Pioneering banking technology: Paving the path to a $5 trillion economy

As India's economy emerges as a global trade powerhouse and a preferred partner for nations worldwide, a momentous transformation awaits. The “Banking Transformation Summit” takes center stage, bringing together major stakeholders from India's banking ecosystem to harness the potential of a rapidly changing macroeconomic landscape and showcase India's prowess. With the theme "Roadmap for India's Five Trillion Dollar Economy and Beyond," the summit aligns perfectly with the government's vision of achieving this milestone by FY 27.

To offer a glimpse of the insights that await, the curtain-raiser episode features an exclusive conversation with Mr. Vishnu R Dusad, Managing Director and Co-founder of Nucleus Software Exports Ltd., a pioneering entity in intellectual property within the financial technology domain for over three decades. As a director since the inception of the company, Mr. Dusad's expertise spans software development, strategic alliances, business development, and strategic planning, attributing to his success in driving the lending and transaction banking landscape in India and across the globe.

Excerpts from the conversation with Mr. Vishnu R Dusad led by Ashmit Kumar - Anchor and Deputy Editor at CNBC-TV18

Q1: What to expect at the Banking Transformation Summit and about technological advancements in banking?

Ans: The Banking Transformation Summit promises profound insights into technology's pivotal role in shaping India's banking landscape. With a rich history of pioneering financial technology for over three decades, we have been at the forefront of revolutionizing banking solutions through cutting-edge technology.

Key areas where our technological advancements shine include hosting 40 lakh crores worth of retail assets on our robust digital lending platform. This involves making financial services easy and accessible via technology where individuals and entities can avail loans for various purposes like automobiles, mortgages, education, personal needs, and business needs fostering economic activities and growth. Our mission extends further towards financial inclusion to empower individuals at the grassroots by using technology to address their credit challenges.

The audiences can look forward to deep insights into how Indian Banking Industry will not only lead to the $5 trillion target but also show the way to the world how Indian Banking Technology and governance can help the world transform itself.

Q2: What are the challenges you aim to address through technology deployment?

Ans: We propose to address the unique challenges, particularly in ensuring financial inclusivity and access to credit for underserved individuals through technology deployment.

A major concern at the bottom of the pyramid is the prevalence of obnoxiously high interest rates for those who are unbanked and in remote, burdening borrowers with crippling debt. High interest rates, reaching 3650% per annum, burden borrowers, maybe for life, sometimes generations. We aim to ensure financial inclusivity, offering access to mainstream credit for all. Our goal is equitable lending via technology that has the potential to bring down the cost of lending considerably thus making a 100Rs. loan possible and profitable.

Our vision extends beyond urban areas, focusing on developing solutions that cater to diverse needs, including micro-enterprises. By empowering all segments of society with accessible and affordable financial services, we aim to drive India's journey towards a thriving five trillion-dollar economy and beyond.

Q3: How is AI and ML shaping the future of banking?

Ans: Over the past few years, technology, particularly Artificial Intelligence (AI) and Machine Learning (ML), has played a pivotal role in reshaping the banking landscape. With AI's ability to analyze vast amounts of data and identify patterns without human intervention, it has unlocked new possibilities for the industry.

At Nucleus Software, we have embraced AI, utilizing it to automate routine payments, enhance security by identifying anomalies, and improve overall efficiency. As we look ahead, AI and ML will continue to drive transformation in the banking sector. By streamlining processes, enhancing customer experiences, and fostering innovation, these technologies pave the way for India's journey towards a five trillion-dollar economy, making it a promising and achievable goal.

Q4: How does technology deployment in the banking sector impact customer care and personalized banking experiences?

Ans: With an impressive milestone of 10 billion monthly transactions, our digital ecosystem is providing our partners with invaluable data on customer behavior and merchant interactions. Harnessing these insights, our transaction banking platform, FinnAxia, combined with FinnOne Neo our lending platform revolutionizes customer care by tailoring credit options with personalized interest rates. Through mobile accessibility, this customer-centric approach reaches millions of individuals and micro, small, and medium enterprises, transforming the banking experience.

Q5: How do you ensure data security amidst rising concerns of financial fraud and cybercrime, especially when dealing with vast datasets containing sensitive customer information?

Ans: Data security is our topmost priority, forming the foundation of our operations. Safety is paramount in the airline industry and robust and secure systems are paramount for financial services industry. Our meticulously designed architecture ensures strict control over access to data and algorithms, limiting it to authorized personnel only. This stringent approach guarantees the complete protection of sensitive information.

We further prioritize continuous training for our teams, keeping them abreast of the latest security advancements and best practices. Heightened awareness and vigilance, coupled with industry-wide fortification, underscore our commitment to data security.

Q6: How is Nucleus Software capitalizing on the rise of fintech and digital banking in the banking sector?

Ans: In recent years, a symbiotic ecosystem has emerged, comprising fintech companies, financial services providers, and technology players like Nucleus Software. This collaboration has led to the adoption of niche fintech solutions by banks, facilitated by our technology. As a result, we deliver enhanced value to end customers through seamless integration of credit scoring and KYC solutions within our platform. We have developed an incredible number of 520+ APIs that help seamlessly connect to the ever-evolving financial ecosystem and hence this evolving ecosystem holds immense promise for the future.

Q7: What does India's G20 Presidency mean for the banking and financial sector?

Ans: Hosting the G20 presidency is a moment of great pride for India. It offers a unique opportunity for our banking and financial services sector to showcase its advancements to the world. With innovations like FinnOne NeoTM digital lending platform enabling 10-second loans, we are already ahead of many economies. The G20 platform allows us to demonstrate our cutting-edge solutions globally, leading to positive responses from countries like France and UAE, who are keen to adopt Indian innovations in domain of retail payments. This global stage enables us to foster collaboration, build consensus, and gain further recognition for India's dynamic banking ecosystem.

To get insights into the future of banking, technological advancements, data security, and more, watch the full interview. Stay tuned for the summit, scheduled for August 23rd in Mumbai, which promises to explore the immense opportunities ahead and showcase India's potential on the global stage.

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