What are the challenges ahead for the Banks? As the Indian Banking Sector is propelled forward to a higher orbit, banks would have to strive hard to remain relevant in the changed economic environment. How?

The challenges before banks is to make the best use of technology and innovations to bring down intermediation costs while protecting their bottom lines. Further Artificial Intelligence (AI), Machine Learning (ML) and Big Data are becoming central to financial services innovation. They can do help in fraud detection and in identifying better ways of monitoring use of funds by borrowers, track suspicious transactions etc. by processing large data base. One of the challenges for policy makers, especially in countries like India, is to ensure that new innovations in banking sectors serve the customer by reducing the cost of financial serves and enhancing the range and access to products in a manner that is safe. Advanced analytics and real time monitoring of emerging cyber security risks will be critical in detecting potential threats and enabling pre-emptive action. As the Indian banking sector is propelled forward to a higher orbit, banks would have to strive hard to remain relevant in the changed economic environment. These can be done by reviewing their business strategies, designing, products with the customers in mind and focussing an improving the efficiency of their services. The possibilities are enormous. There is need to seize of the issues and act in time.