The traditional banking system is being disrupted by fintech companies, and collaborating with the fintech ecosystem will be the way forward for existing banks, noted Ravindra Pandey, deputy managing director and chief information officer of State Bank of India (SBI).
Mr Pandey was speaking at the IEM Economic Summit 2022, jointly organised by Indian Economy and Market in association with IT, Industries and Commerce department of Telangana.
He said that the traditional banking system is now being challenged by new players in the evolving fintech market. This evolution is in fintech payment and remittance, process improvement and customer engagement. The fintech sector began with payment and remittance technology and has gradually moved to customer engagement as well.
“The traditional banking system is now being disrupted by fintech companies. Collaborating with fintech ecosystem will be the way ahead for the existing banks that have been in the banking space for a long time. At this point of time, SBI App Yono has 4.83 lakh registered users and we are doing an average of one crore transactions per day,” he said.
IT Principal Secretary Jayesh Ranjan said the State is doing very well in terms of GDP, revenue generation and employment opportunities. “We were able to attract USD 35 billion in eight years. There have been repeat investments in the State by many companies,” he said.
Speaking at the event, SBI ex-chairman Rajnish Kumar, who is the director of Bharat pe, said, “Regarding fintech, I would say we are the third largest country in this domain. The smartphone penetration and lower data packages have significantly contributed to this fintech boom in our country. Fintech is providing jobs to many people. I see collaboration and convergence between banks and fintech companies in the near future.”
Ajay Kumar Agarwal, chairman of the board, Indian Economy and Market, and author of ‘PR: A Tool For Success’, emphasised the importance of public relations and relationships. He said that interaction with people is paramount.