“Partnership between banks and Financial technologies “It’s a good proposition that benefits everyone. Given the importance of data security and privacy, no core activity should be outsourced. The relationship is similar to that of the crocodile and the plover,” he said.
The big animal and the little bird share a mutually beneficial relationship. The plover picks small bits of meat from between the crocodile’s teeth. The reptile needs the bird to keep its mouth free of infections, while the plover needs the crocodile to get its food.
Mundra said that with regard to innovation and inclusion, an integrated network to leverage data is a challenge for bankers.
Banks need to promote inclusion, he said, adding that there is a huge data asymmetry between banks and customers.
He said banks’ risk management should start from the beginning and not be treated as the second or third line of defence.
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Banks are now functioning 24×7 thanks to digitisation, he said, adding that risk management should not be seen as a compliance necessity. The RBI had been warning banks about systemic risks emanating from digitisation.
Regarding digital currency, Mundra said he was not very optimistic about its use.
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