‘Banking industry poised for dramatic changes’

Manama : The banking industry as a whole could see big changes in the near future with its focus shifting dramatically to enhance online presence as well as robotic processes, according to an expert.

Bank of Baroda Chief Executive of GCC Operations Vineet Dudeja while talking to DT News said physical banking is going to gain less currency in the near future, which would also bring huge changes in the way banks and customers interact. 

“Banks will soon reduce the number of physical branches and focus mainly on online banking where they can serve the customers quickly and efficiently,” Dudeja said. 

In this regard, he pointed out that the 5th generation wireless systems, which will be introduced in the next few years, could be a game changer.  

“Increased speed and capacity of the 5G would allow banks to provide customers with additional services,” he said adding “Digitization has taken over, it goes without saying.” 

“Smart phones and gadgets have become integral in our life. Over the years banks have introduced various technologies that has added convenience for the customers. 

“With technological advances becoming more complex, banks will soon be better equipped to provide more advanced services. When 5G enters the market for example, it would open up a lot of possibilities for the banking sector,” he added. 

While highlighting the changes technology would bring forward, he, however, warned of a reduction in the headcount. 

“Certain staff members will have to go,” he said. “That they will be replaced with technically proficient people.” 

This, according to Dudeja, would lead to a change in hiring policies with more opportunities opening up for candidates with a technology background. 

“Some major changes could manifest as early as in the next few years,” he said. 

Robotic banking

Speaking about the changes the banking system would see in near future, Vineet Dudeja opined that “Robotic banking could become a common sight.” 

This, according to Dudeja, would make the banking services so advanced that a customer could walk into a garment store and buy clothes just  by swiping on the price tags. 

“Such kind of services is already being used in some parts of the world,” he said, adding that security will be the prime concern. 

Voicing his concerns regarding the vulnerability, Dudeja stressed that banks would need to ensure that they implement the most secure system to protect themselves and the customers.

When asked about the growth prospects of the Bank of Baroda in Bahrain, he said, “We are happy with what we are able to offer in Bahrain, our operations have strengthened and our bond with Bahrain has become greater.”

While acknowledging the competitive atmosphere of Bahrain’s banking sector, he said that the regulators here are “efficient and proficient”.

“I am encouraged by how they have a strong stance against anything that could negatively affect the sector,” he  said adding “Bank of Baroda, which is licensed as a wholesale bank in Bahrain has found success in the Kingdom. 

Dudeja took over as the Regional CEO five months ago and is working out of his office in Dubai. He is on his first visit to Bahrain.