Key areas, where banks have missed the business by underplaying technology are:
APIs have been in existence for a long time in banking industry. While specific technology may have changed, but APIs were used for a long time for ATM transactions, SWIFT, Payment Gateways, CIBIL, Bill Payments etc. New innovations like IMPS, UPI are simply secure API platforms for payments.
Even now, any discussion with board or management on APIs would have a debilitating impact on the CIO. I have a heard about a large private bank, which could not setup API platform as “the business head could not understand the business case around APIs”.
Fintechs have taken leadership position by optimally using Indiastack APIs, Payment APIs, Credit APIs, Reg Tech APIs, AI APIs…. As we look around every part of the business is getting converted into an API. Google offers cloud vision APIs!
Its time to rebaseline technology in banks. In year 2015, BBVA chairman Francisco González had mapped out a new future for his organisation, not as a bank, but as a software company. Citibank, JPMorgan Chase, DBS are moving ahead by becoming tech / digital. Is your organisation ready at Top Management level to handle technology?