Fintech re-writing the history of financial, banking sectors: Experts

Fintech is one of the emerging disruptive technologies rocking the banking and financial sectors, and even though it opens up many doors of opportunity, the challenges are also substantial, though not insurmountable.

Experts said this during a panel discussion on fintech here on Tuesday which was organised as part of the Vizag Fintech Festival.

R Chandrasekhar, currently with YES Bank and former Chairman of Nasscom, said emerging technologies - blockchain, artificial intelligence and bit data analytics - were all extremely disruptive . "On the whole, fintech is re-writing the history of the financial sector. We are passing through exciting, transitional times. However, cyber security issues are critical," he said.

He said: "Both the flow of data and flow of money are equally critical and both should be managed efficiently by employing fintech to pave the way for customisation of services."

Smita Bhagat of HDFC Bank said she did not view fintech as a threat though it was bringing about many disruptive changes in the sector. "I do not view it as a threat, but an opportunity. Eighty per cent of HDFC Bank's transactions are on a digital platform. We are even into digital lending. We are offering loans in 10 seconds," she said.

R S Sharma, Chairman of the Telecom Regulatory Authority of India (TRAI), said: "Three Cs are critical in making use of any new technology - cost, convenience, and confidence. We have 450 million internet users in the country. However, connectivity is still an issue. Many do not have access to internet."

On the issue of aadhaar linkage, speakers said though the recent Supreme Court judgment had made it clear that aadhaar linkage is not mandatory for opening a bank account or for banking purposes, banks may be allowed to make use of it, if the customer is willing to do so.

Chandrasekhar said that while he concurred with the view of the Supreme Court that aadhaar linkage should not be made mandatory for opening a bank account, "We should however avoid taking extreme positions on the issue."

Gopal Singh Gosain of Union Bank of India and Smita Bhagatsaid using the aadhaar platform would make it easier for the banks to establish the credentials of the customers and "though it is not mandatory, if the customer is willing and if is beneficial to him or her, it may be used".

Santanu Paul of Talent Sprint, moderated the debate.

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