One of the largest and fastest-growing economies in the world, India is often touted as the next superpower. Although the pandemic crisis has led to a global slowdown and India is no different, but still, a nominal annual growth rate of 12 percent holds the potential to catapult the country to a $20 trillion size in less than two decades, which will, in turn, increase the country’s share in the global economy to around 9 percent. While several industries and service sectors are to make a collective contribution to this growth, former Yes Bank CEO Rana Kapoor is one of the premier finance mavens who believed the target can only be achieved through the contributions made by the banking sector.

Rana Kapoor had opined that the Indian banking system lies at the core of nationwide development and hence will play an integral role in catapulting the nation to the status of a superpower. Sustained growth in banking assets along with better products and solutions will spearhead the country’s economic transformation. In addition to this, bringing more people under the ambit of secure banking and rapid consolidation in the financial services sector will add to India’s growth story. Back in the day, the former Yes Bank CEO had listed down some specific banking verticals which will have a huge impact upon the country’s economy in the years to come. Read on to know what they are:

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Omnichannel

There is hardly any aspect of operations today that has not been touched by technology yet. Banking is no different. However, in the coming years, new-age tech concepts such as big data, cloud computing, etc. will redefine banking services through the establishment of omnichannel for customer interaction. Personalized interactions with customers by leveraging the latest technology will enable banks to form a stronger and sustained relationship with them.

Prescient Banking

Prescient marketing refers to the practice of banks offering customers tailored incentives based upon their preferences and consumer behavior. Rana Kapoor had forecasted that prescient banking will emerge as another gamechanger in this digital age, especially since India is a market with high mobile density. With people making more and more use of internet-enabled devices for their banking needs, personalized offers will keep consumers connected to banking services.

Outsourcing processes

Due to the growing size of the market in India, it is expected that competition amongst banking service providers will only get increased in the years to come. This will require a greater focus on part of the banks upon meaningful innovation for better services. The former Yes Bank CEO had suggested that this can be achieved by outsourcing processes such as fraud checking, payments processing, customer authentication, account infrastructure, KYC, etc. to tech service providers.

Cashless Banking

In a country where cash is king, one might assume it to be highly difficult for a shift to a cashless economy to gain ground. However, the digitalization of banking services is expected to invoke greater consumer interest in cashless banking services by revolutionizing the ease of doing transactions. In the current context, further penetration of internet services brought around by the introduction of 5G services could prove to be an enabler.

Branchless Banking

Another perk of faster internet connectivity and better mobile services in the country could be seen in the form of branchless banking. The former Yes Bank CEO had quipped that branchless banking could help achieve an enhanced scale of revenue generation and cost management. With the metamorphosis of mobile devices into portable bank branches getting more prominent, banks will focus more on the betterment of internet-based banking services.

New age financing

The change in consumer preferences and behavior is also bound to bring about a change in the services offered by financial institutions. According to Rana Kapoor, with technology taking over and startup culture reaching new heights in the country, new age banking concepts such as capital subsidy policy for technology up-gradation, MUDRA Bank, cluster-based financing, credit guarantee schemes, incubation centers, and start-up facilities will change the face of financial services arena.

Dynamic risk management

With evolving businesses and the growing scale of banking services, principles like dynamic risk management with the early warning signal approach will need to be made more robust than ever. Strengthening these systems will help businesses face uncertain times with relative ease, which will, in turn, enhance the ease of doing business in the country. The result will be the stabilization of the economy, which will add to India’s overall economic growth. This holds true especially since global commerce is still grappling with the pandemic.

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