June 02, 2025
On April 30th, Cedar-IBSi FinTech Lab hosted a round table discussion in the Mumbai Lab, focusing on the future of banking and how to navigate the next wave of transformation. The event, led by V Ramkumar, Senior Partner at Cedar Management Consulting, brought together key industry leaders for a dynamic discussion on the evolving role of FinTech in banking, with a sharp focus on customer experience, regulatory compliance, and future-ready strategies.
Some key Insights and takeaways from this session were:
- Banks and FinTechs should play to their strengths: The evolving relationship between traditional banks and FinTech companies. Key emphasis was put on FinTechs bringing agility and innovation, and they should not be seen as competitors to banks. Instead, FinTechs should collaborate with banks to enhance customer experience and streamline processes. The guests stressed that banks have a broader role, including regulatory compliance, customer trust, and data security, which FinTechs must respect and adhere to.
- FinTechs should fill the gaps in Digital Transformation: The session further delved into improving customer experience through digital transformation. Industry case studies on various banks’ initiatives, such as creating customised mobile apps for different customer segments, including minors, students, and senior citizens, were discussed. These apps are designed to educate and engage customers, making banking more accessible and user-friendly. The banks are also focusing on using geospatial analysis to identify potential customers and tailor services to their needs.
- The Importance of Regulatory Compliance: The panellists agreed that regulatory compliance is crucial for maintaining trust and stability in the banking sector. Banks must ensure that all FinTech collaborations comply with regulatory guidelines to protect customer data and maintain financial stability. He also highlighted the need for FinTechs to understand and respect these regulations to foster a healthy partnership with banks.
- Addressing the Credit Gap for MSMEs: MSMEs in India face tremendous challenges in accessing credit. There is a huge need for innovative lending models that go beyond traditional collateral-based lending. Suggestions like using alternative data sources, such as UPI payments and social media activity, to assess the creditworthiness of borrowers were highlighted. There is also a need for extending credit guarantee schemes to the service sector to unlock more capital for MSMEs. The discussion underscored the need for a balanced approach that considers both risk management and the need to support underserved segments.
- The Role of Technology in Banking: The discussion also touched on the role of technology in future-proofing banking. The session highlighted various Indian banks’ efforts to integrate AI and digital solutions to enhance operational efficiency and customer service. The key emphasis was that while technology is essential, it should be used to complement, not replace, the core banking functions of deposits and lending.
- India must build FinTech infrastructure: The Indian FinTech market is unique, with successes in digital public infrastructure like Aadhar, UPI, and ONDC. There have been various instances in the past where global FinTech business models have not been able to scale up in India due to its unique demographics. It is imperative that FinTechs should leverage this and continue building infrastructure and products that are India-specific.
Conclusion
The Round Table on Future-Proof Banking provided valuable insights into the challenges and opportunities facing the banking sector. The discussion highlighted the importance of collaboration between banks and FinTechs, the need for regulatory compliance, and the role of technology in enhancing customer experience. As the banking landscape continues to evolve, these insights will be crucial in shaping a resilient and customer-centric banking ecosystem.
If you want to participate in such insightful sessions and engage with industry leaders, join the Cedar-IBSi FinTech Lab. Connect, collaborate, and innovate with the best minds in the field.
