Technology bringing disruption in financial services sector
I hope it happens with level playing field. Similarly, the regulatory reporting that banks need to have (to RBI) I think these needs to be stretched to these players (as well). I think as we move ahead, in the next 6-12-18 months, we need to sort these out as players - K V Kamath, Veteran Banker
Technology bringing disruption in financial services sector
Receptive To Change
- Digital activity accounts for 40% of Chinese economy
- Whereas in India, it's a mere 5%
- Expected to reach 40% in next 2 yrs
- Indians attained digital mindset at all levels
New Delhi: Veteran banker KV Kamath on Wednesday exhorted the banking industry to pitch for a level-playing field with technology-driven new age players, saying that the rise of technology has led to disruption in the financial services sector.
He said that bankers should make a case with the regulator for a level-playing field and the requirement of regulatory reporting should be extended to new age players. "We now have a digital mindset at all levels, there is the rise of technology and the bank customers are now receptive to change. New players who are coming up and grabbing and leveraging the opportunity in the banking and financial space." "As long as you are ring-fenced and protected by the regulator, you have the space to breathe ... now you need to see that you have the level playing field with these new players. It appears from a banker's point of view that the playing field is not level." "I think it is up to us bankers to make the case with the regulator what is required there to make the level playing field," Kamath said while delivering the inaugural address at the 'FICCI-FIBAC 2021' virtual event on Tuesday.
Kamath, who has been appointed as chairman of National Bank for Financing Infrastructure and Development (NaBFID), noted that the disruption caused by these new players in the financial space was bound to happen. "I hope it happens with level playing field. Similarly, the regulatory reporting that banks need to have (to RBI) ... I think these needs to be stretched to these players (as well). I think as we move ahead, in the next 6-12-18 months, we need to sort these out as players," he added.
Kamath recognised the great transition done by the banks over the last two years during the pandemic, however, the only issue is about how to compete.
