The banking, financial services and insurance (BFSI) sector is at the forefront of digital transformation. The proliferation of digital and mobile banking, rising customer demand for hyper-personalised services, rapid technological advancements and strict data compliance requirements have driven this shift. Industry leaders share their views on the key technological trends, digital initiatives, emergence of digital currencies and future outlook…
What is the current state of digital transformation in the Indian BFSI sector? What are the key trends shaping this transformation?
The government has been actively promoting digital transformation through initiatives such as Digital India, Aadhaar, UPI, GST, and data protection. The Indian BFSI sector is actively engaged in digital transformation. Key areas of focus include digital banking expansion, fintech integration, AI and data analytics adoption for personalised services, intensified cybersecurity measures, and blockchain experimentation. Regulatory compliance, financial inclusion efforts, enhanced customer experiences and open banking initiatives are prominent trends. Green finance and sustainability have also gained momentum.
What are the use cases of new-age technologies such as AI/ML, blockchain and cloud in BFSI? What factors are driving the adoption of these solutions?
New-age technologies such as AI/ML, blockchain, and cloud computing are revolutionising the BFSI sector. AI/ML enhance credit scoring, fraud detection, and customer service. Blockchain ensures secure identity verification and streamlined cross-border payments. Cloud computing offers cost-effective data storage and disaster recovery. Factors driving the adoption of these technologies include cost savings, regulatory compliance, competition and meeting customer expectations for seamless digital experiences.
What are the digital banking and tech initiatives taken by you? How has it benefitted your business and customers?
Nuvama places a strong emphasis on continuous IT advancements. Our focus has been on:
- Digital and cloud adoption: To improve client and advisory experience.
- Automation: For faster and seamless transactions and settlement processing.
- Data management: To protect clients against fraud and for risk control.
- Enterprise robustness: To ensure error-free delivery at scale.
- Experimentation with AI/ML: For portfolio reporting, gathering client insights and identifying algorithms to match products to client needs.
“The potential introduction of the eRupee could transform the financial sector by promoting financial inclusion, reducing transaction costs, and enhancing security.” Riyaz Ladiwala
What are the cybersecurity trends in the sector? How do you ensure data security amid rapid digitalisation?
Cybersecurity trends in the BFSI sector encompass advanced threat detection, multi-factor authentication (MFA), cloud security, information sharing and compliance with regulations. Ransomware defence, supply chain security, and employee training are critical focuses.
The Nuvama Group, amid rapid digitalisation, ensures data security through comprehensive measures. These include robust encryption, advanced firewalls, MFA, and regular employee training to reduce risks. Data loss prevention tools, incident response plans, and security audits further bolster security. Additionally, third-party risk management and compliance with regulatory standards are vital components. Secure development practices and emerging technologies such as AI have been utilised to enhance the security posture. Continuous monitoring and cloud security measures safeguard data in real time. Nuvama maintains a strong governance framework and user authentication methods to sustain a culture of security, adapting to evolving threats in the dynamic digital landscape.
How is eRupee expected to transform India’s financial sector? What other technology trends will emerge in the future?
The introduction of eRupee in India could transform the financial sector by promoting financial inclusion, reducing transaction costs and enhancing security. It could also streamline monetary policy implementation and reduce dependence on physical cash. Future technology trends may include broader blockchain applications, AI-driven personalisation, growth in decentralised finance, green finance initiatives, biometric authentication, and evolving regulatory frameworks. These trends will be driven by technological advancements and market dynamics, shaping the future of India’s financial landscape.