Reserve Bank of India (RBI) Deputy Governor Swaminathan J has underlined the need for collaboration among entities for success of any institution.
“The success for any one institution cannot come in isolation. It depends on the strength of the entire ecosystem, and on the quality of collaboration among banks, non-banks, market participants, fintechs, regulators and customers,” said Swaminathan at ‘Success Through Synergy’, an annual banking event organised by Standard Chartered Bank, on Friday.
According to Swaminathan, traditional risks such as credit, market and liquidity risk have become more complex. “Lending is more granular, markets are deeper, and interconnectedness has increased.”
Swaminathan on customer service?
Swaminathan also emphasised the customer service. Though technology has helped banks to reach out to customers better, basic expectations of customers remain very human, he said. In a rapidly-growing technology era, the deputy governor said, the products should also cater to those who may be less comfortable with digital interfaces.
Concerning the rising competition from fintechs, he said these entities have entered almost every segment of financial services and have brought fresh ideas. He urged banks to look at how to structure partnerships where strengths of each are combined in a safe and sustainable way.
Swaminathan on digital scams
At a situation when digital scams are increasing, the deputy governor said the lender should prioritise on sharing of fraud typologies, coordinated efforts to take down mule accounts, and working with law enforcement agencies, along with detection and alerting customers. This action would foster the perception among customers that banks support them during the crisis, he said.