How is Tech creating new value for the BFSI sector?

How is Tech creating new value for the BFSI sector?

Praveen Paulose, MD & CEO, Celusion Technologies (1)

Praveen Paulose, MD & CEO, Celusion Technologies, shares how the tech-geared BFSI sector is simplifying banking operations & enhancing customer experiences

Technology has been the biggest game-changer in the banking and financial industry, profoundly impacting how consumers carry out their transactions. Over the years, it has been the driving force behind any transformation and innovation in the sector.

As a result of these developments, customers began to experience newfound conveniences in how they carry out their financial operations. Simultaneously, banking corporations have enhanced their operations with improved services. All in all, technology has been beneficial for both businesses and customers.
Technological advancements have created new value in creating greater avenues for customer experiences and core operations of banking/financial institutions in many different ways. Some of the most significant methods are as follows:

Digitization : Technology has enabled banking & financial institutions to take their services online. This has allowed customers to carry out different transactions, view their financial information, withdraw money from their savings, manage their deposits, and more – all through the power of the Internet.

In addition, technology has paved the way for many online payment systems to take shape in the digital landscape. Consumers are spoilt for choice, with many applications to use to make their payments. These applications allow them to conduct their transactions digitally without requiring physical cash.

Assistance : When it comes to money and finances, customers, especially older generations, often need help at different points of the process. Technology has had a role in this regard with improved customer experiences. From the simple availability of support via customer helplines to more intricate models such as virtual assistants, customers can now get the help they need with faster response times.

Today, banking institutions also have Customer Relationship Management systems that provide a holistic overview of customer information, making it easier and more efficient to direct support teams to help customers. Newer technology tools, such as Artificial Intelligence, bring automation into customer support processes, assisting companies in gauging customer sentiments, identifying how to address grievances, and responding accordingly.

Inclusion : Technology has made financial services far more accessible to consumers. This is especially true for people in regions that are remote, marginalized, and even underprivileged – all of which are significant obstacles to accessing available financial services. The extensive scale penetration of smartphones in the population has significantly contributed to the vastly increased accessibility of financial services.

Anyone with a basic functional smartphone can access the financial assistance they need. This increased accessibility has helped empower untapped sections of society, making them financially capable and able to access financial services the way anyone else would.

Data security : Customers in the banking and finance industry have greatly benefited from the improved measures to protect sensitive information. Today, many levels of authentication precede any transaction that people want to do for their banking/ finance services. Multi-factor authentication has become a staple for customer security through various procedures such as password entry, fingerprint scanning, and one-time passwords.

Over time, biometric authentication methods such as facial recognition have given users an additional layer of security. Additionally, banking corporations have Data Loss Prevention systems to prevent information from being leaked or accessed by unauthorized persons. Corporations also continuously introduce security patches to repair gaps/ vulnerabilities in their designs, making banking experiences safer for consumers at every step.

Automation:This is one of the most recent developments brought about by technology, wherein various operations & processes have been automated. This has made data analysis, research, and customer service faster and hassle-free. This also frees up human resources in tasks requiring critical and creative thinking due to machine intelligence taking over more repetitive jobs.

More advanced algorithms can automate risk assessment and credit scoring processes, allowing banks to make decisions more quickly. Automation enables periodic electronic fund transfers, direct deposits, cash withdrawals, and more for customer finances.

Technological advancements have paved the way for incremental improvements in experiences for customers and companies. This will continue to push the industry to new heights in the future, with many more tools being developed, researched, and implemented.

(Disclaimer: The statements appearing in this article do not reflect the view of The claims and opinions made in this article are the views of the author.)