Fintechs Are A Boon For Financial Services, Says A Panel At BW BFSI CXO Summit
"Fintechs can get us value in terms of a completely different business model,” said Dibyanshu Lahiri, executive director, and group head – digital, Centrum Financial Group
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Fintech services over the last few years have been a tremendous boon to banking and financial services. Fintech companies are fast filling the services and the business gap in banking, and banks and financial services companies are increasingly seeking out fintech partnerships to drive into newer business areas.
“There is plenty of whitespace in banking. A fintech company can fulfill some areas. We are looking at lending fintechs operating in micro- and small SMEs. Fintechs can get us value in terms of a completely different business model,” said Dibyanshu Lahiri, executive director, and group head – digital, Centrum Financial Group, at the BW BFSI CXO Summit in a panel discussion.
Banks are closely looking at fintech companies to collaborate and partner with. “We are trying to find out problem-solving fintechs as we look at what we can solve. We searched for a right partner for a GST package and we worked with a fintech. Within a span of two weeks, got rolling out that particular software. So it’s about what fintech issue you want to solve,” said Prasanna Lohar, head – innovation and architecture, DCB Bank.
The topic of the panel discussion was: “The New World of Finance: Fintech, Blockchain and more.”
Lohar noted that financial services and fintech companies need each other and are more integrated now. “As a bank, I cannot succeed without fintech companies, and similarly fintech companies also need banks,” continued Lohar.
Blockchain is also increasingly being adopted by financial companies and banks particularly. Trade finance and bill discounting are some of the areas where banks are working on blockchain technologies. Blockchain technologies are also useful when there is a duplication of data such as KYC data, etc.
Blockchain comes useful trust has to be established between multiple banks or between devices. Blockchain can remove out the middle men. “When more than two parties are involved you can bring on that on the blockchain,” said Lohar.
Sachin Seth, partner Advisor – Services, fintech and innovation practices and financial services, Ernst & Young, moderated the panel discussion.