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16 articles on digital banking, fintech innovation, and AI in financial services.
Digital Transformation•6 min read
Why are we stuck with 1990’s core banking solutions?
Core banking solutions (CBS), developed in the 1980s and 1990s, transitioned banks from manual ledgers to digital systems, enhancing efficiency and control. However, these systems, initially designed for branch-based operations, are now outdated and unable to meet evolving customer expectations driven by digitalization. Over three decades, CBS have been extensively patched, leading to significant technical constraints, including reliance on structured databases ill-suited for AI applications. Customization for regulatory changes has created complexities, while a proliferation of satellite systems complicates migration to new core solutions. As non-banking entities advance at internet scale, banks risk falling behind. To address these challenges, a proactive, AI-focused strategy is essential, emphasizing collaboration between traditional banks and fintechs to capitalize on emerging opportunities in the banking landscape.
Akhil HandaJan 20, 2025
Fintech Innovation•4 min read
Let the Feriwala Come to You!
Akhil envisions a future where e-commerce mirrors the proactive approach of traditional feriwalas, with merchants bringing offers directly to consumers instead of waiting for them to search. This concept utilizes AI-powered personal assistants that can scan the web, negotiate prices, and curate tailored options based on user preferences. Flipping the current HTTP protocol from a request-response model to a proactive merchant-ping model could revolutionize commerce. This approach would enable merchants to respond to user-defined intents in real-time, transforming advertising into consent-based, intent-driven messaging.
Akhil HandaJan 13, 2025
AI in Banking•4 min read
Will AI buy the cars?
The Article discusses the implications of AI on productivity and employment, drawing parallels to historical economic shifts. It notes that while AI can enhance productivity, it does not consume goods, raising concerns about potential declines in consumer spending. The author highlights significant gains in coding through AI adoption and a shift in income from labor to capital providers. Citing historical precedents like the Great Depression, the text suggests that technological advancements create new job opportunities despite initial dislocation. It emphasizes the need for individuals to adapt by acquiring technical, creative, and critical thinking skills, along with soft skills like communication and relationship-building. Ultimately, the current low unemployment rate and the rise of tech-driven jobs suggest a positive outlook on employment despite fears of technological unemployment.
Akhil HandaJul 23, 2024
Global Trends•3 min read
King metric for stock market returns- ROCE or ROE?
Akhil discusses the debate between Return on Equity (ROE) and Return on Capital Employed (ROCE) as key metrics for evaluating stock market returns. ROE measures net income against shareholders' equity, while ROCE assesses EBIT over total capital employed. Both metrics evaluate capital efficiency but from different perspectives. ROCE reflects operational efficiency unaffected by capital structure, whereas ROE focuses on shareholder returns, making it the preferred metric for investors seeking higher returns. Notably, only 24% of stocks on the NSE have an ROE exceeding their ROCE, indicating a concerning trend in corporate financial health and the need for improved access to innovative debt capital. The author emphasizes the importance of enhancing debt availability for corporate growth and efficient capital utilization.
Akhil HandaFeb 1, 2024
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