Digital Banking: Time to Move Aggressively
I have spent almost two decades in Digital Banking across all sides, including business, software products, and consulting. Based on my experience across geographies, I believe that we are entering the golden period of Digital Banking post-COVID. With the help of the digital ecosystem in the country, banks can move faster in their digital journeys across consumers, SMEs, and corporate businesses.
To make this happen, there is an urgent need to build Digital Strategy, which would need to be aligned with Business Strategy. There are massive opportunities in the following areas, which will change the Cost-Income Ratio of Banks by 10% in the next 24 months:
– Consumer Business:
o Launch independent Digital bank
o Partner with Neobanks through Own Secure API Platform
o Scale-up current Digital Platforms like Mobile, Internet Banking with new services, automation, and simplified customer onboarding
o Launch powerful Omnichannel Platform
– SME Business
o No bank in India has ever launched an SME Neobank despite the need. I believe that this year at least a couple of banks will initiate this.
o Partner with SME Neobanks through own API Platform
o Launch Digital Platforms focused on SMEs. Currently, SMEs are poorly handled through either Consumer or Corporate Platforms
– Corporate Business
o Enhancing Digital Capabilities for Corporates
o Simplifying and automating Trade Finance, Treasury business
o Co-creating APIs specifically for corporate consumptions