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November - 2016 - issue > CXO Insights

Top Three Banking Challenges - How Fintech Can Help

Navin Chandani, Chief Business Development Officer, BankBazaar.com
Monday, October 31, 2016
Navin Chandani, Chief Business Development Officer, BankBazaar.com
Headquartered in Chennai, BankBazaar.com is the financial service provider defining the online loan experience for more than five years and has grown into the leading online platform for loans & credit cards in India.

Banking in India is in a state of flux. Interconnection of banks and branches has streamlined processes and compliance. There is higher transparency and visibility. Automation has rewritten how customers approach banks and banking for the better. What is interesting is that most of these changes have been driven by non-banking factors, primarily technology. However, technology has brought along its own set of problems that banks today are hard-pressed to deal with.

The biggest challenges that banks today face, despite technology and often because of it, are meeting customer expectations and regulatory requirements while keeping a handle on the bottom line.

1. Customer expectations: Technology has changed the way people interact, consume, and transact. The customer demand is for an extended value proposition that is more personalized and instant. Information is no longer a luxury or a perk. With the click of a few buttons, everything you need is right there in the palm of your hand. This has redefined the way people transact. An increasingly online and mobile customer base is rewriting the meaning of quality service. These days, it is all about customer experience. The e-commerce trend of comparing and shopping for the best deals is making its presence felt in the financial sector as well, and many banks are feeling the pressure to deliver the level of service that consumers are demanding.

2. Compliance: The transparency and speed that technology enables has enhanced its appeal not just among customers but also regulators. This has given rise to various regulatory compliances, especially around data confidentiality and integrity measures for customer data, authentication, access control, etc. However, these regulatory requirements change and continue to increase with time, and banks are under pressure to be compliant, and build systems and processes to keep up with the escalating requirements.

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