Originally established to leverage India’s cost-effectiveness, Global Capability Centers (GCCs) have emerged as crucial hubs for driving development and innovation of new products and services across various industries. India’s prowess in technology and talent has positioned it as a preferred destination for global companies looking to establish their operations in India.
These centres leverage India’s skilled workforce, advanced infrastructure, and favourable regulatory environment to deliver a wide range of services, including tech research and development, finance, audit, and operational support for their parent organizations worldwide.
The SME sector has long struggled with the issue of restricted credit availability. At the heart of fintech innovation lies advanced technologies such as artificial intelligence (AI), machine learning (ML), blockchain, and big data analytics. With access to a diverse talent pool consisting of engineers, data scientists, and banking experts, GCCs possess the capacity to spearhead innovation in multiple areas such as digital payments, lending, risk management, and customer engagement. This influx of talent is not only benefiting multinational corporations but is also fueling the growth of the broader finance ecosystem globally.
For example, JP Morgan’s global service centre in Bengaluru is expanding its scope to include the development of digital transformation solutions for the company’s global operations. In addition, JP Morgan’s team in India built Story, a commercial real estate management platform, which facilitates online rent processing, market analysis, portfolio management, and tenant screening for smaller-scale multifamily owners and operator businesses.
These advancements made by GCCs enable seamless and fast delivery of customer-centric personalized solutions, streamline banking platforms, and transform payments and lending solutions. These digital solutions benefit small businesses which often require varied but timely access to capital to seize growth opportunities, fulfill orders, or address cash flow challenges.
Further, GCCs in India work closely with global teams and facilitate knowledge sharing and collaboration among diverse business units. For example, NatWest’s India centers closely collaborate with UK teams, driving several core engineering projects including digital models on banking products pricing, automation solutions and AI tools. With around 50 percent of NatWest’s technology headcount in India, these centers are spearheading the bank’s digital transformation and enhancing accessibility to banking services for its customers.
In addition, BFSI GCCs and fintech companies are collaborating in areas such as digital lending, payments, and risk monitoring to adapt to the evolving financial landscape. GCCs also invest significantly in upskilling their talent, particularly in new tech areas such as AI/ML, full stack development architecture, data engineering, and product development, to stay abreast of evolving technologies. With significant tech talent converging in these centres across India, GCCs not only drive technological advancements but also support product development aimed at addressing the traditional challenges encountered by customers, including small businesses.
In summary, India’s GCCs are revolutionizing the digital landscape by harnessing emerging technologies. Through innovative approaches and collaborative efforts, these centres are significantly contributing to the creation of cutting-edge products and services that promote financial inclusion.
source : https://www.financialexpress.com/business/sme/how-indias-evolving-gcc-landscape-is-shaping-fintech-innovation-for-sme-sectors-growth/3509869/