‘From financial inclusion to digital financial inclusion’
Governance Now’s 3rd India Banking Reforms Conclave: Rebooting Banking with Reforms and Digital Innovations held on September 7, 2018 at The Taj Vivanta, Mumbai focussed on how digital innovations in the banking sector in India were “rebooting banking, facilitating financial inclusion and bringing in reforms in banking and financial services”.
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| Governance Now Managing Director Kailashnath Adhikari speaking during the inaugural session |
Inaugurating the conference, Governance Now Managing Director Kailashnath Adhikari welcomed the speakers of the Inaugural Session. Talking about ways and the need to reboot banking in India, he aptly summarised the status of banking reforms in India, “The buzzwords across offices have changed from Financial Inclusion to Digital Financial Inclusion,” he said, setting the tone of the conclave.
Reinforcing the need to update and upgrade technology and personnel, Institute of Cost Accountants of India President Amit Apte spoke about the programmes introduced by ICMAI to train professionals to meet the new digital challenges of the day. Perfios Software Solutions Head of Sales and Strategy Sabyasachi Goswami concurred and described the scenario as “a digital tsunami in the banking sector” and stressed on the “need to evolve ways to cope with it”. He further stated that demonetisation, digital media campaigning and introduction of GST were the three most important factors for policy reforms in the sector.
Highlighting the gaps in financial inclusion, RBI Director (Part-time) Satish Marathe said formal linkage to financial assistance is still very low today in rural areas where the need to support micro-entrepreneurs is grave and real. He emphasised on the need to cross language barriers and promote language media for the poor in rural as well as urban India. BSE Managing Director and CEO Ashishkumar Chauhan brushed upon the history of banking sector describing banking as “a bundle of services”.
Citing examples of technological advancements in the past, he said that “past cannot be a true indicator of future as things change very fast and there are many variables at play. In a short while, one may find himself on a completely new trajectory that the one envisaged at the outset.
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| RBI’s Former Deputy Governor S S Mundra speaking at the event |
The session was concluded by RBI’s Former Deputy Governor, S S Mundra who described the banking system reforms as “a journey and not a destination”, constantly evolving in this so dynamic sector. He emphasised on the need for innovation but pointed out the stifling impact of regulation which must be checked. From an organisation’s point of view, he advised stakeholders not to ignore small issues as those when left unresolved, tended to escalate and damage the organisation gravely.
An industry presentation was given by Perfios Software Solutions Director – Key Account Relationship, Neeraj Amin. The presentation detailed how credit institutions are becoming increasingly interested in day-in/day-out operations.
During the plenary session on SBI Digital Transformation in Banking and Financial Services General Manager (IT), Dr. S Upendra Rao spoke about digital transformation bridging the digital divide. IndusInd Bank EVP Head-Technology Mridul Sharma emphasised on the need to understand block chain to demystify it, further concurred by IDRBT Senior Domain Expert Butchi Babu. BOB Financial Solutions Ltd., Chief Information Officer Sunit Vakharia stated how block chain transforms the way data is used and is critical to understand the entire process as block chain is the predictive technology for payments in the future. Perfios Software Solutions Head of Sales and Strategy Sabyasachi Goswami reiterated the importance of block chain citing a WEF report that by 2025, 10 per cent of GDP will be routed through block chain. DCB Bank Chief Innovation Officer Prasanna Lohar stated that block chain has to be integrated with the banking system for digital transformation in the sector.
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| Perfios Software Solutions Head of Sales and Strategy Sabyasachi Goswami speaking at the event |
The panel discussion on cyber fraud prevention and cyber security in BFSI witnessed a very interesting and informative discussion. Axis Bank Chief Information Security Officer (CISO) Ashutosh Jain gave the opening remarks and moderated the session. Defining cyber security as an existential risk CISO, Maharashtra Cyber Police Special Inspector General Brijesh Singh remarked that cyber-attacks have become very sophisticated now and often occur simultaneously across nations.
He added that maturity of the models depends on the ability to understand, respond to and recover from cyber threats. IDBI Bank CISO Gurprit Grewal spoke of the laxity of people when it comes to privacy further adding that people are not aware of SPI and PII which poses a big challenge in cyber security. Bank of India CISO Naga Mohan Gollangi spoke about the security gaps in the system and how those are exploited for attacks. SBI Life Insurance Co Ltd., CISO Manoj Nayak and Ernst & Young’s Director - Cyber Security and Risk Analytics Venu Thotakura spoke of the risks and concurred with the panel on social engineering being the biggest threat to cyber security. The way forward is investing more in R&D and better sharing of threat intelligence.
The panel discussion on Banks, FinTech, Financial Inclusion and the potential to transform financial services commenced post-lunch with opening remarks from SP Jain Institute of Management and Research Professor Dr. Krishna Gopal Karmakar. He stated that to improve cost-effectiveness it is important to ensure that consumers are able to use technology. Capita World’s National Business Head Bhaumik Shah spoke about FinTech and its potential to transform financial services. NABARD’s General Manager – FI & Banking Technology Dr. Nageswara Rao discussed NABARD’s financial literacy programmes for small and rural banks with a focus on farmers, women, SMEs, etc. for financial inclusion and financial protection. He pointed out that connectivity is the biggest challenge in rural areas. IDBI Bank Executive Director Abhay Laxman Bongirwar spoke of ways of reducing cost and the best way to do so is by technology adoption. Union Bank of India General Manager – FI, PC Panigrahi suggested that moving forward, primary activities should be developing channels, ease of use and cost effectiveness and to ensure inter-operability of financial systems.
The next session on strengthening corporate governance in BFSI was moderated by Indian Institute of Corporate Affairs’ Head – School of Corporate Governance and Public Policy Dr. Niraj Gupta. He pointed out that ethics and integrity are critical to good governance and banks are basically in a business of trust. He added that the focus is now shifting from financial services to financial empowerment. Ernst & Young’s Partner – Forensic and Integrity Services, Financial Services Vikram Babbar commented that every corporate entity must have a code of conduct and a code of policy. An expert in corporate governance, Dr. Ganesh Raut stated that there is a need to understand the philosophy of governance and empower independent directors to strengthen it.
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| State Cabinet Minister – Finance & Planning and Forests Departments Sudhir Mungantiwar at the event |
The final session of the Governance Now 3rd India Banking Reforms Conclave in Mumbai concluded with keynote address delivered by State Cabinet Minister – Finance, Planning and Forests Departments, Government of Maharashtra Sudhir Mungantiwar. He spoke about the significance of Mudra Yojana to provide loans to non-corporate, non-farming small and micro enterprises and how it is helping in reforming the banking sector by financial inclusion. Mr Mungantiwar also spoke about technological advancements in the banking sector reforms and expressed hope that artificial intelligence and technology will take banking sector reforms to the next pedestal.
The conclave was concluded with a vote of thanks and presentation of mementos to all the speakers.
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