Impact of

Disruptive
Technologies
in Banking
industry
Amit Rawal
Nallasopara Branch
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We start off by quoting -Jay Samit

Disruptors don't have to discover something

new; they just have to find a practical use for
new discoveries.

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What is Disruptive Technology ?

Clayton Christensen coined this term

“Disruptive technology” in his book “The
Innovator's Dilemma”.

It uproots a current innovation or challenges

a known business practice to make a new
industry

Examples of disruptive technologies

include smart phones and e-commerce.
Disruptive Technologies have enhanced customers experience & transformed Digital Economy.

Disruptive
Technologies IN BANKING SECTOR

Internet Banking, Mobile Banking, Financial

Services, Expanded ATM capabilities, Payment
technologies and Busines Intelligence

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Online and mobile
banking

API(Application India is a huge market

Programming Interface)
Banking Customers here prefer
online banking using
smart phones.
▫ API can share
customer’s personal
information and
transactions history
securely. Financial services

▫ Using API banks can Fin tech startups like

paysense and Zest
offer the best deals
provide services ranging
to attract more from loans to wealth
customers. management and much
more.
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Payment technologies

India has adopted modern payment systems

like RTGS , NEFT and IMPS .
Robotics Process
Automation (RPA) Online Bill Pay is used extensively to pay
utilitiy bills and credit card payments.

RPA handles monotonous Automated clearing House make payments

and tedious tasks efficiently from home a/c to any external account on
without human intervention. same day.

It can perform over one

million banking transactions
per day

It can handle ATM query and

verify KYC of customer.
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Aritificial
Intelligence

Smart Digital wallets

with Apple and Paypal
have developed payment
gateways. This decreases
the dependence on cash.
Expanded ATM capabilities
AI analyzes huge volume
of data to ease lending Banks have begun setting up ATMs empowered
decisions. with biometric innovation.

It also helps in voice ATMs can perform functions like mobile

assisted banking and recharges, ticketing and bill payment along with
block chain payments. dispensing and accepting cash.
 651 Million
Online (Web & Mobile) clients India has (Till 2017)

1003 Million
Online(Web & Mobile) clients India will have (By 2022)

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Disruptive Technologies will continue to change banking sector through product innovations.

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Digital
Creation of Digital Ecosystem Ecosystem
 With the increasing competition from new entrants
and changing client demographics , banks are
making investments to drive innovation to retain
existing customers.

 Banks are assembling digital ecosystems, using

existing partners and new players for various
financial services, creating value digital
connections.
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Cloud
Cloud services – A cheaper alternative services
 Banks are moving their information to a hybrid cloud,
combining general aspects for customer information
with in-house privacy, for sensitive information.
 Investment in cloud technology is comparatively
lesser than upgrading the core banking system.
 Therefore banks are vigorously investing into cloud
services to develop full-fledged cloud management
platforms.
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IT security
IT security – A challenge framework

 In digital environment there is increasing risk of cyber

threats. Banks are facing challenge of data breaches
and hence strengthening their security and
authentication systems.

 Banks secure access to info by means of biometrics,

tokens and multilayered authentication without
haggling on client comfort.
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Management
Managing risk along with compliances and
 Banks are utilizing advanced analytics to mitigate Compliance
risks associated with fraud.

 To meet compliance, banks are adopting automation,

as manual processes are time consuming and
inclined to errors.

 Banks rely on data-driven insights for business

strategy and making crucial decisions.
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Business
Business Intelligence – A superb tool Intelligence

 Banks are using business intelligence (BI) and

analytics to improve their overall profitability, it also
increases transparency and control.

 Banks have minimized operating costs by reducing

the handling time of different activities and enhancing
channel utilization.
Disruptive Technologies are new and are changing the rules of business. To unlock its value
and make our banking business future proof we have to embrace the disruption early.

This is the best time for our bank to move up the value chain and sprint to the front of the
race.

I conclude my presentation with the hope that we will

Challenge the Challenger and Become the
Disruptor Ourselves
Thank You

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