IBM sees big business in banks’ rural push
The pro-rural, semi-urban push being planned and executed by banks in India is expected to increase technology spends, according to IBM officials.
By TNN |
BANGALORE: The pro-rural, semi-urban push being planned and executed by banks in India is expected to increase technology spends, according to IBM officials.
Speaking to ET, Mr John Lutz, GM, Global Financial Services, IBM said: “The rural push would be sustained through a combination of technology and human interference. A single route (be it automation or human) would not be able to address this market opportunity.”
This comes at a time when some interesting initiatives are being planned for the domestic banking arena. While on the one hand, RBI has espoused the cause for "financial inclusion" in the recent credit policy announcement, banks are keen to tap this segment not merely to derive the first-mover advantage, but also look at the business potential it offers.
Mr Lutz said, the nearest global example of the kind of rural push that banks are attempting in India is in Brazil, which has over 60m poor.
He said that while banks were investing big into technology, the concept of "branch banking" was not becoming alien. "There is a renewed vigour in terms of branch banking be it Tokyo or New York,"
Mr Lutz added. India has over 65,000 branches and branch expansion is witnessing robust growth year on year. IBM, Mr Lutz said, was also betting on the growth in banking automation thanks to focus of financial institutions on issues like regulatory compliance.
Speaking to ET, Mr John Lutz, GM, Global Financial Services, IBM said: “The rural push would be sustained through a combination of technology and human interference. A single route (be it automation or human) would not be able to address this market opportunity.”
This comes at a time when some interesting initiatives are being planned for the domestic banking arena. While on the one hand, RBI has espoused the cause for "financial inclusion" in the recent credit policy announcement, banks are keen to tap this segment not merely to derive the first-mover advantage, but also look at the business potential it offers.
Mr Lutz said, the nearest global example of the kind of rural push that banks are attempting in India is in Brazil, which has over 60m poor.
He said that while banks were investing big into technology, the concept of "branch banking" was not becoming alien. "There is a renewed vigour in terms of branch banking be it Tokyo or New York,"
Mr Lutz added. India has over 65,000 branches and branch expansion is witnessing robust growth year on year. IBM, Mr Lutz said, was also betting on the growth in banking automation thanks to focus of financial institutions on issues like regulatory compliance.
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