Page 101 - ASR_Forewords

EDITORIAL

Dr. A. S. Ramasastri
1

DIGIBANKS: CAN COVID 19 BE A CATALYST?
few decades to ensure banks embark the digital path.
I It is in this context that a special mention needs to be made
T was just a century back that the world witnessed a
devastating pandemic. The Spanish Flu shook countries
across the globe during 1918-20, affecting not less than
500 million people and killing as many as 50 million. The about the research activities in reputed academic
institutions. While fundamental research has enabled newer
cold statistics themselves are chilling, leave alone the technologies to emerge, applied research has ensured that
tragedy individuals went through with the loss of lives of new technologies are adopted by the banking sector. Close
near and dear. There was no vaccine to protect against coordination between academicians and practitioners has
influenza infection and there were no antibiotics to treat been helping faster adoption of suitable technology by
secondary bacterial infections. Naturally, control efforts banks.
were limited to non-pharmaceutical interventions such as
isolation, quarantine, personal hygiene, use of disinfectants, Banks have done a great job in going digital. They can
and limitations of public gatherings. certainly do more in terms of cost reduction, customer
experience and transaction controls. More importantly, they
Unfortunately, we are in a similar situation in 2020 due to can put in place better risk management solutions, fraud
COVID 19. During the intervening hundred years, humans prevention mechanisms and grievance redressal systems.
have progressed dramatically in the field of medicine. There
has been phenomenal growth in diagnostic techniques, drug The right technology is available for banks to adopt in the
administration, vaccines, surgical procedures and use of form of Artificial Intelligence, Distributed Ledger, Internet
technology like laser. The last fifty years witnessed of Things, Virtual Reality and Biometrics, to mention a few.
adoption of technology to enhance both diagnosis and Banks can take advantage of these to make themselves more
treatment. Despite all these developments, the virus has agile, robust and secure.
been spreading dangerously fast. The medical research all Quite often difficult situations demand different solutions.
over the globe is focussing on finding ways to control the In such situations, individuals and institutions quickly adapt
spread and consequential damage. to the new environment and adopt innovative systems.
There is not adequate literature available with us now on the During such phases of history, change happens as
impact of Spanish Flu on the availability of banking revolution rather than as evolution. There is a compelling
services to the customers during its prevalence. We can only need to keep aside the conventional time taking processes
guess that banks would have suspended many services as and procedures and put in place new systems very quickly.
banking those days was delivered in person. There was no COVID 19 has driven the entire world to a new normal. It
technology support to deliver the services over the net on is playing the role of a catalyst for ushering in hitherto not
mobile devices. There was no anytime anywhere banking. thought of systems. Banking is one of the front-runners of
The situation is different today. Even with Government the change. Banks are taking advantage of the unusual
mandated shutdowns and voluntary home stays of a large circumstances and are moving faster to become full-fledged
segment of bank employees, banking service is available digital banks.
uninterruptedly. It is in total contrast to the situation during We feel that the need of the hour is focused attention of
the earlier pandemic. It is all due to large-scale adoption of academicians and practitioners on research in banking
technology by the banking sector. technology. Our journal is helping in its own way, by

The credit to the technology driven banking should go to presenting relevant papers of high quality. I trust that the
the entire ecosystem of banking services – the governments, studies in the journal will be of great help in fast-forwarding
the regulators, the banks, large IT companies, and of late the the journey of DigiBanks.
FinTechs. Each of them has been playing a role in the past

Dr. A. S. Ramasastri ( )
Director, Institute for Development and Research in Banking
Technology, Hyderabad, India
e-mail: asramasastri@idrbt.ac.in