Technology is transforming the BFSI sector, providing better reach, customer engagement, and improved customer experience. Digital platforms have enabled speed, efficiency, and transparency to ensure high levels of end-user satisfaction. Let’s see how digital transformation has helped the BFSI sector.
Digitalization of banking, financial services, and insurance (BFSI) sector can change the face of the industry, providing a whole new set of opportunities and enhanced experience for both the institutions and customers. The sector is welcoming digitalization on a massive scale powered by smartphones, smart devices, and digital currencies. Experts predict the digital transformation of the BFSI sector to touch 121.70 Billion USD by 2025.
So, what comes under BFSI vertical? The sector covers all institutions that provide financial products or services and includes insurers, banks, payment portals, stockbrokers, microfinance, and many other related companies. These institutions are recognizing the need for innovations and digital solutions for creating a competitive edge.
Advantages of the digital transformation of the BFSI sector
The internet-savvy millennials mandate a need for BFSI vertical to shift towards digitalization. The process of introducing technology into the core functions of the sector is a continuous one, whereby the focus is on improving process efficiency and increasing the bottom-line profits.
- Enhanced customer experience – Today, the crucial factor behind acquiring and keeping customers is the enhanced customer experience. Digitalization allows the institutions in the BFSI sector to provide consistent brand experience to the customers throughout their interactions with the institution, leveraging on the potential of omnichannel marketing. Customers experience personalized products and services that are designed based on their previous interactions.
- Improves process efficiency – Digitalization enables the introduction of technologies such as digital signatures and smartphone banking. It eliminates the manual and redundant processes and brings down the possibilities of human error. All data including the signatures are captured accurately in the first instance.
- Better decision-making – With digitalization, BFSI institutions have access to accurate and real-time data for informed decision-making. Technology enables data analytics and insights throughout the organization.
- The increased volume of sales – There is a growing shift among the customer’s preferences from traditional banking methodologies to digital platforms. The institutions in the BFSI sector should adopt digital transformation to attract more customers and provide them value-added services ahead of the competition. Digitalization not only helps to increase the customer base but can also serve to retain the customers by providing great service.
- Promotes innovation – Modern technology is an excellent tool for gaining valuable insights on customer behavior and preferences. It provides the required information for decision-making and to understand the gaps in the existing products and services. Digitalization allows the institutions to develop innovative products and services that can serve the customers efficiently and resolve their problems.
- Improve brand reputation – Using technology, the institutions can provide a positive brand experience that is consistent across all customer touchpoints. It also facilitates the promotion of a constant brand image, thorough social media, and other digital marketing platforms. This can build up the credibility of the brand to increase the reach.
- Cost-saving – The institutions can save operational and other overhead costs by introducing digitalization. Cashless transactions, new modes of payment, internet banking, and mobile banking facilities reduce the dependency on the traditional and redundant processes thereby freeing up the resources for productive purposes.
There is no doubt that digital transformation can bring tremendous benefit to the BFSI sector. Many institutions are seeking to digitalize their core processes to leverage the advantages of operational efficiency and reduced costs. Outsourcing of BFSI digitalization is a good idea for the institutions to ensure a seamless digital transformation.
SBL has innovative solutions to meet the digitalization needs of the BFSI sector, developed through years of research and backed by extensive exposure to the vertical. Approach SBL for an end-to-end digital transformation of your organization. Our domain experts provide customized solutions that are a strategic fit for the client’s business environment. Get in touch with our team, today.