RBI Deputy Governor Rohit Jain recently addressed the Global Fintech Fest 2026. He warned that while new technology makes banking better, it also brings three major risks: speed, concentration, and opacity (lack of transparency). These risks are not new, but technology makes them spread faster and wider through our banking system. If we are not careful, a small mistake can turn into a big crisis before anyone can stop it.

The first big worry is speed. Today, automated systems analyze data and make moves much faster than a human bank officer can react. The Deputy Governor noted that resilience (staying strong during a crisis) cannot just be about avoiding every error. Instead, banks must be able to detect problems early and stop them before they grow. At machine speed, we need better safety nets to catch mistakes immediately.

The second concern is concentration. This happens when many banks depend on a small number of technology providers or cloud services. If one big technology vendor fails, it could cause a 'domino effect,' hurting many banks at the same time. This is dangerous because it creates a common point of failure for the entire Indian financial system. Bankers must be aware of who is providing their tech and what happens if that provider goes down.

The third issue is opacity. Advanced computer models now make decisions in ways that are hard to explain. Mr. Jain sent a clear message: sophisticated tech does not mean less accountability. He said a customer deserves a better answer than 'the model said so.' Banks can outsource the calculation to a tech firm, but they cannot outsource the consequences. If a loan is rejected or a transaction fails, the bank is still responsible to the customer.

Technology does not make traditional banking risks disappear. Borrowers can still default (fail to pay back loans), and liquidity (available cash) can still dry up. Mr. Jain mentioned that things like quantum computing will also challenge our security systems in the future. We must prepare for these vulnerabilities now, rather than waiting for them to become a real-life crisis. Prudence (being careful) is the key to managing this innovation.

For policymakers at the RBI, this is a difficult balancing act. If they regulate too early, they might kill innovation. If they regulate too late, the risky technology might already be too deep in the system to fix. There is no perfect timing, but the focus must remain on the customer. Whether it is a saver, a merchant, or a family, the financial system exists to serve them safely and fairly.

For bank officers on the ground, this means being more vigilant about the tools they use. Even if you use a high-tech platform, you must understand the outcome it produces for your branch customers. The goal is to make finance more useful and resilient, not just faster. In the end, technology is only successful if it works reliably for the common person.