Transforming the banking landscape for the digital age, KRC Murty, Senior Vice President and Head

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Mumbai: Data analytics empowers banks to make data-driven decisions and offer tailored financial products. Advanced technologies like Artificial Intelligence, Blockchain, and Data Analytics are reshaping the way financial services are delivered. A tech-led future in the banking landscape bears a transformative era marked by innovative digital solutions.

During the 2nd BFSI Finnovation Conclave, hosted by APAC News Network, held in Mumbai, KRC Murty, the then Senior Vice President and Head – RTB, Kotak Mahindra Bank, was amongst the panel of experts speaking on the topic of ‘Dissecting the Tech-Led Future of the Banking Landscape’. He gave a detailed vision of how banks are adapting to the ever-evolving digital transformation.

Improving productivity of banks and enhancing customer service through digitisation

Murthy gives the example of Video KYC to justify how digitisation has enhanced customer service while improving a bank’s productivity. Video KYC, or Video Know Your Customer, is a method used by businesses and financial institutions to remotely verify the identity of their customers through secure video calls.

This process is essential for adhering to anti-money laundering (AML) and counter-terrorism financing (CTF) regulations, as it helps prevent fraud and illicit activities by confirming the true identity of individuals or entities.

During a video KYC process, a customer initiates the verification by connecting with a representative through a video call. The representative reviews the customer’s identity documents in real-time, performs biometric checks, and records the interaction for compliance purposes. Video KYC offers convenience and accessibility for customers, as they can complete the verification from their own location, reducing the need for in-person visits.

Upon being asked how digitisation has enhanced customer service, he said, “One has to think about how much control can be given to the end user, to let them do things by themselves. They don’t need to approach the bank or depend on a call centre, they just have to download an app and everything should be done.”

Ensuring security of customer-facing applications

“We don’t allow any application or new piece of software to get onto the bank’s network without thoroughly passing through our entire IT security checkpoints,” Murty said when asked about ensuring the security of customer-facing applications.

Trust is the cornerstone of any successful financial institution, and in an era marked by cyber threats and data breaches, it has taken on even greater significance. Banks build trust by implementing robust cybersecurity measures, safeguarding customer data, and ensuring the reliability of their online and mobile banking platforms.

Transparency in communication, fair and ethical business practices, and responsive customer service are also vital components of trust-building. “Banks are all about trust,” Murty said.

Introduction of Fintech to banks during digital transformation

Fintech companies and traditional banks have a complex and evolving relationship in the financial services industry. Fintech refers to innovative companies that leverage technology to offer a wide range of financial services, including payments, lending, investment, and insurance.

Banks initially had a hard time trusting Fintech companies as the former offered faster and more user-friendly services, creating competition for banks in areas like payments and lending. Now banks have started to embrace digital transformation to remain in competition, by investing in technology, collaborating with fintech companies to enhance their services, and navigating regulatory challenges more effectively.

This dynamic has also led to collaborations where fintech companies are now providing technology solutions to banks.

AI and ML in Omni-channel delivery model

The omni-channel delivery model in banks refers to a holistic approach to providing seamless and consistent customer experiences across multiple channels and touchpoints. This model acknowledges that customers interact with their bank through various means, including in-branch visits, online and mobile banking, phone calls, chat, and more.

AI and ML technologies play a critical role in optimising the omni-channel delivery model in banks. They enable the analysis of customer data across various channels to provide personalised services and predict customer needs. AI-powered chatbots and virtual assistants ensure 24/7 support and seamless interactions, while AI-driven security measures enhance fraud detection.