Tapan Agarwal

Banks are just not spending enough on technology...RBI Deputy Governor Mr. Swaminathan. But is that the only cause behind the malaise banks' technology ? This article from Economic Times delves further into it...its quite clear that banks themselves have been left behind in banking technologies. One of the things that they also need to get rid of the "vendor" mindset, and get into the "partner" mindset when they work with fintechs to build better customer experiences. https://lnkd.in/gAMyw3Se #fintech #banking

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Key highlights from the ETBFSI article on Private Banks (PVBs) Q4 performance: 1. NIM Decline: PVBs saw a 34 bps decline in Net Interest Margin (NIM) to 3.60%, impacted by rising deposit costs. 2. NII Growth: Net Interest Income (NII) grew by 16.3% YoY to Rs. 0.75 lakh crore, driven by healthy loan growth. 3. Advances & Deposits: Robust advances (30.8% YoY) and deposit growth (27.0% YoY) were noted, driven by mergers and personal loans. 4. CASA Ratio Impact: CASA ratio dropped by 432 bps YoY to 39.8% due to slow CASA growth and increased time deposits. 5. C/D Ratio Expansion: Credit-Deposit (C/D) ratio expanded by ~787 bps YoY to 100.9%, reflecting wider credit-deposit growth. Looking forward, sustaining loan growth hinges on liability franchise growth, while NIM trajectory may remain stressed amidst intensified competition and merger impacts. Link: https://lnkd.in/dDNWZc-n

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Exploring the digital payment revolution: How #India's #UPI and #Brazil's #Pix are transforming financial transactions. In a comparative analysis of these two groundbreaking systems, we dive into their impact on financial inclusion and the future of cashless economies. NPCI International Payments Limited (NIPL) #DigitalPayments #Banking #Transaction #Revolution #Fintech Check out the analysis here: https://lnkd.in/dZ2iuCDV

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Temenos Launches the FIRST Responsible Generative AI Solutions for Core Banking! 🧠 🌟 These secure solutions effortlessly integrate with Temenos Core AND Financial Crime Mitigation (FCM) 📊 Using Temenos Generative AI, customers can engage in natural language queries to generate insights and reports, massively REDUCING the time it takes for business stakeholders to unlock the power of CRUCIAL data 👩‍💻 Prema Varadhan, President Product and COO, Temenos, commented: “We all use AI in our daily lives and benefit from the personalized services and insight. Temenos Explainable AI offers transparent, auditable insights while our Generative AI infused platform delivers these insights instantly in an intelligent and personalized way. Temenos ensures responsible AI practices by providing explainability, security, safe deployment, and banking-specific capabilities. With our AI platform, banks can rapidly implement real-world use cases that enhance efficiency, boost profitability, and create hyper-personalized customer experiences.” Find out more on the link below! 👇 https://lnkd.in/eTX222ny Bola Rotibi #banking #generativeai #bankingsolutions #artificialintelligence

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Dive into the dynamic world of MSME lending and explore unique perspective of Punit Jain, CEO of Servosys, on leveraging technology for hyper-personalized lending experiences.  ETBFSI Watch the full video now: https://lnkd.in/g3rRSEZj

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Edit: Tagging Amitabh Chaudhry after getting no resolution despite multiple follow-ups. Broken state of customer servicing in financial services: From delayed responses to unresolved issues, leading to frustration and disengagement, often culminates in customers discontinuing the use of services. Axis Bank is leading this worst financial services list. For a simple ENACH, you have to travel to their loan service center tagged with incorrect map location, only to know that it will take 25 days to activate ENACH. I don’t know whose idea was to separate bank branches and loan centers in Axis bank but worst idea. Reserve Bank of India (RBI) #axisbank

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Temenos has introduced Temenos Positions❕ 🏦 Temenos Positions is designed to TRANSFORM banking operations for institutions with complex, multi-core systems across multiple lines of business in both Retail AND Corporate banking 🎉 It will leverage DECADES of investment in the Temenos core banking platform, ensuring that it can meet the complex use cases for back value processing and MULTIPLE balance types 👨‍💻 Tony Coleman, Chief Technology and Innovation Officer, Temenos, commented: “The inconvenient truth for many banks is that they have no real-time positions or funds authorization across the enterprise. Temenos Positions solves this problem by providing a real-time source for all balances and funds authorization. Engineered to handle a vast number of instruments and high-volume processing, Temenos Positions can process high volumes of instruments efficiently and at scale. It does this without Close of Business processing, just a simple date flip, making it ideal for banks with large transaction volumes.” Find out more on the link below! 👇 https://lnkd.in/dN-PKQ6K Jost Hoppermann #banking #corebanking #corebankingplatform

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IT Governance in Banks has been in the news over the recent past after a series of regulatory actions against lenders by the RBI. My piece here just provides an overview of the issues / challenges on this front. Comments welcome, as always.

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Our article on innovative financing solutions for MSMEs is featured in CXOToday, many thanks! Customers (Retail and Wholesale) are increasingly discerning and platforms need to keep pace to ensure that they can provide top-notch credit solutions to their clients. #india #msme #msmeindia #loans #credit #innovation #interfaceventures #indirow

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Came across this insightful article on ET BFSI. The writer has highlighted - lower IT spending of Indian banks compared to the global banks despite having a larger user base(1% vs 3%) - challenges banks are facing while dealing with multiple vendors(patching instead of problem-solving) - recent actions taken by the RBI on the top banks - the reasons behind it, and the possible solutions as a banker, if you resonate with the writer, feel free to discuss with Signzy, we can work towards a seamless yet regulator-friendly solution in terms of the onboarding journey, API orchestrator, and ID verifications from the source! #bfsi #bankingtech

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Beware the enticing headline. It can take you down a rabbit hole. I have heard on the grapevine that 'fraud is booming' since UPI was brought in to enable account-to-account and online payments in India. Now I read that 'Online Payment Frauds Jump Over 400% in India, RBI Data Shows'. Worrying news, for sure. But when you look at the quantum, online fraud is still very low per head of population in India compared to the UK. Here, total payments-related fraud (online and other, covering both scheme and bank rail payments) is about £1.2bn per year, of which online fraud is £250m for payments on card rails and £150m for payments on bank rails (APP) based on my understanding of the recent annual fraud report from UK Finance. This is an average of £5.60 per person. It looks like India is catching up, with $175m (£138m) of fraud from online payments alone, a 400% growth rate. But India has a population of 1.2bn or so. So this represents only 11.5p per head of population. So should India be worried about having online fraud levels at 2% of the levels in the UK? It hardly seems to be a damming indictment of UPI. Or maybe I am missing something, and have disappeared down another rabbit hole altogether. Comments welcome. Yash Khanna Sriram Chatty Jane Jee Jana Mackintosh Paul Horlock Akhil Rao Neil Harris Mitch (Munish) Trehan Tom Brewin Riccardo Tordera-Ricchi Bloomberg Robert Courtneidge https://lnkd.in/gzqGF7rZ

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After raising risk weightage of unsecured loans, asking fintechs to temper down growth, RBI has now cautioned 4 banks on the poor quality of assets being sourced through co-lending channels. The slow down of personal loans will continue throughout this year. #digitallending #fintech #regulation https://lnkd.in/gci_7vxA

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Aadhaar architecture, authentication, e-KYC, and more Aadhaar is a 12-digit unique identity number issued to residents of India based on their biometric and demographic data, managed by the Unique Identification Authority of India (UIDAI). This innovative system streamlines identity verification, providing a seamless, quick, and cost-effective process for various services through robust authentication and e-KYC (electronic Know Your Customer). Aadhaar’s architecture includes biometric and demographic matching, secure transmission via Authentication Service Agencies (ASAs) and Authentication User Agencies (AUAs), and a strong consent framework. This ensures efficient handling of authentication and KYC requests, facilitating financial inclusion, reducing fraud in government benefits, and simplifying digital onboarding for services. Despite privacy concerns, UIDAI has implemented measures like data encryption and minimal data sharing to safeguard user information. Dive into our blog to explore the detailed architecture and transformative impact of Aadhaar. https://lnkd.in/g3DrvKpj #aadhaar #ekyc #aadhaararchitecture #kyc #aadhaarkyc #uidai #authentication #aadhaarauthentication #fintech #productmanagement #productmanager #indianfintech #fintechpm

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Understanding Scheduled Banks and Their Benefits: A Closer Look at RBI's Recent Circular In a recent circular, the Reserve Bank of India (RBI) announced the exclusion of "Fincare Small Finance Bank Limited" from the Second Schedule to the RBI Act, 1934. This significant update is a result of Fincare's merger with AU Small Finance Bank, effective April 01, 2024. As a result, the list of small finance banks in India has now reduced from 12 to 11. What is a Scheduled Bank? A scheduled bank is one that is listed in the Second Schedule of the Reserve Bank of India Act, 1934. Banks included in this schedule must fulfill certain criteria set by the RBI. Minimum Paid-Up Capital and Reserves: It should have a paid-up capital and reserves of an aggregate value of at least ₹5 lakh. Satisfactory Financial Stability: The RBI must be convinced that the bank's affairs are not being conducted in a manner detrimental to the interests of its depositors. Compliance with Banking Regulations: The bank must adhere to various provisions of the Banking Regulation Act, 1949. Benefits of Being a Scheduled Bank The inclusion in the Second Schedule comes with several key benefits that enhance the operational capabilities and credibility of a bank: Access to RBI's Financial Support: Scheduled banks are eligible for loans from the RBI on specific terms, which can be critical for liquidity management. Membership in Clearinghouses: They can become members of clearinghouses, facilitating the smooth clearance of cheques and other instruments. Enhanced Market Reputation: Being listed as a scheduled bank improves the institution's credibility and trustworthiness in the eyes of customers and investors. Historical Context: Past Additions and Deletions The list of scheduled banks is not static; it evolves with the banking landscape. Over the years, several banks have made their entrance while others have exited. For example: Addition: Bandhan Bank was added to the list in 2015, marking its transition from a microfinance institution to a full-fledged bank. Addition: Shivalik Small Finance Bank was added to the list in 2021, becoming the first urban co-operative bank in India to transition to a small finance bank. Deletion: The Cooperative Bank of Ahmedabad was excluded in 2017 after it ceased operations. Merger of PSU Banks: In recent years, several public sector banks have merged, leading to their removal from the list as independent entities. Notably, the merger of Oriental Bank of Commerce and United Bank of India with Punjab National Bank in 2020 reduced the number of scheduled banks. The recent exclusion of Fincare Small Finance Bank Limited from the Second Schedule underscores the dynamic nature of the banking landscape in India. Staying informed about such changes and understanding the implications of being a scheduled bank can be crucial for stakeholders.

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A vital part of my thought process as the Executive Vice Chairman of Shriram Finance Limited & as the chairman of is FIDC India, is : As stakeholders in the financial services industry, how do we enhance financial inclusion? I strongly believe that it is one of the important markers of the industry's progress, and I believe that as NBFCs, have worked hard to contribute significantly to the rise of RBI's inclusion Index from 43.4% in FY 17 to 60.1% today.  However, the index also shows that a significant portion of India is still underserved. In a recent article I penned for the The Economic Times, I discussed the strategies that enable NBFCs to drive financial inclusion. These include: - Leveraging the strength of data & technology to assess creditworthiness, - Expanding our reach into rural areas,  - Forming strategic partnerships with banks, payment aggregators. Our industry's concerted efforts will allow us to serve a wider customer base, providing access to credit and various other financial services. This is a powerful testament to our commitment to promoting inclusive finance. I look forward to your inputs on : How the industry can ensure that the benefits of our growing financial sector reach the unbanked and underbanked? #financialinclusion #NBFCIndia #Financeindustry

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RBI's new draft rules for project finance loans - How intense can be the impact on banks & NBFCs if passed? In brief, though still in draft stage, the probability of provisioning% for project finance loans (i.e., loans for building infrastructure...roads, bridge, port, dams etc etc.)........going up from the current 0.4% to max. till 5%......can be a pretty huge load... Also with the objective of making India a developed nation by 2047 (budget for the same allocated as 11 lac Crores in the interim budget FY25)....infrastructural development will be a key driver.... And with the above rule if gets passed can pose as a challenge for the same.....as in a way or the other....either it will have an impact on the profitability of the banks/NBFCs or they will pass it on the borrowers (can get expensive by atleast 1-1.5%).. But we are also aware of the bad loan problem that had shaken the industry about a decade back....with 52% of the stressed loans being related to infrastructure..... So, yes, reasons are there for our central bank to be stringent....but will wait to see how it ultimately unfolds... https://bit.ly/3USjFV8

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Future Finance in India with Digital Public Infrastructure Looking forward for my Keynote address at Banking Frontier's Technoviti 2024 tomorrow 19th June The future of finance in India is being transformed by the rapid development and adoption of Digital Public Infrastructure (DPI). DPI encompasses the foundational digital systems that enable essential services like identity verification, payments, and data exchange. This transformation is setting the stage for a more inclusive, efficient, and innovative financial ecosystem. Here's a look at how DPI is shaping the future of finance in India. Key Financial Digital Public Infrastructure 1. Aadhaar: The world's largest biometric ID system provides a unique identification number to residents, enabling streamlined KYC processes and access to financial services. 2. Unified Payments Interface (UPI): A real-time payment system that allows instant transfer of funds between bank accounts through mobile devices. 3. DigiLocker: A secure cloud-based platform for storing and sharing documents and certificates digitally. 4. Account Aggregator Framework: A system that allows individuals to securely share their financial data with service providers, enabling better access to credit and personalized financial services. 5. Open Network for Digital Commerce (ONDC) :Democratizing digital commerce and creating an open, interoperable network for e-commerce. India have seen Great Boost for Financial Services 1 .Financial Inclusion - Access to Banking  - Microfinance and Digital Lending 2. Payments - Seamless Digital Payments  - Reduced Cash Dependency  3. Credit and Lending - Enhanced Credit Access  - Lower Interest Rates 4. Insurance - Digitized Insurance Processes  - Personalized Insurance Products 5. Investments and Wealth Management - Democratized Access  - Automated Advisory Services Let's look at Challenges and Considerations - Data Privacy and Security - Digital Literacy - Infrastructure Development - Regulatory Framework - Future Trends- Integration of Blockchain Technology - Fintech Collaboration As India's digital financial infrastructure matures, it will increasingly integrate with global financial systems, enhancing cross-border transactions and investment opportunities. Digital Public Infrastructure is revolutionizing the financial landscape in India, making it more inclusive, efficient, and innovative. By leveraging DPI, India is poised to achieve significant economic growth and social development, ensuring that financial services are accessible to all segments of the population. As the digital ecosystem continues to evolve, ongoing investment in technology, education, and regulatory frameworks will be critical to sustaining this momentum and realizing the full potential of future finance in India.

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