The evolution of digital technologies has had an impact on business operations, increasing efficiency and productivity. They have also changed the way businesses engage with customers across industry segments, including the banking, financial services, and insurance sector. It has enabled businesses and consumers alike to access the services offered at the click of a button from anywhere, anytime.
Some of the key revolutionary trends in the BFSI segment include enabled by digital technologies include:
- Embedded banking where even non-banking companies are offering banking services
- Personalization and just-in-time advice to leverage opportunities and avoid financial troubles
- Enabling secure self-service with facial recognition
- Managing other financial assets including insurance using the web and mobile technologies
Benefits of Digital Transformation in BFSI
With the implementation of digital technologies, the BFSI segment can improve its service offerings, increase productivity by automating repetitive tasks, and facilitate innovation and growth. Some of the common features that are enabling this include:
- Mobile services
- Chatbots, robo-advisory
- Risk prediction and management
- Compliance with regulatory requirements and AML
- Improving self-service and KYC
- Secure digital services
- Analytics and data-backed decision making
Digital solutions minimize the need for human intervention, thereby reducing delays and errors and facilitating innovation and personalization.
5 Emerging Trends in BFSI in 2022
Digital transformation is like an unstoppable behemoth that can only move forward unceasingly, eliminating all those who cannot keep pace. In 2022 too, we will continue to see rapid developments that will further refine the service offerings of the BFSI segment.
Some of the key trends that will continue to change the way BFSI companies work include:
AI/ML: Artificial Intelligence (AI) and Machine Learning have had a tremendous impact on the operational models used by financial and insurance companies. Virtual assistants, chatbots, and robots have revolutionized customer engagement, simplified processes, and speeded up customer acquisition, KYC, and other processes. Advanced machine learning algorithms have accelerated data processing, improved compliance management, and increased security. It helps with profiling credit risk, detecting irregularities, and preventing fraud. Personalization has also become possible with AI/ML, with cross-selling and upselling of financial and insurance products based on customer profile, credit risk, and past activities.
Robotic Process Automation: Robotic Process Automation (RPA) has been key in freeing human resources of repetitive tasks using data to leverage digital systems faster. Data extraction, documentation, and filing are some of the activities that have been delegated to RPA, resulting in improved customer engagement, acquisition, KYC, query servicing, and many other functions.
Data & Analytics: This is going to be a key factor in enabling BFSI players to differentiate themselves from the competition while also improving customer engagement. Personalization, targeted marketing, and marketing promotions will be informed by analyzing Big Data. Predicting trends will help businesses define their strategies for growth better while remaining compliant and secure.
Blockchain: Blockchain will enable the acceleration of analytics in a cost-effective manner, with greater accuracy and transparency in a secure manner. It can reduce counterparty risk, improve verifying financial documents in real-time, enable tracking of transactions, reduce operational risks, and enable real-time verification of financial documents.
Mobile Readiness: Mobile phones have enabled financial activities to be performed at the click of a button. According to one estimate, more than six billion people own mobile phones while there 1.7 billion with no financial access. There is a huge potential for financial institutions and insurance companies to reach out to these people and expand their market base at low costs and effort. Armed with chatbots and robo-advisors, banks and insurance companies can reach out to this virgin market more effectively, with personalized communications more effectively.
Digitech for Technology-Enabled Financial Services
Digitech Labs, a cutting-edge software solution provider with domain and technology expertise, helps BFSI companies leverage digital technologies and disrupt markets with innovative solutions. It can help traditional banks, financial institutions, and insurance companies migrate their legacy systems in a phased manner to cloud-based technologies and become future-ready. It can help new-age BFSI solution providers create cloud-native solutions integrating the latest technologies aligned to their business needs.
The Digitech approach to empowering BFSIs to improve branchless operations, contactless customer engagement, increase operational efficiency, and improve productivity by:
- Strengthening the Core: Leverage automation and innovation to help BFSI companies transition to an automated environment.
- Facilitate Innovation: Digitech uses a Design Thinking approach to solve known problems while identifying potential issues and preventing fruition. We design and build outcom-based automation and AI/ML solutions to overcome challenges faced by our BFSI clients and facilitate growth and innovation.
- Facilitate Collaboration: An enterprise must work as one to achieve the desired goals. Our solutions enable collaboration, learning, and empowerment for knowledge sharing and integrating teams.
- Analytics: We custom-build data engineering solutions for banks, financial institutions, and insurance to leverage structured and unstructured, internal and external data to develop new business while strengthening relationships with existing customers. Insurance companies can gain a holistic view of pre-purchase and purchase information to devise strategies based on customer requirements.
To know more about Digitech Labs solutions for the BFSI sector, visit: https://digitechlabs.com/landing/landing-1-industries-financial-services