One of the most innovative things that came up in the banking sector last decade was internet banking. This revolutionary change in the banking industry has introduced many new products and innovations that have been constantly shaping the BFSI industry. “Digital disruption” in the Banking, Finance Services and Insurance is no more a buzzword but is far beyond that. The adoption of technology is more towards creating “User-Friendly” or “User-Centric” solutions that help to retain, attract, and keep the consumers engaged with the industry. A disruptive wave is been experienced across the industry, and so there is not a lot of time for companies to wait for the perfect timing to jump on the bandwagon…the perfect time to build futuristic and resilient technology solutions is “NOW.”
Technology Implementation in BFSI Industry
The first phase of technology adoption was Internet Banking, banking applications, social media, mobile, cloud, etc. and all of these changed the face of the BFSI industry for good. However, the second phase of digital disruption is here. Technologies such as Artificial Intelligence, RPA, Blockchain, Shared infrastructure, Distributed Ledger System, and IoT are all set to have a deeper change within the industry. Most organizations have started with the implementation and migration to many new services, but there are still many waiting for an opportune time. If technology has changed the industry for good, then why are many BFSI industries hesitant to go the whole nine yards?
Choosing Between the Right Technology Solution
Due to inadequate knowledge on several solutions available today, many CIO’s and IT Decision makers hesitate to make a decision. Apart from identifying which technology or solution works best for the organization, the trouble is also to find the right technology partner experienced with the BFSI industry. While some are not sure about the outcome that a solution can deliver, there are still others do not see the value of “disrupting” the current setup. With cutting-edge technologies such as Artificial Intelligence, Analytics, Cloud, IoT, Automation, and the likes, the concern is not just about what is trending technology…rather, which technology solution is futuristic and resilient at the same time.
BFSI Industry: Digitization Driving the Companies
From merely being a feature, Technology is redefining and reshaping the BFSI companies in our times. The newer generation does not even understand the concept of standing in a queue to update a passbook or get a bank statement. Customers of BFSI companies are having a seamless experience as everything is being shifted from a physical location to their Mobile Screens. Nowadays, one can manage their banking, financial services, and insurance requirements from the comfort of their homes. Digitization has got users connected the industry at a level like never before. As technology advances, the need for digital transformation becomes all the more important. Companies operating in the BFSI domain cannot afford to lose out on riding the technology wave. A complacent attitude or approach towards the existing technology solutions only means trouble in the long term. Business leaders, CIOs, and all the C-Suite should take Building Futuristic and Resilient Technology solutions as a priority.
In this blog, I would like to share how companies today can leverage some of the trending technologies and build for the future.
Blockchain in BFSI Industry
Basically, blockchain is a detailed database about every bitcoin transaction that takes place. As we know that 45% of financial intermediaries such as the money transfer services and stock markets are prone to financial crimes. Most of the banking systems are built on centralized databases, and these are more vulnerable to attacks from cybercriminals. A hacker when attacking the database enters through one channel and gets full access to the other resources as well. Blockchain, on the other hand, is resilient and futuristic technology when it comes to reducing the cybercriminal activities.
RPA, Artificial Intelligence, and Big Data
Give the customer what they want and they will never leave you. Well, the first sentence makes sense in every business but it is all the more important for BFSI companies. With so much competition going on, every financial institution is in the race to attract, engage, and retain the customers to their business. But how will you attract someone if you do not know what they are looking for? How will you retain millions of users without physical presence everywhere? How will you understand what makes them stay on your services? Well, these technologies have what it takes to work wonders when applied right.
For example, Artificial Intelligence when coupled with RPA can perform not just simple but complex tasks that require decision making or expert judgement. All of this can be accomplished at a great speed, a greater scale, and a much greater accuracy. Why would a BFSI company keep their operations slow when these technologies are designed to drastically speed up their processes?
Customer Relationship Management
In the recent past, there has been a surge in our BFSI clients requesting for CRM to be implemented within their organization. This is hardly a new technology but as the focus shifts to better user experience, efficient CRM software has become a need of the hour. An efficient CRM is a primary tool to continuously reshape the face of an ever-evolving BFSI company. As a company takes active steps in keeping up with the customer insights and providing reliable solutions to them, it becomes easier to retain a customer. When customers experience a great level of service, the retention rates will naturally increase.
Boosting the sales is one of the primary goals in every company and an efficient CRM helps the companies with sales management and custom made modules that help in strategizing and executing right.
Custom Mobile/Web Application
Customers need fast and they need good. Gone are the days when they could wait up for the banking, finance or insurance company forever for a reply. The answers to queries, solutions to problems, purchase decisions, and the likes need to be made without losing a lot of time. Although many companies do have their own application, the question remains, is it effective? Is my company’s application effective for my customers? Is it making my customer’s lives easy or is it only adding the not so needed sophistication? While there are several security protocols that need to be implemented and maintained, it is also important to ensure that the experience of using the application doesn’t tire out or annoy the user. This is where it is important to re-look at the current application from making it futuristic and resilient.
Most BFSI industry leaders are reluctant to disrupt the current setup due to a lack of clarity on the organization-wide impact of the change. But I believe that rather than taking reactive decisions as and when there is a need, the C-Suite executives should re-look at the current mobile application development efforts with the future in view. Experienced Mobile and Web application development companies with exposure to BFSI nitty-gritty will be the right solution partner to choose from in the digital transformation journey.
Technology is Redefining the Future: Are you Ready?
Customers are increasingly putting their trust in technology, take chatbots and robots for example. In just a few years, it is only the technology that will be driving the BFSI industry. If we look at the trend in technology just a few years ago, it was a matter of curiosity and research on how a particular technology operates in the BFSI environment. However, now it has become the driving force and is redefining the future of this industry. If you are not ready with the solution when the market is booming then it may be too late to reinvent the wheel all over again.
It is crucial to retrospect and plan for the future, and implement the technology that is right for your organization.
Walking Tree Technologies in BFSI Industry
Walking Tree Technologies has 10+ years of IT Services and Support Experience. We understand the several challenges that BFSI Industry is facing with technology implementation. We create custom technology solutions based on your specific business needs. We operate on a global scale and understand the nitty-gritty of banking, finance services, and insurance industry. We would be happy to hear from you and discuss how the right solution can help you prepare and plan well for the current and future business needs.