
Category: Financial Services
4 mind-blowing digital transformation trends banking sector is expecting in 2020
Because
of the modern and cutting-edge technology, banking and financial services
sectors are in the urge of transformation. Gone are those days where people
used to drive all the way to banks for withdrawing money or manually balance
their checkbooks. The invention of Financial Technology (Fintech) has made
managing the finance simple and access to all kinds of accounts just a click
away.
But
new mobile apps are not the only technology that is transforming the banking
and financial service sectors. Banks and various other firms are using modern
technologies to enhance their customer experience, streamline their processes,
and expand their services. Incorporating artificial intelligence, data
analytics, and blockchain technology, the banking sector is successfully
leveraging digital transformation. Below are 4 digital transformation trends that
banking and financial service sectors are expecting in 2020.
1.
Artificial intelligence will make a huge impact in the financial sector:
Almost
every sector has experienced the impact of artificial intelligence in their
business, and the financial sector is no exception. Some of its uses have been
around for a while, for instance, using AI and predictive analytics to
determine whether a customer is eligible for pre-approved credit cards or
loans, but this use has expanded because of digital transformation in the
banking sector.
AI-powered chatbots
can help customers in providing financial advices, aids in fraud detection, and
can even guide them in investment related issues. A study conducted by Accenture discovered that
54% of bank customers needed tools that can help them in monitoring their
budgets and make real-time adjustments. 41% of customers state that they are
ready to take financial advice from artificial intelligence. Personalized and
real-time advice is a need that’s only growing, and AI will drive these tools
for banking and financial firms.
The Australian and New Zealand Banking group deployed robotics process automation in their systems and observed 30% cost savings in
some functions. The group automated more than 40 different functions, releasing
staff to take on more complex tasks. As the technology like RPA is evolving
regularly to become more efficient, financial services firm will figure out
more ways to capitalize.
2.
Maximizing the use of data analytics:
The
banking and financial sectors are leaders in adopting data analytics in their
business operations. As the technology has expanded with the Internet of Things
and various digital devices, there is more information available for banking
and financial firms to track. Today, gathering information of any customer can
be done by the swipe of a credit or debit card, allowing businesses to easily
detect irregularities and better assess risks.
In recent study, IBM found that 71% of banks and financial organizations that used data analytics said that it gave them a competitive advantage. Banks can use the insights of their customers’ behavior to enhance the branch experience. Enterprises will find new and innovative ways to use this information for tailor products and services to their customers.
3. Resolving security issues using Blockchain:
For a
long time, banking and financial service sectors were planning to integrate
digital transformation into their systems. On the contrary to cryptocurrency,
the technology is ready to use for advanced security solution. Banks can
incorporate multiple points of verification built into every transaction. This
can be advantageous for the people who are transferring a large amount of
money.
Blockchain
also saves money. There’s no intermediary to charge fees because the technology
makes the peer-to-peer transfer in a decentralized network. Right from monetary
transactions to transferring contracts, banking and financial firms can utilize
blockchain technology more as popularity grows.
4.
More bank branches will adopt digital transformation:
Now
that mobile banking has grown in popularity, banks are finding new and
innovative ways to enhance the branch experience. Branches might not be able to
compete with the convenience of customers having easy access to all their
accounts in the palm of their hands, but banks can add value to the act of
physically stepping inside the branch.
Digital
signage can enhance the interactive experience to the branch visitors. Mobile
devices can help customers with certain tasks to navigate through processes
quickly and efficiently. Employees can carry out various operations of banks
with iPad devices and helping people anytime anywhere. As customers prefer
online banking, branches can harness cutting-edge technology to establish
better-in-person experience.
Conclusion
Digital
transformation can make remarkable changes in the financial services industry
and benefit society. It can also take over individual banks’ legacy systems,
enhance operations, improve efficiencies, and increase control. For the last
two decades, KCS is helping the banking and financial sectors in automating
various operations of their businesses. Our digital transformation consulting
team will guide companies to invest in the right technologies that would meet
with their business needs in best way.
Recent posts
-
KCS Joins Forces with Biarca on Cloud Security, Announces Completion of Strategic Acquisition
March 30, 2022
-
Krish Compusoft Services (KCS) appraised at (CMMI)® Maturity Level 5
November 04, 2021
-
KCS commemorates its 20th anniversary with a series of exciting activities and announcements
August 15, 2021
Articles
-
How Utilities are Adapting to the ‘New Normal’ Post Pandemic in the Realm of Customer Experience (CX)
February 02, 2022
-
How Enterprise Logic Apps Create Business Value for Azure Users
November 15, 2021
-
Accelerate Your Journey To Smart Manufacturing Transformation - The Ecosystem Approach
October 26, 2021
Global Presence
For 360o business innovation across the globe, get in touch!
-
United States
+1 855 527 7890 | contact@kcsitglobal.com
-
India
+91 95 1088 0333 | info@kcsitglobal.com
-
United Kingdom
+44 7749 006 955 | sales@kcsitglobal.com
-
South Africa
+27 82 450 4068 | bertus@kcsitglobal.com