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Banking & Bancassurance

McKinsey Report: Asia-Pacific digital banking accelerating, led by emerging markets

McKinsey concluded that, “To deliver on this report’s calls to action, banks need to make fundamental changes in how they operate. They also need to build the capabilities required for an AI-powered digital-first business model, including a new sales and service model, modern operations and technology, and an agile operating model. Any bank that intends to remain relevant and thrive must become an innovation leader.” 

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Need to mainstream green finance: RBI Dy governor

“As the risks and opportunities and financial impact arising from climate change vary across jurisdictions, this poses unique considerations for emerging economies like India.The challenge before us is to mainstream green finance and think of ways to incorporate the environmental impact into commercial lending decisions while simultaneously balancing the needs of credit expansion, economic growth and social development,” Rao said.

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Financial services beware, outsiders are cracking the code

Global brands from Mercedes and Amazon to IKEA and Walmart are cutting out the traditional financial middleman and plugging in software from tech startups to offer customers everything from banking and credit to insurance.
“Embedded financial services takes the cross-sell concept to new heights. It’s predicated on a deep software-based ongoing data relationship with the consumer and business,” said Matt Harris, a partner at investor Bain Capital Ventures.

“That is why this revolution is so important,” he said. “It means that all the good risk is going to go to these embedded companies that know so much about their customers and what is left over will go to banks and insurance companies.”

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Govt guarantee of Rs 30,600 cr to NARCL for acquiring stressed assets: FM

”It will incentivise quicker action on resolving stressed assets thereby helping in better value realization. India Debt Resolution Company Limited (IDRCL) will engage market expertise for value enhancement. This approach will also permit freeing up of personnel in banks to focus on increasing business and credit growth,” Finance Minister Nirmala Sitharaman said.

As the holders of these stressed assets and SRs, banks will receive the gains and the guarantee will also enhance liquidity of SRs as such these instruments are tradable, she added.

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