Pull up socks or face irrelevance: RBI’s R Gandhi to banks
18/08/2016 15:11
Delivering the valedictory address at the two-day annual FICCI-IBA Conference, FIBAC 2016, Gandhi urged banks to pull up their socks and address the emerging trends in the banking sector which were being dictated by technology, regulation and customers.
He said technology and customer expectation have chunked away banking functions from banks. This was because banks no longer do banking exclusively, non-banking institutions and fintech companies were getting into their domain strongly. This does not bode well as it had all the potential to de-grow banks and ultimately decimate them, he cautioned.
Gandhi said the millennials crave for instant gratification and have a ‘non loyalty’ approach. The banking industry would therefore have to change the way it conducts business to cater to the needs of Gen X.
He said the solutions offered by fintech companies were effective and therefore they possess a disruptive power that banks would have to contend with.
The Deputy Governor’s mantra was to “make yourselves socially relevant” to avert the onslaught of technology, regulation and customer preferences.
