Banks leveraging latest technologies to unlock new opportunities & overcome challenges

By siliconindia  |  Thursday, 06 July 2023, 14:34 IST

Having completed his B.Tech in Mechanical Engineering from IIT Kharagpur and PGDM in Finance & Marketing from IIM Calcutta, Gautam boasts of a 28 years long career during which he has held positions across an array of companies such as ICICI Bank, i-flex Solutions, Infosys and Capgemini, prior to joining Coforge in 2017.

Siliconindia recently got a chance to interact with Gautam Samanta, President, Coforge about the current financial services landscape, technology disruptions and various other aspects. Below are the excerpts from the exclusive interview

What are the latest technologies impacting the banking sector?

The banking sector is undergoing rapid transformation as a result of the latest technological advancements. These technologies are reshaping traditional banking operations, customer experiences, and business models. The pandemic has accelerated the speed of change manifold. For example one of our clients enabled three million additional clients on its digital channels which required massive modernization at the core.

Some of the most significant technologies impacting the banking sector are Artificial Intelligence, Machine Learning, Blockchain, Cloud Computing, RPA, Digital Banking and Open Banking, to name few. Both AI and ML immense potential in revolutionizing the banking sector, and with the recent advancements in large language models (LLMs) the impact would be even more pronounced in the medium term. While these technologies offer improved efficiency and cost savings, banks must address associated challenges such as data privacy and security concerns. Although blockchain and distributed ledger technologies can streamline processes, enhance security, and reduce costs, their widespread adoption requires overcoming regulatory hurdles, standardization issues, and scalability limitations.

On the other hand, Cloud computing has been a game-changer for the banking sector, enabling banks to achieve increased scalability, flexibility, and cost-effectiveness. By embracing cloud-based solutions, banks can accelerate product development, enhance data analytics capabilities, and improve operational efficiency. Nonetheless, banks must carefully manage risks related to data security, compliance, and vendor lock-in. Banks can also integrate LCNC platforms with RPA to redesign processes, implement them at speed and automate repetitive & rule-based tasks, freeing-up resources for more strategic activities. However, it is crucial to address associated risks, invest in employee development, and ensure regulatory compliance to capitalize on these technological advancements fully.

How is technology making banking services more accessible to the customers?

BFSIs can efficiently use technology to ease the banking process for customers by developing user-friendly digital banking platforms, including mobile apps and web-based portals, enabling customers to access their accounts, make transactions, and manage their finances anytime, anywhere. Also, implementing an omnichannel approach ensures a seamless and consistent customer experience across all touchpoints. Furthermore, leveraging AI technologies such as chatbots and virtual assistants can provide instant and 24x7 support to customers.

Similarly, banks can use advanced analytics and machine learning algorithms to analyze customer data and identify their unique needs and preferences. By automating routine tasks, such as account opening, loan processing, and KYC verification, BFSIs can streamline operations, reduce human error, and expedite customer onboarding. Most importantly, by using technology for enhanced security measures, banks can help protect customer information and build trust.

What are some of the factors banks must consider while introducing a new technology in their process?

Banks have an abundance of options when it comes to new technologies that offer significant advantages. However, they must be sure that any new technology that is being implemented should not only align with their overall business objectives and strategic vision but also seamlessly integrate with the existing systems and infrastructure. Also, before implementing new technology, banks should conduct a thorough cost-benefit analysis to determine the potential ROI. Some of a few other key aspects to consider while implementing a new technology are regulatory compliance, data security & privacy, flexibility to scale and its impact on customer experience.

How can banks prevent data theft through the latest technologies?

Banks can prevent data theft by leveraging the latest technologies to strengthen their security measures and protect sensitive information. Some key technologies and strategies that banks can adopt to safeguard against data breaches and cyberattacks are implementing multi-factor authentication using strong encryption algorithms to protect sensitive data, and deploying IDPS solutions to monitor networks for signs of suspicious activity, potential threats or policy violations. Also, banks can also leverage AI and ML to analyze large volumes of data and identify patterns indicative of potential security threats.

Conducting regular vulnerability assessments and penetration testing can help banks identify weaknesses in their systems and address them before they can be exploited by attackers. Additionally, they can also implement regular training and awareness programs to ensure that their staff follows security protocols and can recognize potential risks. Lastly, adopting a zero-trust approach to security and having a well-defined incident response plan in place allows banks to react quickly and effectively in the event of a data breach or cyberattack.

In your opinion, how do you expect banking tech to evolve in the near future?

The next five years promise to be an exciting period for the banking industry, as technological advancements and emerging trends reshape the landscape. By embracing automation, AI, machine learning, new devices, and enhanced cybersecurity measures, BFSIs can revolutionize the banking experience and create value for customers. However, it is crucial to develop strategies that prioritize customer centricity, innovation, workforce development, agility, and data protection to fully capitalize on these changes in the banking tech landscape.

Over the next five years, Automation, AI & Machine Learning will revolutionize the banking sector and we will witness the emergence of new devices and platforms that will revolutionize the way customers interact with financial institutions. Also, the need for robust cybersecurity measures to protect sensitive data from cyber threats will be at an all-time high. Lastly, banks and fintech innovators must adopt a collaborative approach by partnering with fintech startups to stay competitive in the rapidly evolving banking tech landscape.

ON THE DECK

siliconindia