Banking as a sector in India has seen tremendous growth in the last 25 years. Ever since the LPG policies were implemented into the Indian economy, the growth that the Indian banking sector has seen is unprecedented. It was not merely a policy that made the Indian economy vibrant but also allowed innovation with regard to the Indian banking sector.
Prior to the 1990s, privatization of the Indian banks wasn’t a reality. The culture of the Indian banks was rather traditional and the speed of work was very slow as opposed to the world standards. The lack of technological usage was a major concern for this sad state of the banking sector.
However, ever since the 1990s and with the allowing of private banks to enter the Indian banking sector, we’ve seen tremendous growth. As it stands today, the banking industry is not satisfied with where it stands since they’re constantly looking at new and innovative ways to improve. This is an impeccable sign from the customer’s stand-point.
The recent YesBank Datathon is a great example of how the 4th largest bank in India is seeing AI as a powerful technological tool to enable them to serve their customers better. It’s the usage of technology that is beyond doubt going to dictate the future of banking, not just in India but also throughout the world.
AI and machine learning will in future allow banks to see solutions to problems like never before. Technology as a part of the banking sector has already changed the picture so much. We’ve seen how prior to the introduction of e-banking, the wastage of paper was massive in this industry. Plus the additional load of the banking customers to go all the way to the bank for every small work was troubling.
Ever since the emergence of technology and it’s merging with banking, we’ve seen that 1) the banking industry has become far more paperless than ever before and 2) the convenience part of customers is at an all-time high. Today, you can transact, buy policy’s and keep track of investments - all from the comfort of your home.
The YesBank Datathon was one such event wherein the potential future of banking was on display for all to see. With the mixing of banking with technology, this sector can truly revolutionize and improve upon the current lacunas.
YesBank datathon was an event that lasted over 100 days, with a conclusion on the 23rd of December. The main objective of the event was to find the top 20 solutions that will enable better working of the YesBank.
It’s not just YesBank but various companies in the banking sector are now organizing datathon’s because they realize that the future of banking lies in the hands of technology. Building solutions that are data-driven and backed by technology are the main objective of these events.
Datathon, unlike a hackathon, doesn’t last just a couple of days. Instead, datathon’s last up to a few months - with the participants required to come up with solutions to existing day to day operational problems of the banks. It’s just an effective way of talent management - which allows banks to accelerate on growth and fight discrepancies in the daily operations.
Most of these banks have their own data sciences teams but the need to conduct these datathon’s arises since the customer base for top Indian banks is in millions and therefore external help allows for creative juices to flow and unique ideas to step in. The inside data sciences team’s along with the ideas suggested in these datathon’s by top teams makes for a perfect match.
It is therefore quite fitting to say that the future of the banking sector looks very bright. India’s top banks realize as to how banking motivated by technology is the only way to grow in the coming future. Machine learning and AI are not just technological words but when put into action; they deliver results that truly make a bank stand out from its competitors.
The future of the banking sector is really a race between banks - as to which bank adapts to technology the most rapidly and efficiently.