While highlighting the importance of technology in banking sector and launching the vision for the Future of Finance for bank, Uday Kotak, Executive Vice Chairman & Managing Director, Kotak Mahindra Bank said, the bank’s digital-first organic growth strategy will be driven by its ABCD charter and is fuelled by the deeper penetration of India Stack coupled with formalisation of the Indian economy (GST) and financial savings. He was of the view that India has the potential to be a $10 trillion economy by 2030 and over the next five years, private sector banks can increase their market share from 30% to 50%.
“India has the potential to be a $10 trillion economy by 2030. I believe that over the next five years, private sector banks can increase their market share from 30% to 50%. We see immense opportunity and we will work to disproportionately increase Kotak’s share of the financial services pie,” said Uday Kotak.
“A year back we set out on an ambitious journey to bring millions of Indians into the banking fold, by using technology to mitigate much of the friction in opening a savings bank account. We now aim to expand the convenience of 811 to a full suite of banking products and services, and make it available to Indians across all demographics in every Kona of this country,” he said.
On March 29, 2017, in just over three months of the RBI permitting the use of Aadhaar-based OTP authentication process for account opening, Kotak launched 811. Kotak’s total customer base, which stood at 8 million when 811 was launched, has grown rapidly to around 12 million as on December 31, 2017. With a 2% share of India’s deposits, Kotak already commands about 8% per cent of India’s mobile transaction value.
“India has the potential to be a US$ 10 trillion economy by 2030. I believe that over the next five years, private sector banks can increase their market share from 30% to 50%. We see immense opportunity and we will work to disproportionately increase Kotak’s share of the financial services pie,” he said.
Aadhaar and the larger India Stack have been game changers, more so for banking and financial services. In 2017, Aadhaar-based systems completed 10 billion authentications, which is nearly five times that of card transactions at PoS (point of sale). The number of eKYCs stood at over 3 billion in the same year.
Nandan Nilekani, Founding Chairman, Unique Identification Authority of India and co-founder and Chairman of Infosys Ltd said, “Technology has emerged as a great leveller 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.”
“With Aadhaar, we set out to create a forward looking digital ID platform that would empower over a billion Indian residents to get access to services at unprecedented speed and convenience. It is heartening to see how the banking industry, led by Kotak 811, has leveraged Aadhaar to reimagine bank account opening from days to minutes. I commend Uday and his team for taking the lead and continuing to leverage the power of technology and Aadhaar as they transform the banking experience for Indians”, said Nilekani.
Kotak’s ABCD Charter envisions the adoption of futuristic technology to deliver seamless and delightful customer experience in a fast evolving banking landscape including – AI enriched App, Biometric enabled Branch, Context enhanced Customer Experience and Data empowered Design.