun in the sector. There will be more action in the space; only the fittest would survive.