: Banks need to take advantage of digital era and become more techenabled to compete with fintech companies: Exfinance Secretary SC Garg #FinanceIndia #StockMarketNEWS Banks need to take advantage of

@StockMarketNEWS Mon 03 May, 2021

Posted in: #FinanceIndia #StockMarketNEWS

Banks need to take advantage of digital era and become more techenabled to compete with fintech companies: Exfinance Secretary SC Garg #FinanceIndia #StockMarketNEWS
Banks need to take advantage of digital era and become more tech-enabled to compete with fintech companies: Ex-finance Secretary SC Garg New Delhi, Apr 30 (KNN) There is a greater need for Indian banking sector to become technology enabled and develop tools like Application Programming Interface (APIs) to compete with fintech companies in the credit business, said former finance secretary, S C Garg.

In his inaugural address in an ASSOCHAM National E-Summit & Awards – Banking and Financial Lending Companies, Garg ascertained that banking in the digital era will have to fintechalise and public sector banks need to be generally readying themselves for the new age banking as it would improve performance and strengthen their finances.

Garg also said that banks need to be able to match efficiency and service of the fintech companies in the retail loans as well.

Meanwhile, speaking on the occasion, Ajit Pai, Distinguished Expert and Consultant, Vice Chairman, Niti Aayog said that credit growth in India during the past seven years has decelerated, whereas for India to grow to a USD 5 trillion economy, our credit growth must be substantially greater.

“There is a need to see how to increase the number of people that are creditworthy in India as quickly as possible with three years of economy formalising i. e. , three years of GST data,” Pai said.

Noting the need to accelerate overall credit, he said that the government has taken steps in many ways.

“We want private credit to be growing faster, we have laid the foundations with JAM (Jan Dhan-Aadhaar-Mobile) Trinity, GST and shift to GDP. ”

In his address, Sunil Mehta, CEO, Indian Banks’ Association (IBA) talked about the challenges being faced by the banking industry in adopting digital technologies together with need for greater investment in cybersecurity and the sector’s response to the clarion call given by Prime Minister for making an Aatmanirbhar Bharat.

He said that the banking sector will have to make greater investments in information technology, creating infrastructure, utilising new technologies like cloud storage so that it becomes more cost-effective, machine learning, blockchain technologies which facilitate adoption of new generation digital products.

“The entire banking system will have to find ways to deal with challenges related to technology by redesigning their existing business model,” said Mehta.

Impressing upon the need for investment in cybersecurity, he said that long term success of digital transactions will depend upon security being offered to users and that can be done by being vigilant about such threats that are rising manifold by the day.