Banking perspective: New Realities - Innovate or Perish
Banking and Innovation in the same sentence seems like an oxymoron! Well not anymore! A lot happening in the financial sector, vastly driven by technological innovation, that will leave the banks like dinosaurs (i.e. extinct) if they don’t innovate!
- Increased digital disruption led by technological innovation leading to new market participants in traditional banking domain;
- Onslaught of regulations requiring maintenance of higher capital and liquidity buffers;
- Increased compliance requirements Customer acquisition, remittance and sanctions monitoring; Balkanisation of operations making the business model increasingly expensive;
All of the above has made the operating costs higher while interest margins have shrunk causing considerable strain on profitability.These factors now make innovation all the more imperative and a key tool for restoring/sustaining profitability and returns.
How can Finance Innovate? Finance and innovation in the same sentence can sound scandalous, but we are in times where this is fundamental and perhaps inevitable. In fact, the current scenario puts finance at the forefront of driving innovation!
Mr. Sridhar Aiyangar is currently the Financial Controller at Standard Chartered Bank and is based in London.
Prior to this he was the Managing Director, Structured Solutions, Financial Markets, Mr. Aiyangar covering Financial Institutions Group (FIG). He has held various leadership roles in disciplines covering Capital Management, Portfolio Risk management, Consumer Banking and Finance in many markets. He has worked in several leading organisations such as ANZ Grindlays Bank and Ernst & Young before joining Standard Chartered Bank with over 25 years of experience.
He is a Chartered Accountant and an Associate of the Chartered Institute of Bankers, London.