Fintech is one of the emerging disruptive technologies rocking the banking and financial sectors, and though it opens up many opportunities, the challenges are also substantial, according to many experts.
They were participating in a panel discussion on fintech here on Tuesday, which was organised as a part of the Vizag Fintech Festival.
R Chandrasekhar, presently with YES Bank and former chairman of Nasscom, said the emerging technologies – blockchain, artificial intelligence and bit data analytics – were extremely disruptive. “On the whole, fintech is re-writing the history of the financial sector. We are passing through exciting, transitional times. However, cyber security issues are critical,” he said.
He said “the flow of data and the flow of money are equally critical, and both should be managed efficiently by employing fintech to pave the way for customisation of services”.
Smita Bhagat of HDFC Bank said she did not view fintech as a threat, though it was bringing about many disruptive changes in the sector.
“I do not view it as a threat but an opportunity. Eighty per cent of HDFC Bank’s transactions are on a digital platform. We are even into digital lending. We are offering loans in 10 seconds,” she said.
RS Sharma, Chairman, Telecom Regulatory Authority of India (TRAI), said “three Cs are critical in making use of any new technology – cost, convenience and confidence. We have 450 million internet users in the country. However, connectivity is still an issue. Many do not have access to internet.”
On the issue of Aadhaar linkage, many of the speakers said that even though the recent Supreme Court judgment had made it clear that Aadhaar linkage is not mandatory for opening bank accounts or for banking purposes, banks may be allowed to make use of it if the customer is willing to do so.
“In a sense, the citizen is the owner of the data relating to himself or herself and if he or she is willing to disclose it, there is no harm perhaps in allowing banks to make use of the platform. I take the view that a general data protection, privacy policy framework is needed to address these complex issues. I think the government is working on it,” said Sharma.
Santanu Paul, of Talent Sprint, moderated the debate.