Technological innovations are riding the horse of Digital Transformation for the industries including BFSI. Financial institutions going digital have streamlined their processes reducing human efforts and cost. Sweeping through the financial industry, The Digital Transformation has accelerated the competitive landscape. Stepping into the digital era, banks have started embracing technological innovations to reach and engage customers on social channels.
The financial institutions have reduced their operating time in acquiring new customers by moving their infrastructure to the cloud. The BFSI industry is focussing on empowering digital technologies to boost its operational excellence.
Let’s see how the BFSI sector embarks its Digital Transformation journey.
- Risk Management with AI
Banks and Financial institutions have always been the targets for hackers in search of monetary gains. Stay aware – your bank might be the next target. Risk management plays a vital role in the BFSI sector. Stepping into the digital era banks are investing in technologies like Artificial Intelligence to identify risks and frauds. According to an expert report, 32% of financial institutions are using AI to minimize financial risks and frauds.
In the digital era, AI is the game-changer for banks and financial institutions as it enables potential solutions to identify fraudulent activities. AI solutions evaluate the unstructured data fuelling the financial institutions with reliable data avoiding losses.
- Customer-Centric Service
Customer retention and strategies to acquire new customers are crucial for every industry including the banking sector. The technological advancements have enabled the BFSI sector to personalize their services to the customers by analyzing the customer data. The financial institutions are using digital technologies to closely observe customer buying behavior and find out what the customer is looking for.
The financial institutions formulate their service offerings according to the customer requirements rather than using their predictions. To offer personalized services banks are constructing customer-centric architecture, consolidating their data from all banking software. Identifying customer financial journey and anticipating customer needs, banks have digitized their customer-centric approach to proactively offer value-added financial products.
- Stay Innovative and Adapt to Trends
The financial institutions have marked their digital transformation journey by embracing technology and market trends to scale their success. The banks are upgrading themselves with technological innovations to cater to the growing demands of customers. Digital technologies have transformed the traditional way of banking to a better version.
The rise of shopping portals and integrated mobile applications have opened a gateway for banks to reach out to their potential customers. The financial institutions are embracing the new world technologies maintaining pace with the competitive world.
- Leveraging Voice Assistants
The financial institutions are deploying AI-enabled chatbots to answer customer queries and resolve their issues. The financial institutions have now replaced the two-way communications like emails and phone and texts with virtual assistants. An official report says by the end of 2020, 85% of customer service interactions in banks will be handled by chatbots.
Banks have deployed chatbots to offer instant conversational and personalized experience to its customers delivering a premium service. The technology empowers the customers to connect to the banks on their terms.
Accelerating its Digital Transformation journey, the banking industry is embracing the technological trends. The digital technologies have enabled the BFSI sector to offer a premium experience to its customers with an automated customer-centric approach. Big data analytics have made it quite easier to study the spending pattern of customers and cater to their requirements. Virtual assistants resolve customer issues without any delay. The Digital Transformation era is empowering the BFSI sector to enhance its business growth.