Banks Must Embrace Rapid Technological Changes to Ensure Resilience Amid Global Challenges, Says DFS Secretary

Banks must swiftly embrace technological advancements, update their core systems, and focus on compliance and risk management to remain resilient in the face of global challenges, according to Financial Services Secretary M Nagaraju. Speaking at the IBA’s 20th Annual Banking Technology Conference, he highlighted how innovations like DPI and Unified Lending Interface are enhancing financial inclusion.

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During his virtual keynote address at the conference themed "Future Ready Banking for Viksit Bharat," Nagaraju stressed the importance of scaling globally competitive banks and addressing credit gaps. He also emphasised expanding insurance and pension coverage as crucial steps towards achieving the vision of Viksit Bharat by 2047.

Technological Innovations in Banking

Nagaraju pointed out that India's financial landscape is evolving due to innovations such as JAM, UPI, and ONDC. These technologies are driving significant changes in the sector. He also noted the role of AI and ML in improving banking efficiency and customer service, urging banks to enhance data governance to comply with data protection regulations.

He further mentioned the importance of maintaining strong risk measures, especially in cybersecurity, fraud prevention, and mule activity. By innovating and customising products, banks can tap into India’s underpenetrated mass market, fostering growth. Nagaraju advised banks to remain vigilant and upskill their teams for efficient customer service.

Collaboration and Technological Adaptation

The event gathered leading minds from India's financial sector to discuss technology's transformative impact on banking. RBI Deputy Governor T Rabi Sankar emphasised the need for the banking system to keep pace with technological advancements. He advocated for collaboration within the banking sector to tackle new technological challenges effectively.

Sankar stated, "We need to keep up that pace and continue that thinking and approach." This highlights the necessity for continuous adaptation and forward-thinking strategies in banking to meet emerging demands.

The conference served as a platform for discussing how technology can reshape banking practices. It underscored the importance of embracing change to ensure resilience amid evolving global challenges.