The future of FinServ is likely to be driven by the integration of technology and data, with an increased focus on personalization, efficiency, and convenience.
The five areas focus Basic Banking, Investment, Financing, Wholesale should now be encapsulated in BAAS - offer opportunities for banks to transform and stay competitive in the ever-evolving financial landscape.
However, it is important to note that the future of financial institutions is uncertain, and regulatory, technological, geopolitical, and other factors could greatly displace its development.
Banking as a Service (BaaS) refers to the provision of banking services and technology solutions to financial institutions, businesses, and other organizations. The aim of BaaS is to allow these entities to offer their customers a full range of financial services, such as payments, savings, loans, and investments, without having to invest. A platform that includes APIs and other tools that allow their clients to integrate functionality into their existing systems and processes. Reduced costs, increased speed and efficiency, and the ability to offer a more comprehensive range of financial services.
The banking industry is facing a pivotal moment, with uncertainty surrounding future profit growth. Regulations and growing competition remain a concern, however, the biggest challenge comes from a global trend: disruptive new players from diverse industries that have adopted innovative cross-industry platform models, much like the success seen in companies such as Amazon, Google, Microsoft, PayPal, and Spotify. These new entrants bring with them a more efficient economic model, posing a significant threat to the traditional banking sector.
The era of the universal bank model is coming to an end and investors are increasingly recognizing the value of specialization over the traditional one-size-fits-all approach. The future of banking lies in specialized platforms.
Financial services in the current form haven’t evolved their products in a way that matches the tech-driven pace of change in other industries. Products such as checking accounts, loans, and even corporate advisory can seem undifferentiated.
To compete, most banks will have to embrace cross-industrial platforms. These new platforms dismantle the barriers between traditional industries, reshaping customer behavior and turning formerly linear value chains into ecosystems that fulfill customer needs in new ways.
Because of cross-industrial “platformization,” banks must now compete with any organization that has the capacity and desire to offer any kind of financial services.
Tech advances have eliminated size as an advantage in providing excellent services, winning customer loyalty, aggregating and analyzing data, and building networks of capital. Roughly 200 digital banks have launched since 2015, as have new brokerages such as Robinhood, wealth-advisory services such as Betterment, alternate investment banking paths such as special-purpose acquisition companies, payment platforms, and start-up capital platforms such as SeedInvest Technology. High levels of personalization, zero friction, and a commitment to social and environmental impact.
Tech and Business convergence can offer risk management and strategic planning services, as well as sophisticated portfolio construction, and customized investment solutions. The goal is to provide exceptional value to clients and help them achieve their financial goals, whether that be growth, diversification, or risk mitigation. Innovative lending solutions specifically designed for small businesses, the small-business lender will make it easier for entrepreneurs to access capital and grow their businesses.
From Everyday banking to create a banking experience that is not a burden or a necessary obligation, but instead is easy and even enjoyable.
Financial services now should encompasses a variety of e-commerce services, such as loyalty programs, discounts, advertising, and peer-to-peer marketplaces. A single access point for a wide range of consumer goods, electronics, home-cleaning services, movie tickets, and more, all connected to bank accounts or specialized solutions embedded into specific customer journeys.
Integrating payments, cash flow financing, accounting, taxes, and more, allowing businesses to focus on their core activities by automating many of the basic operations.
As of September 2022, there were at least 274 fintech companies with a unicorn valuation of more than $1 billion, up from just 25 in 2017. Collectively, they have a market value of more than $1 trillion.
Adopting cross-industry platforms that break down the barriers between traditional industries, altering customer behavior and transforming linear value chains into ecosystems that meet customer needs in innovative ways. This process has already reached a tipping point in industries like healthcare, media, music, and retail, where a diverse range of players are connected through platforms. The rise of cross-industry platformization means that FIs must now compete with any organization that has the ability and desire to offer financial services.
This business model is gaining popularity as more companies look to enter the financial services space and offer new and innovative financial products to their customers.
This could include options such as online payments, mobile payments, and point-of-sale systems, as well as other value-added services such as fraud protection, data analytics, and customer insights. In this arena, success will depend on the ability to create innovative solutions, streamline processes, and offer excellent customer experiences, while also navigating the complex regulatory landscape of financial services. Wide range of financial services for corporations and institutions.
Celebrating Excellence in Finserv
The debut edition of FinServ Disruptor Awards will recognize enterprises within the Financial Services sector driving innovation and impact through banking technology implementations. The award is for the most disruptive Fintech that has not only solved challenges and created opportunities but also improved user experience and changed the way business gets conducted.
The award categories are:
Best Finserv Disruptor
Important Timelines:
Rajeev Ahuja is the Executive Director of RBL Bank and has over 30 years of experience in the financial services industry.
He has been an integral part of the organisation's transformation journey and is responsible for building the overall strategy of the Bank while managing the Retail Banking and Financial Inclusion businesses of the Bank. He is also responsible for the Bank's capital raising, development of new businesses, partnerships and investor relations functions.
In the course of his career, Rajeev has held key positions in investment banking and financial markets. Prior to joining RBL Bank, he was heading the investor sales business (South Asia) with Citigroup, India. He also had a long stint in the capital markets and investment banking divisions of Deutsche Bank in Asia.
Rajeev holds a Master's in Business Administration from IIM, Ahmedabad and a Bachelor's degree in Commerce from the University of Delhi. He attended St. Xavier's School in New Delhi
As the Managing Director and Chief Executive Officer of Fino Payments Bank Rishi Gupta led the bank to profitability in FY19-20 within 3 years of starting operations. By the end of Q3FY23, the bank registered twelve consecutive quarters of profit, reiterating the robustness of the business model.
In November 2021, under his stewardship, Fino became the first payments bank to get listed on the Indian stock exchanges.
Rishi’s vision to make the bank a preferred choice of customers enables Fino to continue making invaluable contribution to the national agenda of financial inclusion and universal banking access.
Rishi is currently associated with one of the premier industry associations in the country, ASSOCHAM as the Co-Chairman of the National Council on Banking and Financial Services.
In his role as Head-E-Commerce, Ketan is in charge of setting up a dedicated vertical for the fast growing e-commerce business out of Corporate Banking Vertical.
Ketan started his career in 2000 with Kotak. He was part of Kotak Securities for 2 years as Head, Gujarat Region, India for Online Trading. After 3 years with Kotak Securities he was transferred to Kotak Mahindra Bank in October 2003. He was part of the mortgages team and headed the western region.
Subsequently, in May 2008, he was transferred to Kotak Wealth Management, the Private Banking arm of Kotak Mahindra Bank Ltd., where he assumed the role as Team Head focusing on NRI Business.
In 2010, he moved to UK to set up the Private Banking Business for Kotak Group and was heading it till March 2015. He has moved across continents post that to expand the business. Ketan holds a Masters Degree in Management Studies from Mumbai University.
Mr. Rajesh Choudhary is the Chief Information Officer of CSB Bank. He’s spearheading the company’s technology transformation and is tasked with enhancing the digital capabilities of the Bank.
Mr. Choudhary has almost three decades of experience in technology leadership roles. He possesses global work exposure that spans across Europe, UK, UAE, Singapore and India.
His work experience lies majorly in Strategy, IT Infrastructure, Applications, Technology Risks, Finance, People, Vendors, Outsourcing, Off-shoring and Governance in various roles as IT Head and Regional/Country Head.
Prior to joining CSB Bank, he was associated with Barclays Bank, RBS, ICICI Bank and Bank of America, amongst others.
TVS Capital Funds or TCF is one of the leading growth PE funds in India. Since its beginning in 2007, TVS Capital has been anchored on the philosophy of partnering “next-gen” entrepreneurs, their building scalable and successful businesses.
TVS Capital Funds is dedicated to backing businesses that align with India’s growth story. The platform focusses on portfolio value creation by bringing in capability through its vast network of industry leaders, advisors and partners.
TCF was founded by Gopal Srinivasan, a third-generation entrepreneur of the TVS Family with a vision to provide financial and capability capital to Empower India’s NextGen entrepreneurs.
The TCF team consists of an experienced investment team with deep sectoral knowledge, supported by an eclectic ecosystem that works with them in supporting entrepreneurs in building businesses. The team is currently actively investing from TCF’s 3rd fund, TVS Shriram Growth Fund 3, which has commitments of ~?1,900 crore.
TVS Shriram Growth Fund 3 is backed by key domestic financial institutions, family offices and high net worth individuals, many of whom have been associated with TCF since inception. It is noteworthy to mention that entire gains generated through our investments from the Fund stay in India.
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