With the outbreak of COVID-19, Digital Transformation has created an overwhelming buzz across the business world including the BFSI sector. Digital players in the finance industry have resolved the customer’s struggle to get access to the funds. Technological innovations have paved the way for new services disrupting the traditional ones.
Transforming the traditional banking processes, fintech has emerged to be the most effective lending channel. Easing the common person’s struggle to get access to funds, fintech has unlocked various opportunities to trap the huge volumes of substantial customer databases leading to a strong digital foundation.
What is the Role of Digital Lending Platforms in the Growth of the Indian Economy?
India being one of the fastest-growing economies, Fintech platforms are scaling up at a greater position. Delivering a wide range of market opportunities for both innovative and traditional lenders, the new-age lending platforms have catered to a large segment of online banking customers.
The COVID-19 induced lockdown pushed the business world to embrace Digitalization to compete in the Digital World. FinTech’s have enabled transparency of financial requirements and services catering to convenient access eliminating the need to visit bank branches.
Capitalizing upon the requirements and pain points of consumers, FinTechs have offered quicker turnaround times on digital lending platforms than the Traditional system at banks. Expanding the existing capabilities into the Digital realm, FinTechs have accelerated the Indian Economy to get back to the growth trajectory.
What are the Digital Transformation Trends in the Finance Industry?
- Mobile Banking
Mobile Banking reduces the need to visit brick-and-mortar banks enabling customers to conveniently transfer funds, deposit checks and apply for loans through mobile devices. Online banking ensures 24×7-customer access to financial services reducing the delay.
- Big Data
Big Data plays a crucial role in the finance industry to process the data and derive analytical solutions serving the customers effectively tailoring the services based the customer insights.
- Mobile Applications
While the banks are digitally transforming, third-party financial service providers are also competing with the banks to deliver customer excellence. Banks are integrating third part mobile apps delivering enhanced services ensuring transparency and eliminating the need to have an intermediate SPOC.
- Automated Wealth Managers
AI-enabled Automated Wealth Managers use complex algorithms to calculate the best investment opportunities, enabling the financial institutions to achieve business objectives.
Banks are leveraging FinTechs to deliver enhanced finance services ensuring a 24×7 Omni-channel banking experience. Revolutionizing the finance sector, fintech like customer service Chatbots, expenditure tracking, and online budgeting are enabling exuberant customer support.
What are the Benefits of Digital Transformation in the Finance Industry?
- Omnichannel Experience
Omnichannel banking experience delivers convenient financial services to the customers on their preferred channel attaining customer loyalty. Delivering anywhere and anytime access to the customers, the finance industry is ensuring seamless interaction between the customers and their financial institutions across multiple channels.
- Creating Personalized Banking Experience
Financial institutions are deriving customer insights from a huge volume of data and are tailoring the financial services based on customer needs. Tailoring customer-centric services enable financial organizations to enhance customer engagement and gain a competitive advantage, differentiating their services from similar institutions with the same services in the industry.
- Build Trust with Enhanced Security
A secure banking experience helps gain customer’s trust and loyalty towards the financial institution. Driving on a Digital Transformation Journey, the Financial Institutions confirm transactions with an interactive push-button and send verification codes. Digital Technologies have helped the Finance Industry to maintain the highest security standards with two-factor authentication.
Accelerating the acceptance of Digital Technologies, the FinTech sector has resolved the customer’s struggle to access the funds conveniently. Transforming the traditional processes, Digital technologies have unlocked vast opportunities leading to a strong digital foundation in the finance industry.
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