Challengers' Strategies 2019 - Who, What & How

CEOs of the 15 new BFSI organizations (Challengers) opened their hearts and minds for our cover story on the road ahead:

- Ravi & Manoj

In the last few years, the number of BFSI organizations in India has mushroomed. With RBI giving out new banking licenses and several new digital-DNA driven NBFCs emerging, Banking Frontiers interviewed CEOs of 15 organizations comprising payments banks, small finance banks, insurance companies as well as NBFCs.

This study probed 4 key aspects that are deeply relevant in today’s scenario - opportunities, challenges, competition and transformation. Since technology has become the pillar of all activities, it was an area of special focus. We approach 40 new BFSI organizations and are thankful to the 15 that responded.

DIGITIZATION – DIFFERENT STROKES

Digitization has become an important element of the BFSI industry. Many things today are done through digital channels and all the traditional banks are using digital internet banking and mobile banking. The challengers are creating complete paperless models. Digitization is also rising in rural areas thanks to smart phone penetration.

India is a cash dominated economy. Due to digitization, there is a shift from cash to non-cash and it will continue in 2019. In 2019, most of the lending banks in India will be digitized in the way they source and service their customers for many of the products and payments solutions. Rajeev Yadav, MD & CEO at Fincare Small Finance Bank shares the details of digitization strategy adopted by his bank: “Fincare Bank has focused on digital banking from the first day of its launch. Opening of accounts in 15 minutes and paperless lending are popular among our micro-finance customers as well as liabilities customers.”