When it comes to using technology in financial services, there are two black boxes according to Uday Kotak — management of risk, and security. This is why the threat of cyber theft and disruption of traditional banking models by competitors are what Kotak is most concerned about. During a conversation with G. Padmanabhan, the non-executive chairperson of Bank of India, on Thursday, Kotak, the executive vice chairperson and managing director of Kotak Mahindra Bank, said that risk management, however, will differentiate banking from other digital disruptions in the financial services sector. “In addition to data and analytics, you will have to figure out how judgement becomes a core part of the model. That is the most difficult part to put in place,” Kotak said. Digital world can compete with banks and even out the profit pools that banks have historically enjoyed, he said. “Risk management is at the core of banking. … Recklessness is a problem with the financial industry that has been seen worldwide and is essentially a measurement of risk.” Models, for instance, did not take into account an incident like COVID-19. “AI-based lending has happened in the Indian consumer industry unsecured,” Kotak said. 'Happy to collaborate with fintech, but to an extent,' says Kotak Padmanabhan pointed out that for the regulator, a key differentiator between banks and fintech is that for fintech, customer convenience is critical. To balance between risk and customer convenience, Kotak said, “We are very happy to collaborate, partner on an ongoing basis, and…
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
News
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
Advert
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
News
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...
News
Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...