Modern Indian Banks: Navigating The New World Order

The resilience of the Indian banking system, often called ‘conservative’, has been the highlight for the financial services industry

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THE SPARKS of distress in the US and European banking systems have set off alarms around the world even as the murmurs of an impending recession grew in early 2023. But the resilience of the Indian banking system, often called ‘conservative’, has been the highlight for the financial services industry. However, 5G is much more than just high-speed internet and low latency. In fact, more than anything 5G will be the bedrock and a platform to build technologies and services upon which were previously impossible.

A large chunk of this resilience in Indian banking is due to the secure parameters of capital adequacy, percentage of stressed assets or liquidity coverage ratio of individual banks or issues like provision coverage ratio, the profitability of banks and more. These were noted by RBI Governor Shaktikanta Das last month at a press conference in Washington. But another aspect which is ensuring performance and survival is their strategies to remain relevant by keeping customer at the centre of all things banking.

Finding Relevance

In the last few years, FinTech companies and startups have clearly chipped away at the market shares of many banks by offering financial services to the underserved. They have addressed the gaps which were largely beyond the reach of traditional banks due to their evolving understanding of technology and leveraged them to expand reach.

But this is changing as banks increasingly step-up collaborations with FinTechs and tech conglomerates to stay relevant to the times and constantly changing consumer behaviour.