Challenges ahead of digital transformation in BFSI

Risks are hidden in a highly digitalized world. There is proliferation of information and communication technology. The sea changes taking place all around including the payment and settlement system, digital banking and mobile financial services calls for constant attention of regulators to stay ahead of the curve, so as to ensure safety, security and orderly developments amidst the emerging and evolving risks," said Dr Barendra Kumar Bhoi, former Head of the Monetary Policy Department at RBI.

He said this while addressing a webinar on Digital Transformation in BFSI Sector, which was held by PRMIA Bangalore Chapter recently. Covid-19 pandemic accelerated the Digital Transformation in BFSI Sector. Thought leaders from diverse domains came together and shared their valuable experiences and perspectives to combat emerging and evolving risks from digitization. In attendance were senior executives and Industry leaders from leading Banks, Insurance Companies, NBFCs, SFBs, Risk professionals, academics and students.

Even as the government is vigorously pushing on digitization of payment in the BFSI sector, Dr Bhoi, the Chief Guest at the event, said that challenges are many. The case in point is RBI's imposing ban on MasterCard to acquire new customers from July 22 on the issue of data localisation.

While the digital divide in India is intense, the digital ecosystem is weak in rural areas. Frauds and cyber related crimes are high, whereas risk manaStory on digital transformation of BFSgement is inadequate. Therefore, Dr Bhoi stressed that regulators should be ahead of the curve: SRO, Ombudsman, sandbox are not enough. He also pointed out that customer satisfaction was inadequate due to increasing cases of mis-selling, failure of transaction and poor dispute resolution.

V Chandrasekhar, Senior Advisor at Indian Banks Association, highlighted how banks are leading the digitization movement through innovating new products, transactions and more efficient services. There is an urgent need of re-skilling employees in risk management into Identification, quantification and mitigation of risks. On this occasion, a panel discussion, moderated by Prof Sankarshan Basu from IIM Bangalore, deep dived into evolving challenges and opportunities from digitalization. The speakers comprised Narendra Patra, Chief Risk Officer, SBM Bank India, Jason Wynne, Group Vice President, Modern Risk and Finance Product Development, Oracle Financial Services and Rajaram Manian B, Chief Risk Officer, Adani Capital

Dr Nirakar Pradhan, CEO of PRMIA India, highlighted PRMIA India's transformative journey in promoting learning and development, competence-training, global certification and employment opportunities for students and professionals. RBI, Government of India, State Bank of India, other leading banks and corporates have adopted PRM Certification as a part of employees' learning and development.

Ramesh Kanamarlapudi, PRMIA Regional Director, welcomed all the guests and thanked volunteers for the excellent work. He also thanked participants for their overwhelming interest and assured them to organize such events at regular intervals. Tanwi Kumari, Steering Committee member, extended vote of thanks.