Page 38 - CII Artha Magazine

changing times. To meet the intensify further in the incumbent financial provide cutting edge & journey, banks must align themselves Implementing digital technologies transparent and more inclusive
demands of increasingly digital coming few years and banks institutions. As the lines innovative digital banking towards building products and will not only help banks drive cross-border payment services
and mobile customers, banks will have to take bolder steps between technology and solutions to all our services to ensure that internal operational efficiencies internally would deliver widespread benefits
are transitioning from to establish a formidable business are becoming blur, customers. YONO, our processes are optimized and are and externally, accelerate for citizens and economies
“transactional” to position in the market. banks have realized the flagship mobile banking and aligned to sustainability goals. From innovation, reduce costs, retain worldwide, supporting economic
“interactive” banking that importance of technology lifestyle app, launched in 2017, a long-term perspective, financial and grow customers, but will growth.
offer real-time advice and innovation and are leveraging has been very well received institutions should aim at building a also lead to more sustainable
greater convenience. Key Technology it to build novel products and by our customers and the sustainable ecosystem covering both outcomes as a business. This is UPI is in a prime position to be
influential technologies that services for their customers. scale of impact can be gauged external stakeholders i.e customers what makes sustainable banking a leveraged for enhancing
are shaping the industrial Technology based innovations It is a win-win proposition for from the fact that YONO has and investor’s as well as internal ‘win-win’ for the banking and cross-border payments services. The
financial services sector.
competitiveness are are redefining industries and both banks and Fintechs to a cumulative registered user processes i.e. building products, impact of UPI on cross-border
Conversational AI as a changing the way businesses collaborate and work much base of 60 million plus users services, and internal operations. In medium-to- long term, sustainable payments is expected to be
service, Artificial Intelligence function. Digitalization and more closely to bring (as on 31.03.2023) and has banking has the power to open up a significant and similar to the impact
(AI), Robotic Process innovative digital technologies together forces and value for helped to improve the Three trends driving the need for range of benefits, from reducing of UPI on the domestic payments
Automation (RPA), Internet of are creating unprecedented customers. productivity of the Bank Sustainability in the Banking costs, increasing operational ecosystem. The recent linkage of
Things (IoT), Blockchain disruption in the banking through end-to-end Industry: efficiencies, being more UPI (India) – PayNow (Singapore)
technology and Open Banking sector, and the rate of change New age technologies such as digitization. We have started environmentally friendly and cross-border real-time payment
APIs in addition to Cloud. Artificial Intelligence (AI) and working on the next 1. Climate Change: The effects system is just one of the initiatives
is accelerating. In today’s Machine Learning (ML) are generation of YONO, which of climate change are becoming retaining existing customers while in this direction to offer cheaper,
scenario, differentiated and more frequent and serious. growing new ones to make business
In this digital era, in order to delightful customer radically shifting the way envisages to be a total operations greener. In order to take faster, and safer cross-border retail
sustain competitive edge and experience has become more banks are working today. With revamp of YONO not only in Customers are expecting banks advantage of these benefits, banks payments and remittances for both
leadership position, important than just providing powerful AI tools, banks are terms of features and to embrace environmental and financial institutions of all shapes businesses and individuals, directly
characteristics such as basic financial services. The able to make informed functionality, but also in terms commitments to mitigate the and sizes must incorporate between bank accounts or e-wallets.
impacts of climate change. Banks
providing a wide range of traditional banking model is decisions faster by using of ease of use and customer have a responsibility to reduce Environmental, Social and Corporate The facility is expected to benefit
services to customers, being reimagined as predictive analysis, improve experience. The focus of the both their direct and indirect Governance (ESG) into their the Indian diaspora to carry out
Competitiveness The competition is just not fulfilling and exceeding clients' innovations in technology customer service next generation of YONO carbon footprint. Direct business strategies holistically and quick and cost-efficient money
between private and public
sector banks but also with expectations and providing a continue to redefine what it tremendously and also offer shall be on customer-centric emissions relate to a bank's make sure that sustainability is transactions. Banks in India are
modern and intuitive mobile
collaborating and partnering for
design, Hyper- personalized
tailor-made solutions to
he process of banking other FinTechs, InsurTechs, experience to users are means to be a financial customers. The introduction experience, innovative internal operations, staff and prioritised across all areas of the faster payment rails like Unified
digitalization has become and BigTech firms who are crucial. Clearly, banks that are institution and Banks have of Chatbots are helping banks product offerings, offices. Indirect emissions from bank, both internally and externally. Payments Interface (UPI) in the
an integral part of the expanding their financial investing in customer been increasingly leveraging to reduce time and effort of modernization of tech stack, banking activities include funding cross-border payment ecosystem,
(through loans) businesses that
strategic plans and decisions services offerings, leveraging experience are seeing a larger technology to provide a human capital and provide and leveraging AI/ML, Cloud actively contribute to the climate which has a potential to significantly
for majority of banks. There new technologies, and are wallet share, higher rates of better customer experience. quick and consistent service and Data Analytics for digital crisis. Internationalization increase the accessibility of
has been an accelerated gaining market share in-line recommendations and are and at the same time save transformation in order to cross-border payments, reduce
progress in digital with emerging business more likely to up-sell or Today, digitalization & digital huge operational costs. benchmark YONO with the 2. Reputation: Consumer Globalization has increased costs and simplify the entire
technologies, which inevitably models. Banks are also trying cross-sell products and innovations have become a Further, a number of industry best of Global/ Indian digital demands are a major driver for international trade and allows cross-border person-to-person
led to an increase in to reorient themselves by services to existing strategic priority for the level technological & other banking propositions. more sustainable banking companies to connect stronger with (P2P) payment process.
competition in the field of setting up large innovation customers. banking industry. There is a critical industry changes like operations. The next generation consumers and partners across the
financial services. All banks departments, new fintech deep realisation among banks emergence of FinTechs and of consumers is also demanding globe. As a result, the world has Another innovation that is driving
are striving to adopt new strategies and a change in Banks that can design their that the scale and adoption of Neo Banks, Seamless Sustainability that banks place greater witnessed more competition and internationalization is usage of Block
technologies as soon as culture to adapt to the operations, processes and digital transformation needs Onboarding based on Video emphasis on going green. Banks companies look for new chains in payments. With blockchain,
possible and to introduce strategies with clarity in the to take a quantum jump to KYC, Digital Lending, with weak sustainable targets opportunities outside its own payments are set to be low-cost,
new digital products. By now, direction, speed and agility of keep pace with the new AI/Machine Learning, The banking industry in India risk facing public criticism. borders to stay competitive. Banking secure and processed quickly, overall
it is imperative that banks execution, while keeping technology paradigm. Banks Analytics, Big Data, Blockchain has a positive influence on the industry is also experiencing high facilitating money transfer regardless
that are focusing on digital customer at the centre, can that have digital frameworks and Cloud will continue to be country’s socio-economic 3. Technological competition due to digital of the distance between the sender
advancements: Growth in
functionalities have a greater capitalize on the current shifts in place and are part of wider the biggest transformational progress and development innovative technologies is a technologies. and receiver. Distributed Ledger
chance of increasing revenues in the market and have a clear digital ecosystems have a enablers that will encourage and have an important role to golden opportunity for banks to Technology (DLT) and blockchain
and achieve reduction of competitive advantage over clear competitive advantage banks to not only achieve play in leading the financial build on sustainable digitisation. With global economies becoming have developed considerably in
costs. with continued agility, services ecosystem towards
other players in the market. innovation, and digital core technological sustainability. Sustainable Banks should leverage digital increasingly connected, there is features and complexity to offer
Modernization of technology transformation. transformations but also banking is a win-win for both technologies to drive sustainable growing demand for a fast, secure seamless payment solutions
at banks is also no seamlessly reinvent the user financial institutions as well as outcomes. Some of the initiatives and efficient cross-border payments (including Cross border payments)
longer wishful thinking but is BigTechs / FinTechs have experience. the industries and the to drive such change includes system. The cost and speed of to both retail and corporate
taking place rapidly across the emerged as successful players economy. For a successful intelligent automation, delivery strongly influence the customers.
industry. The competition in and are now competing with In SBI, it has been our sustainability transformation digitisation of paper processes customer’s final selection of
banking is expected to continuous endeavour to and machine learning. payment mode. Faster, cheaper, more

38 ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY 39
QUARTERLY JOURNAL OF ECONOMICS
QUARTERLY JOURNAL OF ECONOMICS
SEPTEMBER 2023 SEPTEMBER 2023