Karnataka Bank, which has embarked on a business transformation project with the Boston Consulting Group (India), sees potential in partnering with financial technology (fintech) companies and start-ups as one of the intervention areas for transformation.

Speaking to BusinessLine here, Mahabaleshwara MS, Managing Director and Chief Executive Officer of Karnataka Bank, said fintech firms are likely to deepen their presence in the Indian financial markets in the next few years with their innovative and technological skills. In such a situation, it makes business sense to collaborate with them.

He said that the changing landscape in the financial and technological fronts has necessitated reorienting the strategy for banks.

Referring to the spurt in the use of digital channels in the banking industry, he said customers are eager to adopt digital channels when user-friendly solutions are provided to them. He quoted mobile-based payment solutions Unified Payments Interface (UPI) and Aadhaar-based payment solutions as cases in point.

In such a situation, a lot of infrastructure-related changes have to happen. He said it is not just banks but all the entities concerned — including government, fintech companies and start-ups — that will play a major role in this.

“I believe that fintech companies and start-ups bring innovative ideas and solutions that are forward looking and hence, it is evident that partnering with them will certainly add value to the transformation journey.

“That is where I am optimistic about tying up with fintech companies and start-ups. Because they have the solutions and I have the infrastructure. It is definitely a win-win situation for both,” he said.

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