Banks may take 2-3 years to standardise core technology, products and customer applications after the government proposed to merge some prominent public sector lenders last week, analysts said.
“The integration process would take 24-36 months. Website, mobile apps, IVR — all have to get merged into one. While you are doing this, cyber security becomes an important matter to look into,” said Sanchit Vir Gogia, chief executive, Greyhound Research.
During the integration, the lenders will generate huge amounts of data and analytics will play a bigger role to create 360-degree user profiles, taking data from multiple banks, Gogia said.
“If they use the same core banking system, the task becomes easier. But, it is not going to be easy, there are similarities, but there is uniqueness as well in terms of products,” said Gogia of Greyhound Research.
Apart from integrating technology, banks have to deal with cultural differences. “All these banks are part of the same jungle, but they are not the same animal,” Gogia said.
Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.
Have a question on this or other Technology & Innovation topics? Click here to set up an enquiry call with Sanchit Vir Gogia.
Copyright © 2019 Greyhound Research. All rights reserved. You may share this research note using the options made available. Please don’t copy this research note (complete or parts) and distribute over the web and emails. Connect with us if you need clarifications.