Tech Companies may have a strong reason to bolster their marketing as well as development teams as the Banking Sector is about to witness a flurry of activity.
The Reserve Bank of India (RBI), the country’s apex authority regarding the Banking Sector has opened up the gates to the lucrative sector for a brief period. As many as 26 applicants, from brokerage houses and Non-Banking Financial Institutions (NBFIs) to industrial houses and micro-finance firms have applied to launch comprehensive banking operations within the country.
Why are Tech Companies enthused?
Companies who eventually win licenses would undoubtedly want to accelerate the development & deployment of their banks & this is where tech companies come in, explained Milan Sheth, Sector Leader, Ernst & Young Technology, “It is an opportunity for a whole lot of players. You have the product companies and the outsourcing companies which would look to position themselves for this. And any organization that gets a license will want to accelerate the roll-out, so incumbents will have an advantage”
Some of the interesting applicants that stand a strong chance of emerging successful include India Post, L&T, Edelweiss & Muthoot Finance, besides industry heavy weights, Tatas, Birlas, Reliance & others. While a few of these companies have a full-fledged in house software development & back-end process handling teams, others have a strong background in the financial markets. Hence it will be exciting to watch the battle for customer acquisition by innovative financial product inclusion.
Industry trends & movements research company Gartner estimates the Indian Financial Markets will spend beyond Rs. 42,000 Crores on Tech & IT related products. Additionally, judging by the rapid advancement in the mobile banking front, banks & other financial institutes are already spending liberally on mobile app development & their creators. Since Aadhar is any ways going to be instrumental in leveraging the unbanked population do you think such a development is beneficial to all?
Image Courtesy | centralchronicle