Elets Technomedia recently organized a Innovation Talk with Mtalkz Founder, Mr. Abhishek Founder, to discuss the BFSI challenges and strategies to help enterprises grow. Mtalkz is focused on driving organizations growth by building a new communication platform for Enterprises and BFSI Industry and help them grow through future strategies and resilience. The session was conducted by Ms. Rashi Aditi Ghosh, senior assistant editor of the banking and finance post magazine, which is India’s leading B2B BFSI magazine into Innovations and knowledge. Ways in which BFSI industry undergoing digital transformation.
Few of the questions included-
Ways in which BFSI industry is undergoing digital transformation :
Mr. Prakash informed that India has been on the Forefront of Digital Transformation and it is poised for being the biggest consumer marked in the world in in a few years to come BFSI including Banks they make more money when they lend profitably and are able to circulate the money faster if you really look at the potential customers which represent the majority market share there are probably four clear segments that emerge the MSMEs the Agritech and the agriculture and the large business house. The entire BFSI has an interesting job at hand to grow digitally without compromising on the personally identified information based on certain industries Smiths we might be sitting today on a potential fraud of 60 000 crores and this can hit any time through the lending apps not to forget recently if you remember RBI had brought down more than 200 Chinese driven lending apps which were compromising the personal identifiable information and harassing the customers with the lows they would have what they may not have taken as a region depth of the BFSIs it is a strong Focus you know for any any industry any any Nation to grow BFSI has a very strong role as the depth and reach of BFSI defines how our nation grows in India we have fairly large and a common job at hand to grow the entire business industry not just the banks but we have to grow in such a way that we are able to lend more across the BFSI industry the NPAs are down and we are rotating the money faster in terms of digital transformation we’re going to see a lot more of digital transformation in field of lending engagements credit card engagements deposit openings fixed deposits recurring deposits and all the deposits from the deposits that general public is making with the banks KYC renewals and Collections and we are also going to see a really deep amount of digital engagement, digital transmission, digital engagement in all forms of interaction that any bank financial institution or company involved in BFSI segment is going to have their customers so in all we are seeing a very exciting times coming up in next 10 years probably in my prophecy will enable the BFSI to see those transformations which we we may not have seen in last 70 years.
How artificial intelligence and business intelligence in the Indian banking space is ensuring Innovation
Mr. Prakash mentioned that a bank or any other financial institution makes money essentially through an Arbitrage model. Banks lend money at a higher rate of interest than they offer for deposits and this Arbitrage helps them make money and we also know how banks grow, there are probably three key areas if done correctly for any bank will result in above average growth rates for the banking industry these are Agile lending and Collection Cycles enhance transparency and security and increasing the wallet share with the consumers now let’s try and put all three things into context of AI and business intelligence agility, this is something which will transform into designing better and better digital Journeys for the consumers building AI and predicted interventions for pushing ease of doing business right agility predictions and ease of doing business comes together. Transparency and security requirements will transform into token based lending and this will automatically lay out grounds for collection of data for deep Intelligence and Analytics and this analytics will enforce transparency and Security in end-to-end transactions
I am briefly alluding to crypto and use of NFTs over here now when you look at increasing wallet share this will transform into predicting on a continuous basis the future and emerging need of each customer relationship and each financial institution will go towards governing a major share of his wallet spend and his needs so this this in a very simple way explain how three key areas of banking performance will dovetail into growth and requirements that will be driven through supportive technology which is fueled by AI business intelligence crypto and NFTs. He stated some clear benefits of ELP once it comes out:
It will simplify our cross border transactions we will not have to depend on swift settlement systems thereby removing all kinds of flows and intermediaries which were adding value and not much of which are adding cost and not much of value in the in the whole transaction. Essentially if you look at any any value chain there are three things which flow across any value chain one is money second is information and third is Goods so what crypto and introduction of e rupee by the RBI is going to do is they’re going to tie together the movement of money with the movement of information say for example today if I were to take you back in a few years back what was the benefit of DBTL the Direct Benefit Transfer Linking there was, I think a huge maybe about 15,000 crores of money that was being siphoned off from government offers and nobody knew where that money was going the moment you link the movement of money with a specific reason that the DBTL will not be offered directly on the cylinder but it will come late and directly into the bank of the user the entire money offshore just vanished. So this is what is going to happen today also in NREGA, if you see there’s a lot of fraud happening out there with the supervisors forcing people to draw money and then collecting protection money from them for every money or rupee they receive.
So with the crypto the government will be able to tag the money spent to specific Outlets specific products like for example if fertilizer subsidy is given in form of a e rupee it will be tag and it can be only spent and at a fertilizer shock thereby ensuring that all the money which is moving for a specific need a grant or a specific purpose is spent only at a rightful place and it is not used for you know misappropriation and mis usage of that Grant and this is the kind of behavior that we’ll see in international transactions also, all International transactions are going to move a very specific manner with a specific and defined activity hence the whole International movement of money also is going to become more smoother, transparent and agile.
What is importance of segmentation targeting and creating personalized experience of experiences for the customer
Mr. Prakash shed light on Philip Kotler, who has been writing for more than 50 years about segmentation targeting and creating personalized experience so I’ve been an Avid Reader in my marketing and education days but however if you really look at it the answer is relatively simpler. However it takes a lot of doing to get it right and have the expected outcome. Nowadays with proliferation of mobile phones 5G upcoming and internet banking there is a need of continuously enhancing the digital experience for customer and enhancing it at all the touch points or the 360 angle degree coverage and continuously delivering a stunning and wow experience to the consumer and with ease of use
Now what BFSI specifically needs to do in this area is that need to unlock the power of data using data Lakes for business transformation, so we’re going to generate a lot of Big data a lot of analytics data is going to get generated this all always are getting generated.
And we’ll have to continuously segment hyper segment usage of AI, Drive predictions and make sure that we are always very close to growth and compliance so it’s a balance that we have to do the more digitalization we do; we open doors for Fords and the more security we provide, we are challenging the ease of use so this is a delicate balance that bfsi players need to do but there’s technology out there, there’s crypto, there is AI there’s, predictive, there is data Lake which is out there. So all these have to be used in conjunction to provide that stunning experience and enhance experience every time a consumer interacts with the financial institution.
Every interaction has to be so designed that a customer is encouraged to increase his wallet share let me go back how did I say I said that financial institution grows when a consumer which is spending 20 lakh rupees or depositing 20 lakh rupees in your bank account, in about six months or one year is depositing 60 lakh rupees so you’re quite 60 percent of his bank spend and wallet share that is how a bank grows one you have to acquire more customers and more second you have to increase ease of use and the third you have to increase the wallet share or wallet usage among that for that customer spend in your in your financial institution. Banks have to design these experiences to stay on top of Mind recall for all financial needs in fact what we are seeing now today is also happening in SAAS, e-commerce and retail everybody is trying to become a super app. So banks have a unique ability to do that combined Market spaces and provide such an experience that they become the super app and stay on the top of Mind recall for all financial needs of the customer. Cut out very simple there is a lot to do it will take a lot of doing to do it but today I think the technology and the knowledge and the tools exist to for us to create those Journeys and extend extending that excellent interaction experience driving higher seaside to the consumers.
A take on *RBI’s Fintech Roadmap or what is the role of a central bank for any economy
It’s very clear among many other things that a RBI do at a very high level, the primary job of RBI is to create and maintain Financial stability enable High rotation of money and prevent frauds right when you do this you deliver a very high amount of customer satisfaction by doing the above doing these things. Financial stability rotation of money and prevention of fraud what subtly Banks and central banks come together to deliver a picture of high growth and economic stability for the country, the moment International countries know that there is a huge market there is huge consumer market and it is growing very fast because there is no big stability in the country. automatically attracts a huge foreign interest and investment and when that foreign interest investment comes with the right economic policies it fuels the overall Made in India or making my country growth and it results in an overall very high speed of Economic Development and let’s also remember that we are going to be a very big consumer economy in next 15 years probably either the number one or number two so times will tell that so everyone across the world is looking in India at India to build their business in India to sculpt and grow stories with the growing new super power. Remember the growth potential in all economically developed countries Japan, USA, Germany these have kind of platoed out so everybody is looking for a new destination where there’s economic stability and there is a growth of business. High rotation of money and that is exactly the roadmap that RBI has and RBI will not be able to do it alone it has to create opportunities it has toco-work with the banking institutions it has to co-work with the FinTech’s of the world to enable this RBI roadmap just to make a point to close the make a closure on this statement today we we know Ikea came into India about four years back just before the pandemic had hit and today India is the biggest market for Ikea much bigger than even USA so that’s the power of an Indian economy that’s the power which this government has given to India the economic stability and the role of RBI and the fintech is absolutely in the right direction they are going out towards creating more financial stability their enabling High rotational money and they’re building avenues for prevention of fraud.
If you look at and this has been a thread which you’ve been discussing all through this discussion the entire business world is moving to a sort of realigning itself to anew business process a lot of business process re-engineering is taking place in terms of customer engagement and this has been further fueled and it has become almost like exponential in nature in terms of the transformations that are taking place post the global pandemic the digital experience all all all analysts all enterprises all catalysts are I have predicted that the digital experience management interaction management or digital on-boarding and digital client service these have these have to be impeccable for any organization to drive a differentiation and customer satisfaction.
Mtalkz is building a new platform which will provide a confluence of all conversation channels such as SMS, Email, WhatsApp to caller Google Business messaging, Instagram combining these with the AI and predictive analytics by use of this enterprises will be able to consume all these services from a single web or an app interface and they will be easily able to build exciting new engagements and service journeys in matter of minutes so you have a digital onboarding point, you have a digital interaction point, you have your core software sitting in background you don’t need to build bring out with new software you just dovetail your APIs with Mtalkz and build some new exciting journeys on the platform designed for handling, anonymity, security so all your requirements will be taken care on the platform the whole platform will be supported with intuitive analytics and this will help Enterprises drive or have data for driving deeper segmentation deeper targeting a specific targeting and in overall enhance the reach specific reach out to their customers and increasing the long-term value of each customer relationship and improving the return on investment on all their marketing reach outs and engagement expenses. For financial services industry we are already you know working with certain professionals and financial institutions build engagement use cases in field of learning and engagement that are pre-loan during the loan and post loan servicing journeys fixed depositor any other kind of deposit opening Journeys and credit card user engagement. These are requirements which we clearly see emerging for most of the banking financial services industry and at the same time we are open to work with large SAAS companies which are looking forward to build some similar experiences for their customers in retail or SAAS space so that’s that’s what we have planned to do. Our job is pretty straightforward cut out build infrastructure build applications make platforms that are ready to consume and build specific Journeys for the BFSI segment.