Financial Disruptions : Charting The Road Ahead – DMS, IIT Delhi

The Department of Management Studies, IIT Delhi organized Confluence’16, the annual Finance & Marketing Conclave on September 17, 2016. The second session post lunch was based on the theme “Financial Disruptions: Charting the Road Ahead”.The panel chair was Dr. Shveta Singh and the panellists for the session were:

  • Mr. Lalit Malik, Chief Financial Officer, Dabur India Ltd.
  • Mr. Vivek Agarwal, Chief Financial Officer and Whole Time Director, Jindal Realty
  • Mr. Amit Sukhija, Lead, Banking and Capital Markets, KPMG
  • Mr. Nitin Gupta, Associate Director, BMR Advisors
  • Mr. Anil Saxena, Group Chief Financial Officer, Religare Enterprises Ltd.

The panel chair, Dr. Shveta Singh laid the foundation for the interaction by bringing to light the glowing reality of financial disruptions and the importance of good corporate governance tools to deal with this. The conclave embarked thereafter with introductory talks by the eminent panellists, led by Mr. Vivek Agarwal presenting examples of ways in which disruptions have not had much effect on India as expected. To stress on his opinion, Mr. Vivek Agarwal cited instances of good conditions of monsoon this year followed by high production, seventh pay commission, improvement in imports and introduction of GST.

Further, Mr. Lalit Malik conversed about the volatility, complexity and the interlinking of the world. He stressed on the fact that we are not living in isolation and therefore, anything that happens in the world is bound to affect us in some way or the other and one of the examples is the extremely fast pace of technological disruptions. In financial terms, with technology and social media’s aid, government is supporting the fiscal changes. Digital wallet, digital locker, authentication using Aadhar cards, conversion of basic banking activities to online platforms, automation of income tax, internal financial data becoming paperless due to shift to cloud have made things easier but at the same time have resulted in abundance of data and the capacity to adjust to it is the real challenge. Moreover, government is taking steps in generating a friendly environment by financial inclusions and corporate needs to bank and capitalize on this.

Mr. Amit Sukhija, on the other hand, shed light on the importance of being disruptive in order to succeed. Disruption in the financial sector is backed by change and innovation in technology. Since finance is the most integrated sector, any disruption will have an enormous impact especially on this sector. Citing numerous examples like Mobikwik, Uber, Airbnb, PayPal, and Patanjali, Mr. Amit Sukhija focused on creating a disruption. One major disruption in the financial space is the emergence of large numbers of fintech start-ups in the recent past and the pace at which such disruptions are happening. He went ahead to suggest the concept of fintech becoming irrelevant in the next four years.

Carrying the discussion forward, Mr. Nitin Gupta introduced the audience to the tremendous changes taking place by comparing the computing power required at the time of the first mission to moon with that of a Smartphone today. Such a wave of disruption is progressing with fintechs starting from media, moving to music, retail and then to aggregators. In such cases, there is always one winner and the rest have to either consolidate or merge in order to stay in the competition. Currently, due to poor connectivity in India, in order to move from cash to cashless, it is necessary to come up with fantastic models like unification of financial transactions and increasing the mobile wallet users to keep the entire population on the same page.

Similarly, Mr. Anil Saxena also mentioned various disruptions that have taken place such as the establishment of National Stock Exchange in 1990s being the first financial disruption. According to him, the most efficient and cost-effective solutions formulated to meet day-to-day problems are being termed as disruptions. One example that he quoted was the traditional thought of opening new branches being the perfect solution to increase profitability and revenues. However, this was unsuccessful due to the easily accessible and affordable options available. Technology provides the base for disruption and disruption in itself is not actually done by someone but triggered due to the existing needs. Therefore, financial disruption is nothing to be worried about; rather it makes processes faster and easily accessible. Organizations need to adjust around it and change accordingly.

The interaction further proceeded by opening the floor for questions and the audience bringing up a wide range of questions on various issues like Reliance Jio’s impact on financial sector, role of RBI in shielding organizations from financial disruptions, the freedom within the realms of Indian democracy to take financial decisions and so on. The panellists diligently provided their views on these aspects. Overall, the session was very interactive and enriching for the students.

The students of DMS, IIT Delhi extend their heartfelt gratitude to the entire panel for taking their time out and sharing their valuable views.

Media Cell DMS, IIT Delhi

The Department of Management Studies is a result of the evolutionary process of growth of an idea floated in 1963. What was then a seed, gradually came to life and in 1974, IIT Delhi set up an internal committee to scrutinize the functioning of the management area in the institute. In 1975, an expert committee was setup to formally examine the possibility of launching this area in a more sustained fashion. The result was an M.Tech programme in "Management Systems" in the School for System Studies, (subsequently renamed School for Systems and Management Studies). The year 1978 saw the setting up of the Management Core Group and the core inputs to a full time Management Education at IIT(D) were reconfirmed by an Advisory Committee constituted by the representatives of the Academia and the industry. Since then, there has been no looking back. The School for Systems and Management Studies became the Centre for Systems and Management Studies. This was subsequently renamed as the Centre for Management Studies. In 1993 the Department was brought into existence by amendment to IIT (D) statutes. Clearly, the Department responds to a felt need of the Indian Industry and derives satisfaction from its heavy field orientation in all its curriculum activity. In response to the feedback from the students, alumni and industry, the Department of Management Studies launched MBA programmes in 1997. The department currently runs a two year full time MBA programme (General and with focus on Telecommunication Systems Management) and a three year part time MBA programme (with focus on Technology Management). MBA program in IIT Delhi is designed keeping in mind the changes in business environment and the need of the industry. Our academic program is comparable to the best that are available in the world class business schools for creating managers to face the new challenges of the ever changing market environment. The entire course aims at creating holistic managers trained by a very eminent faculty, which is also supported by the experienced professionals as external faculty from India and abroad. The students are admitted through a rigorous screening process that includes CAT score, group discussion and interview. IITD MBAs are known to do well.