Private sector banks in India will account for half of the country’s banking industry in the next 5 years, says Uday Kotak, executive vice chairman and managing director of Kotak Mahindra Bank. Speaking at an event to announce the bank’s vision for the Future of Finance in Mumbai, Kotak said on a delta basis, the entire growth in loans is happening as private sector banks are growing significantly. In the next five years, 70:30 ratio will move towards 50:50, he said adding with the broadening of the financial sector, there would be fewer public sector banks in future. Kotak later unveiled the bank’s vision for the Future of Finance in the presence of Nandan Nilekani. He said the bank’s digital-first organic growth strategy will be driven by its ABCD Charter and will be fueled by the deeper penetration of India Stack coupled with formalization of the Indian economy (GST) and financial savings (less-cash digital India).
He recalled how in March 2017, in just over three months of the RBI permitting the use of Aadhaar-based OTP authentication process for account opening, the bank launched its digital offering 811. Today, he said the total customer base of the bank, which stood at 8 million when 811 was launched, has grown rapidly to around 12 million and with a 2% share of India’s deposits, the bank already commands about 8% of India’s mobile transaction value. Building on 811, the ABCD Charter seeks to make banking a more accessible and rewarding experience for customers by integrating technology, design and customization across products and services, he said.
Kotak explained the ABCD Charter as
AI enriched App
Biometric enabled Branch
Context enhanced Customer Experience
Data empowered Design
Nandan Nilekani, founding chairman, Unique Identification Authority of India and co-founder and chairman of Infosys, said technology has emerged as a great leveler in the past decade. As the world increasingly shrinks to fit the various screen sizes of the devices in our hands, technology will connect, collaborate and create experiences and products once never thought possible, he added.
