Cedar-IBSi Digital & Core Banking Summit

The emphasis on a future-ready banking system is already established. As the market and regulatory requirements evolve dynamically, a bank’s technology stack needs to be flexible enough to adapt quickly to the changes without necessitating an overhaul of the entire system. In today’s banking environment, cloud adoption, open banking, Artificial Intelligence, and customer-centricity trends take centre stage as banks look to modernise legacy infrastructure and transition towards a digital-first way of operating.

The Cedar-IBSi Summit on Digital & Core Banking explores the various viewpoints from global industry experts, covering a wide variety of topics in Digital Banking, Open Banking, Core Banking Modernisation, and Cloud Adoption, among others.

The Digitization of Banking in India

India’s digital banking landscape is on an impressive trajectory, with the market expected to grow at a CAGR of 9.8% between 2022-2028 reaching USD 1.5 Bn by 2028. This momentum is underpinned by the sheer scale of adoption, with approximately 295 million digital banking users in India and growing relentlessly. Notably, this figure far surpasses the number of users even in mature markets such as the United States which has 225 million users, highlighting India’s leadership in embracing digital financial services.

Key to this transformation has been the Unified Payments Interface (UPI), which has become the linchpin of digital transactions in India. UPI offers users a secure and lightningfast method for conducting payments via their smartphones, streamlining financial transactions across the nation, and is finding acceptance across several countries across the world. Initiatives like the Jan Dhan Yojana have successfully integrated millions of previously unbanked citizens into the formal banking ecosystem, driving financial inclusion to new heights.

Complementing these efforts, mobile banking applications have emerged as indispensable tools, granting customers convenient access to a plethora of banking services, including account management, fund transfers, bill payments, and investment opportunities. These applications have seamlessly woven themselves into the fabric of consumers’ financial lives.

The integration of Aadhaar, India’s robust biometric identity system, has introduced a layer of security and efficiency to the Know Your Customer (KYC) processes. As a result, individuals now find it significantly more convenient to open bank accounts and harness a wide spectrum of financial services through digital channels. At the same time, banks have diligently implemented stringent measures encompassing two-factor authentication, encryption protocols, and biometric verification, which has helped strengthen the security of digital transactions.

While investments in digital banking channels took front seat in the past few years, having a NextGen core banking system at the heart of their technology stack is an imperative for supporting rapid growth. India’s Core Banking solutions market which stood at USD 612 Mn in 2022 and is expected to grow at a CAGR of 16.4% reaching USD 1.5 Bn by 2028.

The transformation of core banking systems in India represents a significant endeavour within the banking sector, marked by substantial investments aimed at rejuvenating outdated infrastructure. This extensive overhaul will yield a multitude of advantages, including heightened operational efficiency, minimized downtime, and an enhanced ability to scale operations in response to rising economic activity. Integration of modern core banking systems will strengthen real-time transaction processing capabilities, providing customers quick updates at scale improving customer satisfaction.

The newfound agility of contemporary core banking systems can empower banks to introduce innovative products and services swiftly. These offerings encompass digital loans, wealth management solutions, and cutting-edge robo-advisory services. Crucially, these modern systems are designed with scalability in mind, enabling banks to adeptly manage surges in transaction volumes and seamlessly accommodate future growth, solidifying their position in India’s evolving financial landscape.

The Cedar-IBSi Digital & Core Banking Summit explores this growing influence of digital technologies on Indian banking industry, with perspectives drawn from industry experts across global and regional banks and technology players.