Importance of Digital Transformation in the BFSI industry

So, we have been hearing a lot of talks about Digital Transformation nowadays. Every sector, we repeat every sector is too much excited about the new horizons digital transformation is showing us. 

It’s true that till last year, nobody emphasized on Digital Transformation of their organization that much. But during this COVID19 pandemic, everyone actually understood the value of Digital Transformation. And which industry is getting benefitted the most from Digital Transformation?

Of course, it’s the BFSI industry!

But the question is, how?

In this blog, we are going to explain why the BFSI industry is in dire need for Digital Transformation, benefits of Digital Transformation in the Banking industry, and the skills one would be needing to digitally transform the BFSI industry completely. But first, let us tell you the current scenario of the Banking, Financial Sector and Insurance.

Digital Transformation for Banking Industry At This Hour:

As this 2020 pandemic has completely boycotted us from socializing, Banking and Financial industries are forced to move to digital platforms completely. An article from thefinancialbrand” shows us how banking continues to introduce different technologies in so many areas in 2020:

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“Americans are turning to mobile banking as a way to take control of their finances and plan for their economic future,” states Ryan Caldwell, founder, and CEO of MX. “With increased consumer engagement across mobile banking applications, financial institutions have the opportunity to not only deliver great user experience but also to provide meaningful advice and guidance that’s critical to the financial well being of consumers … especially during times of economic uncertainty.”- he added.

But is it really possible? 

If it is, then how?

Let’s check some of the strategies the Banking industry tends to follow.

Digital Transformation Strategy in Banking Industry

There are like n number of technologies available nowadays that can help digital transformation grow rapidly. But for now, banking industries are emphasizing on these following ones:

Artificial Intelligence:

Apart from chatbots or virtual assistants, AI can be useful in data analysis and security. For example, it can help identify money laundering by analyzing customer data in a pretty short amount of time.

Blockchain

The execution of blockchain in banking can bring about a superior interface, more exactness, and made sure about information and exchanges. Also, blockchain arrangements will make exchanges and various activities straightforward, encouraging cooperation. There will be no requirement for the intermediation of the outsiders, in this manner raising the degree of trust from the clients. It can likewise impact cloud technologies and move to decentralized ones, which will bring about higher insurance of the information and assets.

Internet Of Things

IoT is useful with real-time data analysis, along these lines makes the client experience increasingly close to home, and banks can give exclusively customized offers. In addition, on account of wearables, clients can without much of a stretch and flawlessly make contactless installments. Aside from this, IoT is useful with risk management and access to the platform; the confirmation procedure can be bolstered by biometric sensors that make get to increasingly make sure about and ensured.

Cloud Computing

Cloud computing is another innovation that can assist manages an account with getting progressively effective and allows them to give more advancements, just as have better efficiency, improve activities, and immediately convey items and administrations. Cloud computing, just as IoT, can help with risk management and make a safe situation for the clients and internal bank frameworks.

Now, let’s look into the facts that why Digital Transformation is important for the banking sector.

The Need Of Digital Transformation In BFSI:

“Thefinancialbrand” conducted a survey and asked the employees of the BFSI industry a few questions. The result of the survey was outstanding:

Source

 

So it’s quite evident, the need for Digital Transformation is not yet a clear picture to most of them. Hence, we listed out 5 of them for you:

  1. Acquisition of new customers is cheaper and easier
  2. Digital transformation enables financial institutions to know what the actual need of people. 
  3. Digital Transformation allows the banking sector to act upon technology and market trends and scale these efforts with gradual milestones.
  4. The trustworthiness of customers is easy to gain online
  5. Digital engagement is key to optimize the consumer experience

The digital-emotional connection in the banking industry

Consistently, financial farms put billions of dollars in showcasing, and client experience enhancements that don’t create noteworthy outcomes. Products and services are commoditized and advancements are fleeting. Strategically pitch proportions are stale, and forceful deals strategies and portions are not, at this point a suitable procedure. Establishments must choose the option to draw in more clients and serve a greater amount of their needs. Yet, how?

The way to differential development is by associating with customers at an emotional level. Speaking to clients’ most profound feelings is a long way from another thought – yet Big Data and technology currently permit what was once showcasing workmanship to become business science. To do as such, clients’ feelings must be impartially characterized, estimated, and displayed to anticipate the most beneficial practices. 

Enthusiastic associations can drive increments in client lifetime estimation of as much as 800% for firms. An emotional association happens when clients interface their most profound inspirations, qualities, and desires to a brand.

Source

Now, let’s check out the skills you’d be needing to spice up the digital transformation in BFSI industry!

Skills Required for Digital Transformation in BFSI:

In the era of digital transformation, Mastering one subject is not enough. As stated by the Institute of Banking and Finance Singapore (IBF), being flexible is key to withstand the ever-evolving digital changes in the financial industry. So if you want to top there, these six skills are must-haves:

  1. Understanding the application of new technologies
  2. Applying data analytics to decision making
  3. Skilled at human-centered design
  4. Agile Thinking
  5. Engaging customers effectively through omnichannel
  6. Understanding and managing risks in the digital world

And to acquire these skills, you’ll need a deep digital transformation learning.

Now, how to learn digital transformation? 

Here’s how:

Digital Transformation Certification:

There are so many technologies you can learn in order to bring digital transformation to the BFSI industry. But we suggest you go for Certified Digital Transformation Officer Certification.

Why?

Because it’s an exclusive collection of 5 different certifications:

  1. Agile Scrum Foundation Certification
  2.  DevOps Practitioner Certification
  3. Cloud Computing Foundation Certification
  4. Cyber Security Foundation Certification
  5.  Data Science Professional Certification

After the completion of this certification, you’d be accredited to work in the digital transformation team anywhere across the globe.


Conclusion:

Digital Transformation in BFSI Industry is quite evolving, hence holds a lot of career opportunities within. Once you learn all about digital transformation, you’d be happy to be responsible for a new revolution of your organization in no time.

Feel free to drop your queries in the comment section below. We will be thrilled to hear from you!

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