Digital inclusion a big challenge for banks: Expert

Visakhapatnam: Over 56 per cent of people in the country do not have access to banking facilities and to reach this larger community with proper banking services is a major challenge to banking sector, said Indian Bank Executive Director M K Bhattacharya at GITAM University on Monday.

Delivering a lecture at GITAM Institute of Management, Bhattacharya mentioned that even in advanced economies, financial inclusion was a big problem, but if the banks succeed in this aspect that would give security to safe guard the banks.

The banking, insurance, capital markets are key players in financial sector and majority part of banking sector was experiencing with credit risk, market risk and operational risk, he said and added the recent issues happened in Indian banking sector are due to the negligence in operation risk areas.

He said digitalisation was only a supplement to the sector, but banks are equally concentrating on FinTech and Crypto currency to face the challenges. 

When compared to private sector, opportunities were more in public sector banks, he said and stressed on strengthening cyber security to ensure the customers do not lose confidence in the banking sector. 

He advised the students to study the challenges faced by banking sector. GITAM President Dr M V V S Murthi said that Indian financial system was sound, and the banks were playing keyrole in the system. He mentioned that the banks must reach poor with new services for financial inclusion.

GITAM Vice-Chancellor Prof MS Prasada Rao said that the university has introduced new programmes like FinTech and Blockchain Technologies to meet the current banking trends. GITAM Vice-President Prof M Gangadhara Rao, Pro Vice-Chancellor Prof K Sivaramakrishna, Registrar Prof M Potharaju, GITAM Institute of Management Principal Prof P Sheela, Indian Bank Zonal Manager KS Sudhakar, GITAM secretary BV Mohana Rao, Chief Accounts Officer KV Gupta and Treasurer BSSSN Raju were present.