Banks will lose out if they don't partner fintechs: Axis Bank CEO

He highlighted that as customers transact more digitally, the banks' operating costs will come down

Banks will lose out if they do not collaborate with fintechs as they have a slew of technologies, products, and services lined up, which can make interaction with customers more fruitful, Amitabh Chaudhry, managing director (MD) & chief executive officer (CEO) of Axis Bank, said on Friday.

“It would be a loss on our side if we were not working with them,” he said at the Global Fintech Fest.

Chaudhry explained that taking some stakes in fintechs can result in us collaborating deeper and more than what we do typically in a partnership.

He added that banks also want to look like fintechs in front of the customers who want to engage with them in a certain way and in many cases, they have realised that they don’t have much resources or the time to do that and fintechs can help the banks get there.

He highlighted that as customers transact more digitally, the banks’ operating cost will come down.

He also added that the rising incidences of frauds has made people “worried” about undertaking banking transactions.

Chaudhry added that the bank will soon offer a service on its mobile app where customers of other banks will be able to undertake transactions rather than being able to view account details as is being offered today.

He added that the bank is running 15 pilots on artificial intelligence and machine learning, with one of the areas being in Human Resources, where technologies will help it sift through resumes to make hiring easier.