Private lender Karnataka Bank that has stepped into a business transformative project with the Boston Consulting Group (India) sees prospective potential in joining hands with financial technology (fintech) companies and startups for bringing transformation in terms of intervention.
“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,” said Mahabaleshwara MS, Managing Director and Chief Executive Officer, Karnataka Bank.
“The changing landscape in the financial and technological fronts has necessitated reorienting the strategy for banks,” he said.
Referring to the recent rise in the usage of digital channels in the Indian banking sector, he said that the customers are keen to use digital channels if provided with the user-friendly solutions.
Citing the mobile-based payment solutions, he referred to the Unified Payments Interface (UPI) and Aadhaar-based payment solutions are examples as cases in point.
For boosting the level of e-payments there is a need to perk up the infrastructures. Not just the banks but all the entities concerned including government, fintech companies and start-ups, will play a crucial role in this regard.
“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.