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IT Revolutionising BANKING INDUSTRY

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K R C Murty
Vice President
Deutsche Bank

Technology in banking is evolving at a rapid pace and providing convenient banking to clients. There is a fierce competition in providing banking services on an omni channel, mobile-based technology, biometric, video banking and many more, says Vice President – Chief Technology Office at Deutsche Bank Ag, K R C Murty in an interaction with Arpit Gupta of Elets News Network (ENN)

IT, today is a quintessential aspect adopted in almost every field of operation, needless to say, banking adopted it to the highest concern. How long do you see it will be a game-changer in BFSI sector?
In today’s world, technology is a necessity and a vehicle for organisations to ride on for survival and increased reach and profitability. There will be no end to the extent of which technology will be used. There will be newer channels explored at all times and advanced technologies deployed in a competitive spirit to be able to reach out to as many end users and make it simple to use. The patience levels of consumers are shrinking and with a touch of a button or even with biometric use transactions are expected to take place. Whilst security is of immense importance and no room is left for any leakage, technology will be top most priority in BFSI. There will be many technological advancements brought in for ease of transacting and reducing the Turn Around Time (TAT) to seconds or even nano-seconds. The competition to use technology will be aggressive. It is surely going to be a big game changer.

IT_RevolutionisingWill investments in newer technologies such as mobility, virtualisation,  dev OPS and security change the scenario of Indian banking industry?
Investments in newer technologies such as mobility, virtualisation, dev OPS and security will not be an option but a mandate. Banking sector is transforming rapidly and with the technology taking the driver seat, it is inevitable to invest and not to ignore any spend in this space. Technology in banking is enhancing by leaps and bounds and providing convenience banking to its clients. There is a fierce competition in providing banking services on an Omnichannel, Mobile-based technology, Biometric, Video Banking and many more. BFSI will see ways to reduce Capital Expenditure (CAPEX) and move to Operation Expenditure (OPEX) based models and to reduce the overheads of managing the infrastructure and services. Outsourcing on non-core services will be on the rise to the SME’s and who can manage the environment for the respective technology teams without spending their core teams’ efforts on such operations. Technology will also help in reducing manual processes and human errors and create space for niche offerings if deployed in a well-planned and structured manner. IT strategy will make a difference for the banks if planned properly.

New payment banks are embracing cutting edge technologies to remain in the competition. Do you see stiff competition among small finance banks and payments banks, PSU and private banks?
Certainly yes; new payments banks are embracing latest technologies and pushing the legacy giants to expedite and move to the new platforms and offer similar services if not over and better. It is imperative that legacy giants have to relook at their digital initiatives and be able to move on shoulder to shoulder and to sustain. However, I personally do not see payment banks as a threat to the business models of giant banks. PSU’s and private banks are too big in nature, experience, business models and the trust on which they sustain. This cannot be discounted and in no way can the new payment banks take head-on collision with them. Payment Banks are for payments and banks are for investments and payments, having their way in this business.

Investments in newer technologies such as mobility, virtualisation and dev OPS will not be an option but a mandate. I do not see payment banks as a threat to banks

Mobile and internet banking are two important components of the banking sector, having their own risks at the same time. What measures do you have to counter them to enhance banking security for customers?
Mobile banking and internet banking technologies have been there since few years now. However, the offerings have gone up and use of these channels by customers have sky rocketed with almost everyone now becoming tech-savvy. Visit to branches and interacting physically is a thing of past. Security is of course a very important and top most factor in this scenario and various measures and security standards are implemented to combat any kind of earlier known and to safeguard on new age breaches. There are several solutions available to safeguard and proactively monitor for possible hacks or breaches and regular monitoring and knowledge of new age threats is of utmost importance.

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