Digitisation and innovative technologies are creating unprecedented disruption in the banking sector, and lenders have to be agile to fulfill the rising expectations of shoppers, State Bank of India‘s Chairman Dinesh Khara mentioned on Friday. Banks have adopted the digital revolution, which has lowered their price and widened the realm of providers they provide, he added.

“Digital innovation is redefining industries and changing the way businesses function. Digitisation and innovative technologies are creating unprecedented disruption in the banking sector and the rate of change is accelerating,” Khara mentioned at a Dun & Bradstreet occasion. [1]

Figure 1. Digitisation, innovative technologies creating unprecedented disruption in banking sector: SBI chairman Dinesh Khara

Figure 1 shows today, digitization and digital innovations have become a strategic priority for the banking industry, he noted.

“Banks need to be agile and nimble as technology increases customer expectation and the regulatory landscape also evolves rapidly to keep pace with technological advancement,” he said.

According to Khara, there is a realization among banks that the scale and adoption of digital transformation are to keep pace with the rapidly changing ecosystem. To achieve the digital transformation goal, banks and financial institutions need to have a clear vision of what they intend to achieve with technology, he added.

Swift absorption and adoption of new technology and innovation, and quality of infrastructure are crucial elements that play a significant role in building confidence in the digital lending system, he said. [2]

Going forward, banks of all sizes and across regions will make a huge difference by enabling digital initiatives to maintain a competitive edge and deliver a maximum value to customers, he noted.

During a panel discussion at the event, Indian Banks' Association (IBA) Chief Executive Sunil Mehta said the payment space has been digitalised and now it is time for digitisation of lending space.[3]

During the pandemic, everybody has realised the importance of alternate delivery channels for banking services, he said.

While addressing the event, International Finance Corporation (IFC) Country head (India) Wendy Werner said India is quickly evolving as a digital-enabled economy.

The country has the highest fintech adoption rate in the world and much of this is coming from tier 2 and tier 3 cities, she said. [4]

References:

1. https://www.pehalnews.in/digitisation-innovative-technologies-creating-unprecedented-disruption-in-banking-sector-sbi-chairman-dinesh-khara/1748730/
2. https://www.5paisa.com/newsfeed/sbi-chairman-dinesh-khara-says-digitisation-innovative-technologies-creating-unprecedented-disruption-in-banking-sector/MTU3MzE=
3. https://www.freepressjournal.in/business/digitisation-innovative-technologies-create-unprecedented-disruption-in-banking-sector-sbi-khara
4. https://www.moneycontrol.com/news/business/digitisation-innovative-technologies-creating-unprecedented-disruption-in-banking-sector-sbi-dinesh-khara-8222261.html

Cite this article:

Thanusri swetha J (2022), Digitisation, innovative technologies creating unprecedented disruption in banking sector: SBI chairman Dinesh Khara, Anatechmaz, pp. 171