Technology is transforming the way organizations operate and deliver products to customers in a variety of industries, most notably banking, financial services, and insurance (BFSI).

Many novel approaches and technology are being integrated into financial activities to aid in the development of smooth and secure operations.

Under BFSI, considerable technical breakthroughs are being made in areas such as customer service, online payment, and fraud detection around the world. As a result, all financial institutions are stepping up their efforts to innovate and embrace the disruptive nature of IT-enabled services, embracing new technologies such as Cloud, Analytics, Automation, Artificial Intelligence, and the Internet of Things. This highlights the need for more IT-enabled service providers in the financial services industry that can deliver customer-centric and advanced options such as data center virtualization, server-storage consolidation, and optimized communication networks.

Automation of Robotic Processes

Banks and financial institutions can use Robotic Process Automation to develop pre-programmed processes that can self-learn from existing data patterns and business choices. It has the potential to halve their overall administrative costs while also boosting the quality and agility of the banking process.

In the banking industry, Robotic Process Automation can help with compliance by automatically creating auditor reports and keeping track of the automated procedures. Robotic Process Automation, in conjunction with cognitive automation, can assist banks in dealing with the future challenge of data overload.

ATM upgrades

After ATMs were introduced, the banking industry’s experience changed dramatically. Customers have been able to withdraw cash from ATMs at any time and from any location. They were able to withdraw funds without needing to wait for banks to open. If the introduction of ATMs wasn’t enough, these machines were modified so that they could be used without a card.

Using updated ATMs has these key advantages:

• Security

Customers would no longer need to carry their cards to ATMs if ATMs were upgraded. It eliminates the possibility of a card being stolen. It would also aid in the prevention of another type of fraud known as card skimming or card cloning, assuring greater security.

• Avoid hacking of ATM

It’s been difficult to keep track of ATM passwords and pins. Customers will no longer need to remember their passwords or pin numbers as a result of the modification.

• Fewer trips to the bank

When an individual wished to know his or her account balance a few years ago, they had to wait in bank queues at their various bank locations. However, with the widespread adoption of technology in banking, it has become quite simple to access one’s bank accounts from anywhere and at any time.

• Quick Transactions

Money transactions have become more efficient, and any type of bill may now be paid, unlike in the past, when a cheque was required to make a purchase, followed by the waiting game. With the introduction of plastic cards (credit/debit cards), internet banking has become much more user-friendly, and paying bills has become much easier. Another fantastic feature of internet banking for paying bills is the ability to give the bank standing instruction for a payment that must be made every month. As a result, banks will move funds from your account without notifying you.

• Customer Service

Customer service has greatly improved as a result of technological advancements, and it is likely to continue to improve. Chatbots’ contribution to customer service has been notable, and its capacity to deliver effective customer care 24 hours a day, seven days a week has benefited customers. Banks use chatbots to understand their clients’ demands and then present them with additional services.

• Fraud detection

Prior to the adoption of current technologies in the banking and financial sectors, it was far more difficult to detect fraud. After a few years, technology was applied, and the system was able to detect fraudulent transactions. Then, with the advent of artificial intelligence (AI) in the banking and financial industries, fraud detection has never been easier.

The following are the most important BFSI technology trends that will propel this industry forward:

Fintech

Financial institutions should be able to provide a digital platform that is flawless. The future of the fintech market appears bright. The ideas at the heart of Fintech are data-driven analytics and hyper-personalization. The dynamics of the BFSI market have been disrupted by fintech start-ups. Banks and other financial service providers must modernize their operations. Accelerated growth can be achieved through embracing digital technology.

Mobile Banking Technology

Mobile banking has been around for a while. Customers will, nevertheless, gravitate toward their mobile phones to conduct banking transactions as mobile technology advances. Other advancements include mobile biometrics, peer-to-peer payments, and voice-based searches, in addition to the rising use of mobile wallets for digital payments.

Cloud technology

As the volume of client data grows, banks are becoming increasingly interested in enhancing their digital capabilities to handle it with greater security and agility. It’s here that cloud-based platforms and technologies can make a difference. With the use of data analysis and storage tools, one can derive deeper insights from client data using cloud computing services.

Banks may improve their bank revenues, customer service, and general efficiency while lowering operational expenses with cloud technologies. Cloud computing will absolutely make it easier for banks to adapt to changing consumer needs and scale their computing capabilities to meet those needs.

Takeaway

The BFSI sector will reach new heights with the use of advanced technologies, which will lead to a digital. As a result, banks, financial institutions, and even customers will benefit from increased investments in these technologies.