The systems need to be reactivated in order to meet the huge demand of digital transactions that the year 2020 has fabricated. Several obstacles have to be taken care of by the Lenders before they can take a step ahead towards Digitization. In a world that is going entirely, digital outliers cannot be completely eliminated. Recently Google one of the major technological company suffered a blackout due to which many of its services were disrupted leading to a lot of obstacles being faced by their users.
Failure is faced by many of the banks from time to time but it was after a magnificent era that it was looked into by the Reserve Bank of India, the banks whose failure was looked into were HDFC Bank and State Bank of India’s YONO app.
Murali Nair, President Banking Zeta, a technology provider to banks commented ” The system of the banks were not suitable to handle the vicious amount of digital transactions and if the system was not reinvented in time due to the increasing demand of digital transactions the blackouts would continue for the long run”.
The basic reason for the failures is the inheritance of the legacy systems. Newer systems and applications are being built on them and due to the incompetence of the old system with the new one the outrages would continue to happen. Together for the efficient functioning of the banks, the IT applications built-in shall be functioning in accordance. Indian Banks need to be well adaptable and accustomed to newer technologies to be able to function efficiently. One of the examples being the Unified Payment Interface that had been launched in 2016. Owing to the huge demand for digital transactions the banks need to pull up their socks and work in accordance. Major challenges are being faced by the banks from major tech companies who have inbuilt newer technologies and are offering their customers new ways to transact although it is not a cake walk for banks who even introduced the rival products to be in competition.