Mobile banking will witness explosive growth : Justice Venkatachalaiah

Mobile banking will witness explosive growth : Justice Venkatachalaiah

Mangalore Today News Network

Mangalore, Feb 19, 2013  :  “We can expect dramatic changes  in Banking industry in a digitally dominated world. Bankers must evolve themselves into economic , technological and social philosophers to be able to foresee and foretell the future,” said Justice MN Venkatachalaiah, former chief justice of the Supreme Court of India.

 

 

 

Delivering the Karnataka Bank Founder’s Day address on “Banking in a Fast Changing World” here on February 18, Monday, he said “Mobile Banking will witness explosive growth and change the entire Banking scenario.” He further observed that “Of the various trends and technologies in the emerging markets banking landscape, mobile banking is unarguably the front-runner.”  Due to their  reach, ease and capabilities, mobile devices have outperformed the ‘e’ space to achieve a penetration of more than 50% even in countries with per capita GDP as low as $5000, Justice Venkatachalaiah pointed out and  added  75% of global mobile subscribers are located in emerging markets,”he said.

There will be tremendous pressure on staff-talent and there will be a great demand on out-sourcing of services. Subsidiary and Auxillary and supportive institutions will emerge in a big way, particularly in the area of technological services,” Justice Venkatachalaiah observed.

 On the banking scenario of India, he said there is great scope for growth as an estimated 83 per cent of population  had no access to banks. “Though estimates state that there  are 310 million Saving Bank accounts in India, the actual number is estimated at 200 million taking into consideration of the possibility of one person having multiple accounts,” he added.

“The world  is changing at a bewildering pace. It is no longer divided by ideology,  it is divided by technology,’ Justice Venkatachalaiah made a keen observation. Referring to the   IBM Study “ Banking 2015:

Defining the Future of  Banking,”  he said the study predicts a growth rate of 7.6 % in Asia-Pacific region. It also identifies some key trends which will determine success, such as a new brand of tech savvy users of financial services; market consolidation of bigger brands; emergence of community banks, high transparency and sharply focused technologies; a customer centric market dominated by global mega banks and highly specialized financial service providers, fierce competition and ever  increasing technological pressure  driving great changes in the nature and talent of work force.

 “ Innovations in products, processes , relationships  and business models will be the primary path to sustainable growth,” Justice Venkatachalaiah said quoting the IBM  study.

Having a word of praise for the progress achieved by Karnataka Bank, one of the premier private sector banks of the nation, Justice Venkatachalaiah said  “Karnataka Bank  has a proud record of dedicated service of  ninety years since its inception in 1924. It has grown from strength to strength in all areas of Banking.” He also remembered the founders of the branch and the dedicated professionals who have helped the bank progress.

P Jayaram Bhat, Managing Director and CEO of Karnataka Bank, Ananthakrishna, ex-officio Chairman and senior officials were present.