Strategic Consultant
Exploring the intersections of thought, change, and opportunity.
A curated space for unconventional insights, thought experiments, and exploratory musings. Perfect for topics that don’t fit neatly into a box but spark meaningful conversation and fresh thinking.
When implementing a core banking system, restructuring the organization is vital for efficiency. Addressing employee resistance through clear communication, early stakeholder involvement, and support enhances adoption. Demonstrating quick wins and highlighting benefits builds trust, while ongoing feedback allows for adaptations. Overall, empathy and proactivity are key to a successful transition.
The importance, of being correct and precise, is often highlighted in tasks and projects. However, an experience from a rural bank reveals that consistency, ensured uniformity and reliability, can sometimes outweigh accuracy. Both are pivotal in different contexts, like in software interfaces, record-keeping, and banking. Yet, depending on the situation, one could be more important than the other - consistency helps prevent errors and confusion, while inaccuracy can lead to significant losses.
Target-oriented or impact-oriented programmes refer to initiatives that are designed to achieve specific objectives or outcomes. These programmes are typically developed with a clear understanding of the desired results and the steps necessary to achieve them. The effectiveness of target-oriented or impact-oriented programmes is often measured by their ability to achieve their stated objectives and produce tangible results. As such, careful planning and monitoring are essential to ensure that these programmes are successful in achieving their intended outcomes.
The Indian rupee (INR) is gaining international acceptance, with 18 countries agreeing to trade in INR, and the UAE considering settling trade in rupee-dirham. Trading in INR offers benefits such as reduced exposure to exchange rate fluctuations, lower transaction costs, and enhanced economic sovereignty for India. While India aims for international currency status, challenges remain, including exchange rate volatility and capital flow restrictions. Despite challenges, INR's growing international use enhances India's economic influence and stability.
Credit Suisse was once one of the world's leading banks, with a reputation for innovation and excellence. But in March 2023, it shocked the financial world by announcing that it had run out of cash and was being taken over by its rival UBS. How did this happen? And what can other banks learn from its demise? Credit Suisse's collapse is a cautionary tale for all banks that want to survive and thrive in the post-pandemic era. They need to be agile, customer-centric, and responsible if they want to avoid becoming obsolete or irrelevant.
Silicon Valley Bank (SVB) was a well-capitalized institution seeking to raise some funds. Within 48 hours, a panic induced by the very venture capital community that SVB had served and nurtured ended the bank’s 40-year run. While relatively unknown outside of Silicon Valley, SVB was among the top 20 American commercial banks, with US$209 billion in total assets at the end of last year. Faced with higher interest rates, loss of IPOs, and a funding drought, SVB’s clients began pulling money out of the bank. Lenders somewhat similar to SVB are in an unfortunate situation. A failure to protect deposits over $250,000 could cause a loss of faith in other mid-sized banks. Analysts said SVB’s collapse is unlikely to set off the kind of domino effect that gripped the banking industry during the financial crisis.
Banwarilal's samosa business serves as a parable for economic downturns, highlighting the impact of greed and poor decision-making. His son's fear-driven cost-cutting measures nearly led to the business's collapse during a recession. Returning to ethical practices, Banwarilal revived his business, illustrating the importance of quality and ethics for sustainable success. This story emphasizes the need for responsible and far-sighted economic practices to prevent future crises.
Since the COVID-19 pandemic, the threat of global recession has grown due to central banks' efforts to control inflation. While advanced economies may face recession, India could see relief from falling global commodity prices. However, India's export and investment outlook may be affected by a potential US recession. Despite global uncertainties, India's recession probability remains low, with the economy showing signs of robust recovery. The impact of a US recession on India will depend on its severity, but India's resilient economy and strong domestic policies offer a relatively stable outlook.
The Indian rupee has plunged more than 6 per cent against the US dollar this year and tumbled to record lows against the American currency in recent weeks, weighed down by broad strength in the greenback and as investors retreated from domestic share markets. This is in spite of the Indian central bank’s conviction and actions to stall a freefall. The Reserve Bank of India (RBI) has attempted to save the vulnerable rupee. The analysts say the dollar is likely going to remain strong for the next three months, possibly to the end of the year. The Fed wants to maintain a strong dollar so that the dollar can remain the world's major reserve currency.
Economic sanctions on Russia have highlighted the US dollar's power and the risks of heavy reliance on it, fueling discussions about China's Renminbi (RMB) as a global reserve currency if Beijing loosens its grip on the economy. Over 70 central banks hold RMB, and its popularity for international transactions is growing. China must open its markets, ensure currency stability, refrain from manipulation, and develop a mature financial system to boost RMB's global role.
Indrajit Roy Choudhury 