Role of digital technologies for financial service providers – Times of India
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Co-founder & Director of Seeds Fincap Pvt Ltd.
Financial institutions can hugely benefit from the technologies that make processes more efficient, reduce human errors, and improve communication. The technologies such as chatbots, Cloud Technology, automation, Blockchain Technology, Artificial Intelligence (AI) & Machine Learning in the financial services industry improve the quality of customer relationships and result in increased profits.
The finance industry is undergoing a significant digital transformation with major implications for primary functions and functionaries of modern finance. Emerging technologies have redefined the operations of banks, insurers, and other financial service providers to find unique ways to provide better services to their clients. These technologies have created new opportunities by introducing customised services, regulated operations, cutting down risks, and efficient decision-making.
Technology-driven operations enable organisations to cope with heavy competition in the banking and financial industry, escalating employee efficiency to deal with vast data, Increasing profitability and acquiescence while meeting the demands of stakeholders. Financial service firms are transforming to technology-empowered operating models for more efficiency.
Technology empowers financial organisations to completely redefine their operations, establish innovative products and services, and automate customer assistance and support. Following are the areas where leveraging advanced technologies is a complete game changer.
1) Risk assessment, fraud detection, and management:
The secret of a successful business is eliminating the risks. Since financial institutions deal with money transactions, there is no scope for even minor risks. Advanced technologies with security and fraud detection techniques can detect fraud and errors and raise red flags before any discrepancy. It assesses the spending pattern and behavior of an individual and identifies in case of any odd behavior. AI facilitates real-time analytics, monitoring, and alerting about threats instantly.
2)Accurate decision-making
In tech-driven management times, organisational decisions at a lower cost are a must for any financial institution. By analysing the vast volume of data, a technology-driven system gives desired results to help the management to make suitable and accurate data-driven decisions and reduce time. Also, it has a crucial role in security, risk management, and cyber-security.
3) Automated customer support
The conventional customer care industry has been replaced with the help of AI-enabled technologies such as Chatbots, Voice systems, and Text chats. These technologies provide the opportunity to offer a better customer experience in the finance industry also. Clubbed with the technology of Artificial intelligence solutions are leading digital transformation, providing faster customer security, improving response time, and reducing strain on first-line customer support. Chatbots are used for – automating tasks, handling customer complaints, answering queries, providing financial advice, and handling routine requests. It adds significant value to the user experience and cost management budgets, minimising human error, helping companies, providing more value to the users, and reducing business expenses.
4) Managing data:
Data management is collecting, keeping, and using data securely, efficiently, and cost-effectively by an organisation. The finance industry generates lots of data, and to monitor this data with precision, security, and speed to analyse, establish predictions, recognize patterns, and create predictive strategies, digitisation is a big revolution. It has enabled technology to penetrate and transform financial institutions to compete in the market.
5) Automation
Having future-ready finance applications that leverage advanced technologies elevates efficiency, productivity, and profitability Finance Institute. Automation is a primary component of digital transformation for financial service providers allowing them to operate more efficiently and helping reduce the administrative burden on companies by automating some of the procedures.
Finance automation reduces the number of manual controls, errors in reporting, and operational costs. It plays a significant role in achieving business process excellence by leaving more time for strategic work, organisation of the processes, and automating manual work. Companies minimise mistakes, improve collaboration, and increase productivity by automating and integrating processes.
The digitisation of the finance industry has helped eliminate paperwork, streamline operations, and boost employee productivity. As technology continues to improve and grow, the finance industry will continue to improve and grow as well with tech-driven persistent innovation and upgradation.
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Views expressed above are the author’s own.
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