The word ‘Technology’ has grown multi-folds during the pandemic. Few industries such as IT and Electronics held a substantial part of technology and innovation. But the Pandemic changed everything and turned technology into a transformative force for every industry. With the beginning of an era of remote and hybrid working, the advancement in technology has reached far beyond the boundaries of the selected few industries.
A significant push was experienced by the BFSI industries with the onset of advanced digital technologies to cater to the rising need of the consumers. Technology has invigorated the BFSI industry, particularly in the aftermath of the pandemic’s disruptions. The industry went under a massive digital transformation not just in product portfolios but also in the customer service segment. While undergoing significant digital transitions, with customer experience at the forefront amid the epidemic, employee safety, productivity, engagement, and retention are also important priorities. Businesses are increasingly moving to the cloud to take advantage of new capabilities, scalability, and flexibility.
The Need for Digital Transformation
ENHANCED CUSTOMER EXPERIENCE
The need to provide an effective customer experience with minimum workforce availability thanks to the COVID-19 outbreak, expedited the industry to shift towards digital channels, the cloud, and self-service customer care. BFSI firms are concentrating on increasing digital customer and employee onboarding, online payments, proactive notifications, payment reminders, self-serve access to account information, and faster loan approvals.
FUTURE-PROOFING AND RESILIENCE
During the pandemic, the BFSI industry suffered a severe failure as the workforce migrated to remote working throughout the world. The industry’s need for a comprehensive digital transformation was prompted by a lack of suitable technology and competent staff to deliver world-class customer service. The digital transformation will assist in attracting talented individuals to the business while also building resilience against potential setbacks and developing capacities to offer continuous CX even with limited labor availability.
The spectrum of emerging security risks grows in tandem with the growing need for digital transformation in the business to improve customers’ access to 24*7 BFSI services.
A threat to consumers’ valuable data and funds will result in a reduced client base, sales, and conversions. In the event of a security compromise, institutions will suffer massive monetary and reputational losses.
The BFSI industry advanced to the next phase of transformation as the businesses around the world shifted to a remote working model to stay in line with the growing needs of the customer without affecting their ease of access. Here are a few trends that have evolved in the BFSI industry and are here to stay:
The Rising Trends
AI/ML Assisted Services:
AI is changing legacy structures, traditional operating methods, and banking procedures. Advanced machine learning algorithms analyze data quicker, aid with compliance management, profile credit risk, and even red flag abnormalities to detect fraud even before it happens.
While AI enhances customer experience with virtual assistants and streamlines cumbersome operations, by processing large amounts of data, customizing customer experiences, and contributing to revenue development, AI and machine learning also save time.
Robotic Process Automation:
In the BFSI industry, this degree of RPA has become crucial since it automates operations without being intrusive, lowers mistakes, and accelerates digital transformation. Robotic Process Automation clears backlogs and takes on repetitive and high-volume operations like paperwork, filing, and data extraction to assist overworked personnel. RPA offers a wide range of capabilities and may be used to automate customer service and operations in multiple sectors.
Big Data & Blockchain:
By assuring cyber security and handling large amounts of unstructured data, Big Data improves customer faith capital. Institutions can provide consumers with tailored insights into their investments and much more thanks to instant clarity and predictive analytics. Blockchain processes allow cost-effective, quick, and accurate evaluations, data integrity, transparency, and secured data distribution to the BFSI companies.
Clients prefer managing their accounts online as physical connections have been infrequent since the pandemic, and Big Data not only gathers information that is useful to them but also protects them from threats. Big Data excels in a detailed analysis, compliance verification, auditing, and feedback management.
Digital Transformation Shaping the Industry
Robust Security Architecture
A major benefit that digital transformation enables is the extended security of client database and enhanced resilience to untimely setbacks as a result of hacking, phishing and disrupting cyber-attacks. With the help of Blockchain and AI/ML, a robust security architecture, enhances consumers’ trust and prevents untimely financial losses due to cyber-attacks. This results in higher sales conversions and improved customer retention.
Digitally enabled interactions grew more important than traditional ways when the workforce switched to remote employment. Many businesses, particularly BFSI firms, have begun examining value-generation technologies as a way to increase their operations, reach, and profits.
This new ecosystem strives to empower its stakeholders by assisting in the improvement of the customer journey across multiple contact points. The ecosystem not only expands the distribution network but also adds value to the company and enhances the consumer experience.
Engaging Top Talent
BFSI firms want employees that can adapt and persevere in the face of adversity. As a result, they require skills, education, and training to increase productivity and meet desired corporate objectives. A digital transformation plan must include marketing and sales enablement. It aids in the effective execution of communications necessary to drive sales and engage customers across several channels. It will also help you offer value to your workers by keeping them motivated and engaged with the company.
Purchasing decisions of customers are heavily impacted online as the digital purview widens. As a result, the demand for a well-integrated platform that allows users to access different channels such as websites, social media, SMS, and email from a single location has grown.
The omnichannel strategy aids in the creation of a tailored interaction experience for customers, resulting in a greater degree of customer satisfaction. It also inspires sales channels, who are given the tools and training they need to meet their customers’ demands and create a consistent experience.
Superior Customer Service
The rapid transformation has raised customer expectations for a quick and convenient customer experience. With all the information at customers’ fingertips at all times, BFSI firms prioritize a premium experience both offline and online for their customers. Many public sector BFSI organizations built digital apps and digitized offline procedures to improve the customer experience while handling problems more quickly and effectively.
Customization is a vital advantage in the BFSI business for companies that prioritize it as an important consumer engagement strategy. Developing a personalized service structure is currently approaching a new phase, where consumer targeting and engagement are highly influenced by the online interests and behavior of the consumer. It aids in increasing client lifetime value, increasing operational efficiency, and ensuring long-term viability.
The Road Ahead
As an industry, we must leverage the need for digital transformation more in 2022. As the remote working model begins to shape the new-age corporate culture, the banking and insurance industry needs to equip itself accordingly to develop a wider reach and cater to the rising needs of the customers now, allowing them access to the best quality services at the comfort of their homes.
Headquartered in the United States, Axcel Beck Consulting is a global technology integration and consulting firm pioneering the delivery of innovative and unmatched digital transformation solutions for banking, financial, and insurance businesses. We enable the digital transformation journey and assist in navigating the banking and financial services industry’s future by collaborating with BFSI. Our innovative solutions and digital capabilities enable you to embark on a digital transformation based on integrated, contemporary platforms that will help insurers achieve long-term development by providing exceptional client experiences. To provide digitally connected business processes and domain-centric solutions, we rely on a collection of cutting-edge technological platforms. We collaborate with you from idea through execution to build solutions that improve performance, efficiency, and quality.