Shiv Kumar Bhasin, Chief Technology and Operations Officer at National Stock Exchange (NSE), has been a veteran in carrying out digital transformation in several big ticket organizations. He was formerly the global CTO for State Bank of India. He played a big role in digital transformation at SBI and was responsible for incorporating cutting-edge modern technologies such as blockchain, Internet of Things (IoT) and Artificial Intelligence (AI) into the operations. He also led SBI’s YONO, the first Digital Bank of India, initiative from the front. Today this platform has close to 20 million registered customers. dynamicCIO caught up with the industry veteran to know his thoughts on the 5 key areas that the BFSI sector needs to work on. According to him, the following will be the crucial areas for the sector to focus on:
1) Transforming Physical Assets to Digital Assets: With people converting assets into digital tokens, this is one of the leading trends in BFSI and should be focused on.
2) Converting Raw Data into Revenue Streams: There is an explosion in the amount of data being generated due to the emergence of new technologies. This data needs to be leveraged into digital insights from data lakes. Organisations will have to figure out how AI and ML can be leveraged to use this huge amount of data which is getting collected. How this raw data can be converted into revenue stream is one of the key drivers for many of the organisational heads.
3) Partner Effectively with Fintechs: The next leading area is to partner effectively with fintechs and startups in the capital market area. The challenge is how to provide them with a sandbox environment, where the ecosystem can create innovations and digital services and products.
4) Get Legacy out of the Window: Organisations need to move quickly to modern open stack architecture. That is the biggest agenda as far as digital transformation in the banking and financial sector is concerned.
5) Leverage Blockchain: New age technologies such as blockchain must be leveraged for several functions due to its immutability capability. It can be very useful in areas such as asset tracking, among others. Use blockchain for improving operational efficiency and bringing down costs.
“We have partnerships with fintechs to take the digital initiative forward. Moreover, we are making interactions totally digital and are converting our interfaces into a democratic form with open style APIs so that anyone and everyone can use them in a sandbox environment. We are working on these things and these digital efforts will continue at least for sometime,” says Bhasin.