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The size of a nation’s lending portfolio is closely linked to its economic growth and development. Take South East Asia as an example where the countries that have high GDP growth also have high loan-to-GDP ratios. All these countries have a robust lending market supplying affordable, hassle-free financing to corporate, SME and retail borrowers, creating consumption-driven growth momentum.
But this was not always the case. China in 1975, Thailand in the 1980s and Malaysia in the 1990s were all struggling to grow their GDP. But then they went through a retail boom, when per capita income crossed a threshold $1,000 to stoke the aspirations of the people for a better lifestyle, better housing, better transportation, etc., which created a demand for retail financing. Today, the world is in a different yet similar situation, with the pandemic denting economic health globally. One way to reclaim growth is to fuel consumption, and one way of fuelli
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Rajashekhara V Maiya, Global head of Business Consulting and Product Strategy for Infosys Finacle, discusses five trends affecting banks and financial service providers.
January 04, 2021
In 2020 when we introduced the theme of “Scaling Digital,” little did we imagine the speed and intensity with which it would take hold. We continue with the same broad theme in 2021 as “Scaling Digital Leadership.”
This article takes a look at the 5 “scaling digital” business trends that will make the most impact on banks and other financial service providers around the world in the new year. The trends are, inevitably, discussed against the backdrop of the Covid-19 pandemic, which rewrote almost every important aspect of banking, perhaps forever, and amplified the need and urgency for digital transformation at scale.