Kumar, who is also a former State Bank of India chairman, added that the fintech companies are challenging the legacy system in an innovative way.
Mastercard, Polygon (PSS Act). (Photo: iStock)
The trust of the depositors is with the banking system and not with fintech companies, Rajnish Kumar, chairman of Mastercard India said while speaking at the CII banking conclave, on Friday. However, Kumar, who is also a former State Bank of India chairman, added that the fintech companies are challenging the legacy system in an innovative way.
He said the banks are now conscious about the fintech companies’ innovative capabilities and changing fast with the times. Because of the legacy system, the challenges for the banks are much more, he added.
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“Leadership has a big role to play. Most of the public sector banks are actively adopting technology,” he said. Implementation of the core banking system (CBS) was a humongous task, but the legacy banks did it, he added.
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He believed that core banking has now changed and paved the way for app-based banking.
It may be noted that earlier at a conclave, he had said fintech companies are rewriting rules for innovation and have advantages over banks in the payments ecosystem. He said, “Banks have advantages over fintechs in some spaces but nowadays, customers are likely to use payment systems operated by fintech companies.”
Kumar is guiding Mastercard’s Gautam Aggarwal-led South Asia executive leadership team. He has nearly four decades of service with India’s largest lender – SBI – and has held a wide range of leadership roles at SBI and its subsidiaries across India, the United Kingdom, and Canada. He has also spearheaded the development of SBI’s digital platform YONO.
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