In this podcast episode, “Banking meets FinTech” we sit down with Kumaran Selvarajalu, Senior General Manager: Payments at The Banking Association of South Africa. An industry body representing all registered banks in South Africa. These include both South African and international banks.
Evolution of Banking:
Banks are fundamentally different entities, each adapting uniquely to the changing landscape. Both traditional banks and neobanks or challenger banks face challenges and opportunities. Banks have a history of evolving and adapting to technological changes, suggesting that they will continue to do so.
Digital Banking and Neobanks:
The terms “FinTech,” “neobank,” and “challenger bank” can be limiting, as these entities often share similarities and differences beneath the surface. Established banks come with experience but also legacy systems and infrastructure. In contrast, newer players can build their systems from scratch, often with innovative solutions. Both traditional banks and newer entrants have their strengths and challenges.
Cash and Digital Transformation:
Cash is resilient, and there are many challenges that come with replacing analogue systems with digital ones. It is important to note that technology alone cannot transform a business case; the fundamentals must be strong. Kumaran thus expresses concerns about the digital divide, where technology adoption does not necessarily correlate with increased productivity or social equity.
The discussion concludes with a call for balance between the old and new worlds of banking, recognizing the complexities of the evolving ecosystem and the importance of maintaining trust and convenience for consumers.
Kumaran Selvarajalu’s Linkedin: https://www.linkedin.com/in/kselvarajalu/
The Banking Association of South Africa’s website: http://www.banking.org.za/
Darren Franks’ Linkedin: https://www.linkedin.com/in/darrenfranks/
