FIBAC 2018: Providing Financial Services to SMEs in an Increasingly Digital Eco-system
The past decade has seen the Indian banking industry starting to undergo a transformation like it has never seen before. The rate of change in the industry continues to increase every passing year, with changes in the competitive landscape as well as the customer segments. There is rising competition from the new-age, more agile and technologically advanced fin-techs and NBFCs, while the banking industry continues to struggle with the problem of bad loans, which exerts a strain on the adequacy of capital of the banks. The market, however, continues to expand, with more and more new-to-credit customers entering the formal financial system, both retail as well as small businesses. This has opened up a plethora of opportunities for lenders. The economy is also showing signs of turning around in terms of credit growth, with advances having grown at nine percent in financial year 2017-18 compared to four percent in financial year 2016-17. This year’s FIBAC report seeks to answer questions like - How have banks performed vis-à-vis peers in the recent years? What do they need to do in order to take the next leap? How can banks ensure that they maintain a healthy asset book? What do the different customer segments look for in a bank?