Key areas, where banks have missed the business by underplaying technology are:
Automation: Technology was available for more than a decade to automate 90 percent (if not more) of operations / credit / sales management / compliance etc. However, only operations area came under automation largely as “it was a weak link and always considered as cost centre”.
Due to their relatively powerful position, credit / sales / marketing / compliance kept their distance from technology. As we all know, when automation takes over, there is higher transparency (removes discretion), lower costs (linked to lower human resources needs), lower TAT (increases accountability) and higher customer satisfaction (does it matter?).
By avoiding automation, they kept their growth linear. Higher sales require increase in team size, Higher loan logins require bigger credit team, increase in regulation required more compliance folks. This ensured that in the power equation, they remained ever powerful.
Fintechs have used this void to enter and create disruption. They have largely focused on automating sales, credit, compliance and ops. Now, everyone is relooking at automation.
More in next set of blogs UPI / IMPS / QR Code / AI & ML