Banking industry has come a long way. Today, it is focusing on technology-intensive solutions to improve and optimize its functioning, revenues, customer experience etc. The entire industry is in a digital transformation mode and few things are the bare minimum if you want to stay in the market (for instance, mobile banking).
BFSI (Banking, Financial Services, and Insurance) is an industry term that is used for those companies that provide these services. Among all these services, technology is taking over and companies who make the digital-first move is going to reap all the benefits. There are many technologies like blockchain, AI (Artificial Intelligence), Big Data, IoT etc. doing rounds and have the potential to change the face of the industry if deployed properly.
Some of the major technology trends that are going to reshape BFSI are:
External APIs (Application Program Interface)
Till date, banks have made use of APIs in a closed environment, but now these will connect applications, which also includes everything from mobile apps to the back-end office IT systems. This will help in providing innovative, contextual solutions, but for that, we need open banking. Open banking is nothing but a connected ecosystem between the financial and non-financial entities with multiple underlying service providers.
Use of Artificial Intelligence to Improve Customer Experience
The implementation of Artificial Intelligence (AI) to automate repetitive processes and improve customer service via chatbots is on the cards. BFSI organizations have started simplifying their processes through intelligent automation. This helps in exposing the enterprise data that was earlier trapped in core systems. With accessibility to data, creating services and experiences custom made for individuals is possible and this obviously leads to better customer experience. Also, having the process automated results in much lower costs and better efficiency than hiring employees for repetitive processes.
Mobile Banking to Provide More Functionality
Today, mobile banking is considered as a bare minimum service that any financial institution has to provide. In the coming days, it has to provide more functionality, which is seamless and frictionless. The services that people look forward to having includes consumer-to-consumer and consumer-to-business one-click payments, conversational interfaces, password-free biometrics, offers etc.
Beef Up Security Using Biometrics
Security has always been a prime concern in all financial transactions. The BFSI organizations will have to add new layers of security to their services by deploying next-generation security-based authentication methods. Using biometrics like thumb impressions, voice prints and facial recognition will soon become a norm. Enhanced security features will have a major role in building digital trust among the customers.
Everything from mobile banking to contact centre technology have been taking the centre stage in the BFSI sector. In fact, the contact centres of banks play a crucial role in cross-selling and customer acquisition as elucidated in this white paper, which is a must-read for individuals trying to understand the role that technology has in BFSI contact centres.
BFSI is leaping into the era of innovation by adopting the latest available technologies. In this digital age and an environment that is interconnected, they need to adopt the latest technological innovations to transform from digital to truly digital.
Recommended read: Virtual Assistants: Changing the Service Dynamics of the BFSI Sector