A complex environment that is always in the fast lane, the financial services industry is constantly evolving. From the introduction of ATMs to the arrival of the internet, this sector has seen some dramatic changes in the past few decades.
The grand entry of internet banking has paved the way for a great transformation journey that created multiple channels for customers to engage with their banks. Today, customers can access all the banking services on their mobile devices – on the go!
Slowly, this has opened the doors to intelligent banking. Now there are devices emerging every day that hold new consumer data. This data is analyzed and engines use it to make intelligent recommendations to customers, helping them pick a banking experience or choice that’s perfect for them.
Automation is being leveraged by the industry between workflows even as robotics and data analytics improve the customer experience.
Digital Transformation in the World of Finance
The industry today is working towards minimizing inefficiencies within the system and enhancing the customer experience. There are two main factors that trigger digital transformation in this industry: the threat from innovative challenger banks and changing consumer demands.
Consumers are constantly engaging with evolving technologies and are opting for frictionless engagement, where they have access to all services on their mobile or other channels. This need for premium experiences backed by technology is driving digital transformation in the finance sector. This aggressively competitive space is always ready to embrace change to keep up with market trends and ensure that businesses continue to flourish.
What’s needed is speed with no compromise on security. The financial industry is actively adopting technologies such as artificial intelligence, blockchain, and cloud. Organizations combine these fintech solutions to create a better ecosystem that enhances the customer experience and helps in increasing the customer base.
Preparing for digital disruption with Digital Transformation
What are leading financial companies doing differently? Here are the key takeaways:
Being agile: Going digital involves a lot of innovation and disruption, which means being flexible and rapid to adapt and get the job done. A firm’s flexibility and speed are what agility is all about. To stay ahead and take advantage of digital trends, organizational agility is an important factor.
What should BFSI leaders do to ensure agility?
- Improve based on analytic insights and feedback
- Send test pilots to customers for quick feedback and progress faster through failure and feedback
- Make movement of resources and talent more fluid for enhanced operations
- Since the digital ecosystem is always changing, and new ideas are constantly being developed, promoting continuous innovation is important.
Being collaborative: The digital era has increased both customer and employee expectations. With an engaging and fluid work environment, and interactive and rich digital content, meeting these expectations requires teams to work well together.
How should BFSI leaders ensure collaboration?
- Team structures should be flexible to cater to varying business needs
- With abundant availability and accessibility to information, ensuring information security and clarity on access rights as well as decisions is important
Be a structurally distributed organisation: Unlike the traditional position-based decision-making structure, the shift to digital demands a shift in decision making rights as well. Valuable information should be shared with a broader audience for better decision-making and new workflows.
Be bold and risk-ready: To stay ahead of competition from Fintech and technology companies, BFSI leaders should increase their risk-taking abilities to improve digital adoption. This also means better management and flexibility in risk and security boundaries during the digital transformation process. Bold decision-making and risk-taking are essential factors to lead in the digital space.
Low Code in Finance
Low-code multi-experience development platforms enable quicker time-to-market, improved efficiency, and lower costs. This technology helps employees with no technical development expertise create and deploy applications with the help of inbuilt tools like drag-drop and point-click. Low code can help finance teams simplify various activities such as the following:
- Customer experience– Mobile applications built in-house to cater to customer needs like payments and purchase of new services.
- Email bots– Send automated replies to email received.
- Reporting– Be it reorganizing a report, adding new metrics, or gauging performances in a desired angle, managing reporting configuration is made simple without any dependencies on external reporting tools or the IT department.
- Workflow automation– Adapting to business changes is made easier with adaptive automation.
- Business Process Management (BPM)– Improves visibility and tracking, reduces manual interventions, and streamlines process.
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.
Here’s what low code brings to an organization:
- Faster time-to-market
- Improved operational efficiency
- Reduced expenses
- No need to hire experienced developers
- No need to invest in third-party tools
- Reduced dependency on the IT team
Build enterprise grade applications in a matter of days using Neutrinos Low Code Application Development Platform.