Balancing Tech, Skills & Costs

CEOs of insurance, bank and fintech explain the balance between tech, Al, skills and costs for achieving business goals:

- Ravi

Part 1

Tech Cost Dynamics

Leaders explain how they look at tech costs and ensure that it aligns with business goals:

In the BFSI industry, technology has become the backbone of operations, powering everything from customer interactions to regulatory compliance and fraud prevention. As tech costs soar, they now rival the historical expense of salaries, posing a significant challenge during periods of financial strain. Unlike trimming the workforce, scaling back on technology is not an option - especially when digital platforms are critical for customer trust and operational efficiency. So, how can BFSI companies manage rising tech expenses during tough times without jeopardizing their core services or compliance requirements?

PEOPLE COSTS & LAYOFFS

Traditionally, Indian banks barely resort to layoffs unless there is systemic pressure. Managing costs in banking, especially during times of systemic pressure, requires more than a knee-jerk reaction. George K John, Executive Director at ESAF Small Finance Bank, explains: “While salaries have traditionally been a significant expense, human intelligence is highly recommended in banking. What one can do is, optimize costs by setting longterm targets. The Indian banking system, widely regarded as one of the best globally, continues to attract top talent, with many aspiring talents eager to join the sector due to the expanding opportunities.”

Opportunities within the banking system continue to gallop, particularly in technology-driven areas.