In a recent episode of Business Unplugged, 360tf Co-Founder Vikram Lodha hosted a thought-provoking fireside chat with Ms.Shalini Warrier Executive Director & Business Head – Retail at Federal Bank, a seasoned banking veteran to discuss the evolving synergies between banks and fintechs. Below are some key takeaways from their conversation, shedding light on the current and future landscape of digital finance.
Q1: Vikram Lodha –What makes the current phase of digital transformation in banking unique compared to previous shifts you have witnessed?
Shalini Warrier: “Having been a part of the banking industry for decades, I have seen significant shifts—from the rise of private banks in India to the challenges of the global financial crisis and now, the wave of digital transformation. What stands out today is the crucial role played by three elements:
- The pivotal involvement of the government and regulators in driving this transformation.
- The focus on interoperability, especially in India.
- The incredible speed at which experimental technologies are becoming commercially viable.
Q2: Vikram Lodha – India is often cited as being ahead of its global peers in digital payments. Do you believe there are still gaps to be addressed in this area?
Shalini Warrier: “Absolutely. Despite India’s leadership in the digital payments space, several gaps remain. The first is digital literacy—there is still a significant divide between urban and rural areas. The second gap lies in language—most digital platforms still cater predominantly to English speakers, limiting accessibility for vernacular users. Finally, financial inclusion is another area that needs attention. While many have bank accounts, true financial inclusion remains a work in progress, especially in reaching the underserved segments of society”.
Q3: Vikram Lodha –In the context of cross-border trade and supply chain finance, how do you see banks and fintechs working together in the future?
Shalini Warrier: “Collaboration between banks and fintechs is going to be vital in this space. Cross-border trade, by nature, is complex. But we are already seeing innovations—blockchain, for instance, and central bank digital currencies (CBDCs)—that will make these processes more efficient. The cost of payments and foreign exchange is decreasing, and initiatives like the Open Network for Digital Commerce (ONDC) are helping small and medium enterprises participate in cross-border trade more effectively”
Q4: Vikram Lodha – Can fintechs survive independently, without collaboration with banks?
Shalini Warrier: “In India, I don’t think fintechs can thrive without collaborating with banks, at least not in the current environment. Banks offer trust, regulatory expertise, and infrastructure, while fintechs bring agility and innovation. The best customer experiences come from leveraging the strengths of both. So, the future is in collaboration, not competition.”
Q5: Vikram Lodha –What are the barriers to greater fintech adoption within traditional banks, and how can they be overcome?
Shalini Warrier: “There are several barriers. First is the mindset—traditional bankers need to shift towards a more collaborative culture. Second, legacy systems can slow down innovation, even though middleware and cloud technology are making progress. Third, regulatory clarity is still lacking in some areas, such as deposit-taking and savings accounts. Finally, data security and privacy are ongoing concerns, though they will likely improve with evolving regulations.”
Q6: Vikram Lodha –What should banks prioritise when considering fintech partnerships, and how can they ensure due diligence?
Shalini Warrier: “Strategic fit is the most important factor. Banks should only partner with fintechs if it aligns with their goals. For example, at Federal Bank, we recognised that our brand was strong among small and medium enterprises, but we needed to engage with younger, tech-savvy customers. Partnering with fintechs helped us achieve that. Additionally, financial performance and ensuring the fintech meets regulatory compliance and security standards are essential aspects of due diligence”
Q7: Vikram Lodha –Many young professionals aspire to build careers in fintech or banking. What advice do you have for them?
Shalini Warrier: “Stay curious, keep learning, and be open to change. The industries of fintech and banking are rapidly evolving, and those who thrive are the ones who can adapt to new technologies and trends. Build a strong foundation in both finance and technology, and understand that collaboration will be key to success in the future”
Conclusion: The Future of Digital Synergies
The conversation between Vikram Lodha and Ms. Shalini Warrier highlights the critical role of collaboration between banks and fintechs in driving the next phase of digital transformation. By overcoming barriers like mindset shifts, legacy systems, and regulatory challenges, these partnerships have the potential to unlock greater innovation and improved customer experiences. With exciting opportunities in areas like cross-border trade and supply chain finance, the future is bright for both traditional institutions and fintech innovators.
Publications are invited to explore this evolving relationship and draw their conclusions on the transformative power of digital synergies in reshaping the financial landscape.
