Changing face of BFSI :

The Banking, Financial services, and Insurance (BFSI) sector is an industry term used to define companies
that provide a range of such financial products/services. Its potential for growth is especially stronger in
developing nation like India, as it is one of the fastest growing economies in the world.

Banking Mutual Funds

BFSI

Insurance NBFC
Changing face of BFSI : Banking
Current Banking Structure :
 Changing face of BFSI : Banking
Banking Evolution

• Customer Onboarding ( KYC ) : • Customer Onboarding ( KYC) :

Then : Now :

1. Account opening required a introducer, an existing
account holder.
2. Physical documentations required.
3. Took close to 3 to 4 days to open an account.
4. Each bank seperate KYC.
1. Account is opened without any introducer.
2. PAN & Aadhar based account opening.
3. Account open happening in a couple of hours
4. CERSAI KYC implemented accross financial
institutions.
 Changing face of BFSI : Banking
Banking Evolution
Transactions :
Then : Transactions
Now :
1. Customer specfic to a branch.
1. Anywhere banking through Core Banking
2. Manual Ledgers to note transactions. Services.

3. Physcial cheques to move through clearing 2. Real time transactions alerts through SMS,
houses. banking applications.

4. Fund transfers used to take 2 days for urban and 3. Scanned Copy of cheques moved and clearance
up to 15 days for Rural Branches. provided centrally.

5. Cash withdrawal only during banking hours.
6. For a loan multiple cheques to be provided for
each month.
4. NEFT, RTGS, IMPLS, UPI, multiple channels for
customer update.
5. Cash withdrawal/Deposit through ATMs network
accross the world.
6. Platforms for electronic clearing system ECS
now called as NACH by NPCI.
 Changing face of BFSI : Banking
Banking Evolution Customer Service
Customer Service : Now :
Then :
1. Anywhere banking through Core Banking
1. Customer service through branches only. Services.

2. No standards purely dependent on the individual 2. Real time transactions alerts through SMS,
based out at the branch. banking applications.

3. Time consuming since data was recorded 3. Scanned Copy of cheques moved and clearance
physically. provided centrally.

4. NEFT, RTGS, IMPLS, UPI, multiple channels for

4. Cash withdrawal only during banking hours.
5. For a loan multiple cheques to be provided for
each month.
customer update.
5. Cash withdrawal/Deposit through ATMs network
accross the world.
6. Platforms for electronic clearing system ECS
now called as NACH by NPCI.
Changing face of BFSI : Insurance.
Insurance Evolution
 Changing face of BFSI : Life Insurance

Life Insurance Industry completed 19 years of opening up of sector.

Currently there are 24 players in the Life Insurance Industry.

All the major International players are present in the Indian Insurance market.

 Foreign partners have brought in capital of approx $ 1.25 billion (Rs. 6,700 Cr) as FDI.

 The insurable population in India is 60 crore.

India has the largest in-force policies in the world approx 33 crore.

The market share of private sector companies in the non-life insurance market rose
from 13.12 per cent in FY03 to 50.01 per cent in FY19 (up to September 2018).
 Changing face of BFSI : Insurance
Insurance
Then :
1. LIC was the major player.
2. Limited product avaliability.
3. Customer on boarding was physical.
4. Mainly distributed through Agents.
5. Absence of Bancassurance model.
Insurance
Now :
1. 24 Pvt players now contribute close of 50% of
the first year premium.
2. Evolved products and market linked products
were avaliable.
3. Customer on-boarding happening through
end of end digital journey.
4. Banks, NBFC, Agents, Digital platforms many
platforms have evolved.
5. Innovative products through bundled offers.
Changing face of BFSI : Mutual Funds
Then :
• No provision of non physical record keeping.
• All process around physical record keeping

Now :
• Trust on technology.
•