Banking Disruptive Technologies & Transformations

Nexensus puts together a list of banking disruptive Technologies & Trends within the industry that are significantly transforming the way Banks function in India. Interestingly, over the last few years the industry has seen a host of new roles within the banking sector given that technology from being a mere enabler is now seen to be driving Top Line. Technology has crept into all verticals of the Banking system from Client Acquisition, Due Diligence, Recovery, Risk Assessment and transactions.

The thrust on technology is evident as banks race to capture market share and penetrate regions beyond the urban.

New roles withing the Banking Sector

  • CTO
  • CIO
  • Head Innovation
  • Fin-Tech & Partnerships
  • Head – Mobile Banking
  • Head – Digital banking
  • Robotics
  • Payments Expert
  • Data scientists
  • Data translators
  • Integrations

Disruptive Technologies & Transformations

New TechnologyTechnology Applications Examples
Chatbot – AI (Artificial Intelligence)Computer program designed to mimic conversation with human users on the internet, Using Robotics and AI, Chatbot can assist customers without the need for a customer service agent on the other end.Axis Bank has launched a virtual assistant for customers armed with proprietary artificial intelligence and machine learning algorithms and named it Axis Aha. HDFC launches EVA - AI bots in addressing day-to-day queries from our customers. 
GPS SystemDigitising field reporting with real-time GPS tracking of field staff.Microsoft Kaizala app used by Yes Bank
FIn-TechOnline Loan Origination, eligibility checks, online data capturing – example Banks are tying up with platforms like Loan Frame, SME Lending.com, Capital Float etcAxis Bank launches ‘Thought Factory’, an Innovation Lab to drive FinTech innovation.
Card less PaymentsDigital Apps are replacing cards; apps can be linked with Contactless Merchant Terminals for payments. Axis Bank – Tap & Pay
Digital banking platformIntegrated digital banking platform to enable users to access a variety of financial and other services such as taxi bookings, online shopping, or medical bill paymentsYONO by SBI
Payment Terminal – contactless merchant terminalsPayments machine to facilitate transactions from cards to QR code based payments.Example SBI Mopad - MOPAD, or Multi Option Payment Acceptance Device, is a Point of Sale (PoS) terminal that would along with cards accept payments through UPI, Bharat QR, and SBI Buddy wallet
Robotic process automation (RPA)RPA is use of software robots (or similar virtual assistants) which are programmed to complete repetitive and labour-intensive tasks. This makes them ideal for numerous applications in banking.HDFC Bank has launched Interactive Robotic Assistant (IRA) 2.0, an interactive humanoid at its Koramangala Branch in Bengaluru.
Blockchain and Distributed Ledger Technology (DLT)In International Clearing / Cross border payments block chains would immediately save time and money in terms of fees. Blockchain does not require third-party authorization, thus significantly speeding up the cross-border payment process. Axis Bank - Ripple-enabled payments
Data Analytics & Cloud ComputingBanking analytics, or applications of data mining in banking, can help improve how banks segment, target, acquire and retain customers, Additionally, improvements to risk management, customer understanding, risk and fraud enable banks to maintain and grow a more profitable customer baseEWS – Early Warning Implementations prescribed under RBI
UPIUnited Payments Interface (UPI) is an instant real-time payment system developed by National Payments Corporation of India facilitating inter-bank transactions. Users can transfer funds between two bank accounts on a mobile platform.BHIM (Bharat Interface for Money) is a mobile payment App based on the UPI.
Forensic Intelligence and AuditingIn forensic audit/investigation, auditors focus on transactions in a specific area deemed susceptible to fraud or an area that was explicitly identified in the tip received. Use of AI in forensic auditing to identify unusual patterns and high-risk transactions for Auditor to review. Digital Forensics
Legal, Risk & RecoveryGrowing NPA’s has called for increase in vigilance. With the new policies in place including - Insolvency and Bankruptcy Code (IBC), Central Repository of Information on Large Credits (CRILC), National company Law Tribunal (NCLT) and push from RBI with central repositories - Central Repository of Information on Large Credits (CRILC). Risk monitoring and assessment techniques, Detection to prevent and avoid potential slippages Mandatory Implementation of EWS Systems by RBI
Asset light business modelsMulti-Channel presence - Electronic Channels are accounting for a greater share of Bank’s transactions to cater to the tech savvy young Indian; the lower income financially excluded Indian, and to the financially included, although digitally, non-savvy customer.SBI Realty Website. This website showcases your Bank’s approved projects across India to prospective home buyers. It helps to bring together developers and buyers on a single platform, giving buyers access to the deals on SBI approved projects.
Cyber SecurityBanking industry in India is rapidly evolving facilitated by mobile and internet penetration in the country and technological innovations disrupting the established processes.

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