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Few months ago, we wrote about digital transformation in the Finance industry on our blog. In this post, we shall dig deeper to study the various technologies that the financial sector should adopt to grow and sustain in the long run.
According to a KPMG report, 57% of banking institutions are only planning to digitize their services. But, by the time this 57% build their applications, they will be outdated by the 43% who are already into banking transformation.
If a bank is performing well, why is there a need for change? Well, digital transformation across the global financial industries is largely spurred by two key factors- growing customer demands, and the emerging threats from other banks.
Changing times for Banks
82% of the millennial smartphone users prefer mobile banking. According to a white paper published by Infosystems, mobile banking wearables will be in use by the end of 2018.
Gone are the days when banks, like every other industry were focussed on products and the systems they used were also product driven. Today, customers are calling the shots, they want information at the click of a button on their smartphone or other devices, and only those who meet the customer’s demands are likely to survive. It includes innovation in products and services, consistent customer service and adoption of digital tools to offer better experiences.
The ultimate solution to overcoming the challenges is a combination of culture, talent [resources], and technology. While it is true that the financial industry is not afraid of changes or experiment, the initiatives and strategies need to be driven across stages across the management levels [Refer image below]. These include- constantly innovating, collaborating with other companies and embracing fintech.
As we move ahead into the era of Banking 3.0, the role of digital technology and big data/analytics are slowly starting to shake up the financial [services] industry. Investors firmly believe the future belongs to fintech and new technologies along with new business opportunities are here to disrupt the business and push the envelope.
Here are the top 4 technologies that the financial sector is adopting,
Artificial Intelligence is a technology element that has been creating waves over the last few years. It is the technology that applies to data, helping people gather insights that were earlier unavailable with little to no human intervention. All those in the financial enterprise utilize the automated tools to make sense of the gathered data and offer their customers’ better-informed suggestions and personalized products as well
Data & all things related
The business across the financial sector relies heavily on data. Therefore, it is quintessential to have differentiating factors that will redefine the way the financial sector operates in the future. What is the best method to use the data gathered from customers to offer them better heightened services? How do you assess their lifestyle patterns or spending style? Can the data be used to detect crimes or even fraud? This is where advanced data analytics solutions come into action, answering all the above questions, and giving the company an edge over their competition. The data gathered from various sources is collated with ease, and can be analyzed to generate reports, which are made available to all parties involved.
Cloud & customer experience
One cannot talk about digital without mentioning “Cloud”. This has become the default model and technology for all companies, helping them move their data and work to the cloud space. Not only does this speed things up, it allows customers and their connection in the company to access the data from anywhere at any time across any device. Cloud technology helps optimize cost and enables data centers to function efficiently without any delays or hiccups
A new term for some, but familiar for many, Blockchain is growing slowly across the industries. The Financial sector is the first to adopt this technology as it provides an autonomous method for all transactions to be completed. With digitization and automation becoming an essential element across all business processes, both in the front-end and back-end, Blockchain will play an important role when it comes to tracing the transactions in a self-autonomous model.
Banks do have access to customer information (demography, place of residence, lifestyle, spending habits and more). When this data is used in the right manner, while ensuring regulations and privacy concerns are adhered to, banks can gain insights that are valuable to companies outside the financial services as well. It is therefore upto the enterprise to assess, evaluate and use the right technology to enhance customer service, subsequently seeing visible business growth.
At Neutrinos, we have helped several companies in the financial sector kick-start and elevate their digital transformation journey. Industry leaders have already leveraged low-code platforms and are scaling their businesses rapidly by boosting customer experience. Low-code MXDPs are fueling digital transformation journeys by enabling businesses to build enterprise grade applications in-house, at half the cost. Connect with us to know more-