Chairman of State Bank of India (SBI), Dinesh Kumar Khara, said fintechs in the country should focus on prioritising customer-centric solutions for banks.
“If fintechs focus on customer-centricity, reliability, and the ability to offer solutions that meet the problem statements of banks, the chances of success are higher. Customer centricity should focus on convenience and reliability. Moreover, the demand today is the essence of time and the scaling of digital services that revolve back to enhancing the customer experience,” he said.
The head of country's largest Public Sector Bank (PSB) said this in a chat on “Building a Digital Bank within a Bank” at the Global Fintech Fest 2023 on Tuesday. Khara was hosted by The Economic Times Editor Amol Dethe.
YONO
He also informed that YONO's retail arm has clocked around 6.5 crore registrations, with one crore active daily users. The platform sees an influx of 35-50 thousand new registrations every day and over five lakhs of remittance transactions. YONO is digital banking platform of the SBI.
"With the new wave of innovative features set to be launched on the platform, this in itself is a digital bank within a legacy bank," he said.
He added that the app generates a quarterly fee income of Rs 100 crore from subsidiaries in insurance and mutual funds. The YONO loan book for the past two fiscals has been Rs. 21,000 crore each.
Data privacy is paramount
"As fintechs amass sensitive data, maintaining data privacy and security becomes paramount," says T Rabi Sankar, Deputy Governor of RBI, in his address to Global Fintech Fest 2023. He added that agility of new age fintech firms can challenge existing regulatory models.
The Deputy Governor suggested a collaborative function by fintech firms, banks, RBI and SROs to ensure progress for all. "Perhaps the sweet spot lies in fintechs acting as both competitors and collaborators."
The event has its backing from several government ministries and departments including the Ministry of Electronics and Information Technology (MeitY), the Department of Economic Affairs (DEA), Ministry of Finance, the Reserve Bank of India (RBI), and the International Financial Services Centres Authority (IFSCA).
The event is organised by the Payments Council of India (PCI), Fintech Convergence Council (FCC), and National Payments Corporation of India (NPCI).
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