KOCHI: Privacy and security will be the overriding concerns when the banking sector undergoes changes in accordance with technological advancements, and technologies for ensuring this should indeed be developed, according to the experts who addressed the session on ‘ The Digital Future of Banking, Finance and Retail’ at the #Future global digital Summit here.
“The concept of bank branches is changing and branches may even disappear in the future. Banking, however, will exist in its new form, but branches may disappear, as physical existence of the branch may not be required,” said Shyam Srinivasan, Federal Bank managing director and CEO.
According to Harvard economist Gita Gopinath, technology will not lead to job loss. Instead, the manner in which jobs are done will change. She felt the people should be educated on ways to adapt to the changes ushered in by technology. She cited the instance of ATMs to substantiate this. “With the arrival of ATMs, the cost of running a branch came down. Automation has its positive side too,” said Gita, who is also the CM’s adviser.
Gayathri Parthasarathy, head of financial services, KPMG India, said automation will generate new job opportunities, but the skill sets required may vary from existing ones. Service will have to be offered in an innovative way,’’ she said.
According to B G Srinivas, group managing director and executive director of PCCW, consumers having a mobile phone with fast connectivity and access to online platforms will call the shots in the future. He said the concept of bank branch should change. “Why can’t banks think of opening a branch at a coffeehouse where the youth spent hours?’’ he asked.
Rajesh Rege, Redhat India head, said, “Industry after industry is facing challenges because of the emergence of new technology.”
“Cyber security and data security will be a major concern. Proving how security threat is managed will be important with regard to banking sector,” he said.
On the issue of cyber security, Rajesh Nair, member of the High Power IT Committee, said though blockchain had brought in innovation, it is not yet time to say blockchain is the answer for all issues.
I don’t have time for Twitter: Raghuram Rajan
Kochi: Ever wondered why former RBI Governor Raghuram Rajan is not on Twitter. “I don’t have the ability to think quickly and respond in 30 seconds with 140 characters,” Rajan quipped, in an interaction with reporters at #Future, the global digital conclave, in Kochi. On a more serious note, Rajan said he doesn’t have the time, especially to engage constantly with his ‘followers’. “I don’t have time. My sense is that in many of these things, once you start engaging, you have to be consistent and I certainly can’t since I don’t have the ability to think quickly and respond in 20-30 seconds in 140 characters,” he said.
‘Govt should do more for start-ups’
Kochi: Raghuram Rajan said that another aspect of the fear is where the incomes will come from, the answer for which is an assured Universal Basic Income. In the Indian context, he said, “We have a huge hunger for capabilities at every level. If we can create incomes at some level, the aspirations of people will ensure that their children move up in life and get the opportunities they did not get.”
In terms of business opportunities, he said the government needs to do far more for start-ups to flourish in India by creating easy paths to incorporation and funding. Another significant area where India effectively needs a revolution is education and skill building, he said. “We need to remedy weaknesses in education at every stage, build more world-class institutions domestically and bring the talent back from abroad.”