Digitisation, innovative technologies creating unprecedented disruption in banking sector: SBI’s Khara

Banks need to be agile and nimble as technology increases customer expectation

Banks have adopted the digital revolution, which has reduced their cost and widened the area of services they offer, he added.

"Digital innovation is redefining industries and changing the way businesses function. Digitisation and innovative technologies are creating unprecedented disruption in the banking sector and the rate of change is accelerating," Mr. Khara said at a Dun & Bradstreet event.

Today, digitisation and digital innovations have become a strategic priority for the banking industry, he noted.

"Banks need to be agile and nimble as technology increases customer expectation and the regulatory landscape also evolves rapidly to keep pace with technological advancement," he said.

According to Mr. Khara, there is a realisation among banks that the scale and adoption of digital transformation are to keep pace with the rapidly changing ecosystem.

To achieve the digital transformation goal, banks and financial institutions need to have a clear vision of what they intend to achieve with technology, he added.

Swift absorption and adoption of new technology and innovation, and quality of infrastructure are crucial elements that play a significant role in building confidence in the digital lending system, he said.