Coun­ter­ing the per­ils of il­licit trade

FICCI Business Digest - - Content -

“The re­port re­leased at the con­fer­ence shows that the one brahma-as­tra which can re­ally un­leash un­prece­dented value for In­dian banks is ‘data’. Banks have the high­est amount of data about their con­sumer per unit of rev­enue earned com­pared to any other in­dus­try and can lever­age this strength to their ad­van­tage”, said Dr. San­jaya Baru, Sec­re­tary Gen­eral, FICCI.

The re­port cat­a­logues some very in­ter­est­ing in­sights across broad range of top­ics con­cern­ing In­dian bank­ing. The fol­low­ing are the key in­sights of the bank pro­duc­tiv­ity sur­vey: Trends in the In­dian bank­ing in­dus­try In­dia's credit in­for­ma­tion in­fra­struc­ture is ad­vanced Rev­enue pool ac­ces­si­ble to banks in In­dia is Rs. ~6.50 lacs Cr, and is at an in­flec­tion point – set to change sig­nif­i­cantly in next 5 years In ad­vances, MSMEs to be the key growth driver- sig­nif­i­cant prom­ise in "for­mal­iza­tion" of MSME credit, re­tail to sta­bi­lize, how­ever more pain ex­pected in cor­po­rate. Dra­matic shift in age pro­file of bor­row­ers – NBFC gain­ing dis­pro­por­tion­ate share in youth seg­ment Digital adop­tion is grow­ing rapidly – but re­gional dis­par­i­ties are very sig­nif­i­cant Im­per­a­tives for banks Banks have the high­est amount of data about their con­sumer per unit of rev­enue earned com­pared to any other in­dus­try Ad­di­tion­ally, they oc­cupy a po­si­tion of trust with their cus­tomers. As they keep the cus­tomers’ money safe and de­ploy it pro­duc­tively with con­sent, they can do the same about the cus­tomers’ data as well

The rev­enue pool of In­dian bank­ing is at an in­flec­tion point and is set to change dra­mat­i­cally over the next 5 years. There has also been a dra­matic shift in trans­ac­tion pro­file of banks – with a no­tice­able ac­cel­er­a­tion in digital adop­tion, though the re­gional dis­par­i­ties are sig­nif­i­cant.

In the cur­rent en­vi­ron­ment where In­dian Banks have to play a sig­nif­i­cant role in sup­port­ing the na­tion, they face head­winds from mul­ti­ple fronts.

FIBAC re­search sug­gests that us­ing data in ev­ery com­po­nent of the bank­ing busi­ness model can add cu­mu­la­tively INR 3 lakh crore to the bot­tom line over next 5 years – al­most 0.4% of in­cre­men­tal an­nual ROA“, said Sau­rabh Tri­pathi, Se­nior Part­ner and Di­rec­tor, BCG.

A sec­tion of the au­di­ance at ‘FIBAC 2017’ .

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