More and more fintech companies are pushing into the
traditional business field of banks. In addition, more and more consumers are
using digital online and mobile app channels for their banking transactions.
For financial service providers, this means that they have to intensify their
digital transformation efforts and use technologies such as ML, RPA / IPA and
blockchain. Since, in contrast to other industries, financial service providers
mostly work with structured quantitative data, the digital transformation
offers a multitude of automation options and digital banking products that
enable safe and smooth customer journeys.
Key
technologies and trends
The digital transformation for financial service providers
who traditionally work with branches and offer poor mobile and web banking
services begins with digitization. Although iterative improvements are always
possible, financial service providers are well advised to use the latest mature
technology for digital transformation. However, the level of technical maturity
ultimately depends on the digital strategy and the products used. Process
mining tools show the possibilities for process improvement, which also include
initiatives for digital transformation and automation. The consulting firms
McKinsey and PwC estimate that around 20 percent of business activities can be
automated with currently available technologies. Automation reduces repetitive
tasks, increases the efficiency of processes, for example by shortening the
time it takes to review documents, and avoids human errors.
From
advanced analytics to digital financial assistants
ML algorithms for analyzing collected transaction data,
which have to be stored for years due to regulatory and underwriting
requirements, uncover insights into customer behavior so that companies can
improve the experience they offer their customers. By using advanced analytics,
financial institutions can reach the right customer at the right time with the
right message and the right offer through the right channel. The blockchain
technology makes banking such as investment management, cross-border
transactions, trade finance and capital markets safer. It helps prevent
fraudulent activity, create transparency, reduce costs and increase the speed
of transactions in order to reduce the number of intermediary banks. Just like
other industries, digital financial assistants (conversational AI) are also
very useful for financial institutions in customer service. By implementing
simple chatbot solutions, banks can respond more quickly to customer needs. You
can employ financial advisors and recommend investment options based on the
bank balance and risk profile.
beautifullhouse computerworldblog readwriteart instylishworld getworldbeauty
