Top BFSI leaders highlighted how banks are unable to keep up with the digital data and services and how, soon, pension, insurance and capital markets will take the market share of bank deposits.
“Pension, insurance and capital markets are playing out well and somewhat taking the position of bank deposits,” said B S Venkatesha, DMD & CRO, NaBFID.
He further revealed that huge discussions are going on around three areas — deposit growth not matching with credit growth, the CD ratio which is beyond 100 which is a big concern and now, the increased levels of borrowing especially in the short term.
He asserted that people have become net borrowers now whereas they were net savers earlier.
Seshika Fernando, VP – Banking and Financial Services Technology, WSO2 further added on how banks and NBFCs are left behind because of rapid digitisation, digital data and services.
“Apart from larger banks, the thousands of banks and 9000 odd NBFCs are unable to keep up with the demand for digital data and services,” she stated.
Escalating Risks in BFSI
Sanchita Mustauphy, CRO, Aditya Birla Capital highlighted that digitisation is happening rampantly in BFSI and cyber risks, modeling risks are the two most important type of risks seen today.
Resonating with Sanchita, U S Majumder, CRO, Canara Bank highlighted that for banking, the IT related guidelines have come little later while their technology has gone ahead, which is a very typical challenge in the Indian market.
Speaking on risk mitigation, Siddarth Agarwal, Founder and MD, Mobicule Technologies asserted that risk mitigation strategies have to evolve with time and we can’t be using old strategies again and again.
S V Sunder Krishnan, CRO, LIC seconded this and said that there are three aspects that needs to be looked into to mitigate risks — one is the people element, second is the processes involved and third is the best technologies available.
Damodaran Chambath, CRO, Federal Bank also added that risks can be controlled and to some extent mitigated but it will also reduce the ease of doing business to some extent, so it is kind of a balancing act.
“When it comes to bringing new technologies, first we look at controls, in controls the ease of doing business factor will also come,” he stated.
Ashwini Kumar Choudhary, CRO, Union Bank of India also added that past is not the right indicator of what might happen in future, if the analysis for managing risks is based on past data it won’t work.
The BFSI leaders were speaking at the ETBFSI CXO Conclave in Mumbai.
