The panel discussion on ‘Future of Banking: Growth, Governance, and Digital Transformation’ at the Dhanam BFSI Summit highlighted the evolving trends within India's banking sector.
The conversation focused on the necessity for traditional banks to adopt innovative strategies, positioning the banking sector as a key driver of the country’s economic growth.
Salee S. Nair, MD and CEO of Tamil Nadu Mercantile Bank, who participated in the panel discussion, emphasised the critical role of innovation, particularly fintech solutions, in driving growth in banking. He highlighted that fintech can significantly reduce the cost of interactions between banks and customers. According to Nair, one of the remarkable advancements brought by UPI is its ability to streamline transactions, enabling merchants to conduct more business in less time. He pointed out that UPI processes transactions worth ₹24 lakh crore every month.
Vimala Vijaya Bhaskar, chairperson of Kerala Gramin Bank, highlighted the financial challenges faced by the agricultural sector, noting that 7.4 crore tonnes of agricultural produce are wasted each year due to inadequate financial facilities. She stressed that if responsible steps were taken to prevent this wastage, it could significantly contribute to the country’s economic growth and GDP expansion.
She also emphasised the banking sector's growing focus on the MSME sector, describing it as a key catalyst for economic development. she pointed out that when banks become more active in managing financial resources, the country prospers, and this, in turn, leads to improvements in culture, lifestyle, and the standard of living for the people.
K. Paul Thomas, managing director and CEO of ESAF Small Finance Bank, said that the next phase of growth for banks will be driven by the low and middle-income segments of the country. In line with this vision, ESAF Small Finance Bank is placing greater focus on rural areas. Four new branches have been established in locations such as the tribal area of Attappady in Kerala's Wayanad district.
