Countering the perils of illicit trade
“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’ .