Future of finserv industry is collaboration between banks and new-age players, says SBI Chairman

For credit availability to micro, small and medium enterprises (MSME), Setty said that the digitization and formalization in the industry has helped lenders to devise models to reach out to MSME getting the formal credit.

The financial services industry could see a transformation in the future, with collaboration between conventional players like banks and new-age players, State Bank of India’s (SBI) Chairman CS Setty said.

“The new-age players can collaborate with the conventional players like universal banks is going to be transformative,” Setty said at the Confederation of Indian Industry’s (CII) Finance Summit on September 2 in Mumbai.

In addition, the chairman of the country’s largest bank highlighted that ecosystems in the financial services space like account aggregator (AA) and other similar frameworks can shape the future of the industry. “AA and many frameworks like them and how do we combine all of them in a holistic manner and in a self-regulatory manner when regulations are not there will sum up the future of the finserv sector,” Setty added.

For credit availability to micro, small and medium enterprises (MSME), Setty said that digitisation and formalisation in the industry has helped lenders devise models to reach out to MSMEs getting formal credit.

Setty also said that there is a need for creation of specialisation within a universal bank. “Advancement of skills in risk management in cybersecurity and MSME credit functioning is needed in the financial sector,” he said.