DailyPost 761


Think of a few years back and try to remember the experience you had with the banks. It has totally transformed over the years. How many of us have visited the banks in last couple of years. There are millennials who have never visited a bank might be but for opening of the bank account. The bank for them has finally converged in the mobile. Only 34 fintech start ups together have done more business than Barclays.

The millennials are a different lot. They have grown up with technology and wedded to a futuristic banking /purchase / payment / user experience which suits their dynamic real time on the move solutions profile. Very shortly they would be the main customer base. They don’t compromise, they just move out to better options and there are lots in the market today. They banks no more can dictate the customers, they have to be dictated by customers. This happens to be the first lesson of banking transformation.

Banking has changed at the front end level. At the level of one to one local t transcations. Reconciliation and the time taken for it still remains a major challenge. The processes in the back end has not changed and so have the data structures. They are hard coded, monolith, not suited for today. Added to the commissions / charges; the world now is not ready for regular banking transactions. The banks have a challenge to generate value out of funds and one is ready to pay a small share out of that additional value.

Banking transformation is humungous from where is started, impressive from last generations point of view. The challengers of the day belong to a different breed; from block chain technology crypto currencies, from the Paypals to the the GooglePay, the churning in the financial transactions / retail / payments convergence is difficult to fathom out. For banks it is difficult to decide to take on the new contenders or find out different models of collaboration. Only time will tell.


Sanjay Sahay

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