He emphasised on the need for facilitating financial inclusion of the people living in rural areas.
With widespread use of mobile and internet in recent years, doing bank transactions will be handy, quick and cost effective, which has the potenital to kill physical banking in the coming 5-6 years.
Speaking at an IAMAI event on Thursday, NITI Aayog CEO Amitabh Kant said the proliferation of mobile phones and internet will enable financial technology firms to do quick analysis and also provide loans to people hassle-free with a good credit history.
"My view is in next 5-6 years you will see death of physical banks. It will be very difficult for physical banks to survive because the cost of physical banks will be so enormous. It will be so enormous compared to an online instrument, many of the fintech start-up and their ability to do data analysis (and) providing lending," said Kant.
He emphasised the need for financial inclusion of the people living in rural areas.
"Amazing thing is that a lot of this going to happen because India will become data rich before it becomes rich. Our ability to use technology, analyse data and able to reach and provide financial inclusion to people in rural area will be key drivers of growth," Kant said.
As per him, India is now home to about 900 financial technology players and received funding of $3 billion. This has helped Indian banks to transform themselves riding on the wave of Fintech.
Source: Media reports