Technology is bringing new changes across sectors such as telecom, retail and finance. With this, finance technology firms — popularly known as fintech — have become a new extension of the BFSI sector. Undoubtedly, the fintech landscape is charting new waters with introduction of digitised formats such as e-wallets, blockchain technology for settlement of contracts and mobile payments.
Deliberating a dialogue on the new challenges, opportunities and potential growth in the BFSI sector in relation to fintech were panelists Rambhushan Kannumuri, Head Corporate Finance Investec & Ex-MD Barclays; Bharat Panchal, Senior VP, NPCI; R Balaji, Senior VP, Mahindra Finance; Joseph Joshy, Senior VP, Reserve Bank Information Technology; Anurag Nigam, COO Tata Payments Solution; and Shailesh Dhuri, Executive Director Decimal Point Analytics, at a roundtable organised by SP Mandali’s Prin LN Welingkar Institute of Management Development & Research (WeSchool). The theme of the roundtable was ‘Emerging trends in fintech’.
Bridging the gap
Prof Uday Salunkhe, Group Director, WeSchool, has pioneered art knowledge creation by collaborating with industry specialists. Commentating on the event, he said, “The Fintech Round Table Conference 2017, apart from enlightening students via thought provoking panel discussions, is an endeavour to bridge the industry-academia gap. The BFSI sector is a highly regulated sector and maximum disruption has been witnessed here. A landmark change witnessed by this sector is the JAM Trinity (Jan Dhan-Aadhaar-Mobile), which has unlocked access to financial services to a billion plus population. Chatbots and roboadvisors have disrupted the wealth management segment. The BFSI sector is at a cusp of revolution.”
The opening session defined fintech as a concept that is enabling new-age initiatives for existing and new markets in finance. A further discussion on AI and machine learning highlighted the future impact on the investment banking industry with large-size firms shrinking post implementation of smart contracts, roboadvisors and other emerging technologies. Academicians took note that with the evolving pace of technology, B-school students should be trained better on their ability to learn-unlearn-relearn rather than specialising in a single technology. Adaptability is the key trait to succeeding.
Another topic that was discussed was blockchain. This new technology has many applications and companies are taking a lead through smart contracts using blockchain. Select Indian companies are working extensively on new technologies to bring customer delight.
The existing trend of cash and online transactions in other countries was analysed. Sweden has more than 90 per cent digital transaction in comparison to Germany, which has 80 per cent cash-based transactions.
The conference concluded on a note that BFSI has the potential to grow with technology playing a key role. However, trust and transparency, which form the crux of the BFSI sector, need to be consistent even with launch of new technology-enabled products and processes.