Providing an end-to-end digital experience replete with online and digital services and overhauling the existing backend system with sophisticated high-end technology is a daunting task –a task that most banks have been reluctant to dip their toes into. However, shifting customer expectations demands the necessity for this digital transformation. Without constantly evolving to meet the needs of these demands, services can go obsolete. Backing away from digital transformation can have drastic repercussions in the consumer banking service sector. Let us look into why digital transformation is necessary and the steps banks can take to further their efforts in this transformative journey.
The impact of COVID-19
The banking sector was unhurriedly taking tentative steps towards a digital future. But, COVID-19 drastically hastened this process. The limited hours, reduced staff and fear of exposure forced an alteration in the way people banked. People were adapting to technologies at an unprecedented level which otherwise would have taken them years. For example, there was an increasing trend in using online banking, mobile wallets, and QR codes. It was reported that nearly a quarter of the existing consumers were using at least one form of digital banking solution since the onset of COVID-19. Another underlying factor could have been that even before the pandemic stuck almost 49% of the boomer generation preferred online and mobile banking solutions. COVID-19 catalyzed the digital transformation process in the banking sector.
It has been a few years since companies and businesses embraced digital disruption, and embarked on the digital transformation journey to improve their business. It is now time to take stock of how far you have come and what lies ahead in the future. Traditionally businesses relied on manual intervention for all processes and there was little to no automation across their systems. Artificial intelligence, robotic process automation, robot — advisors were terms many were unaware of. But today these very technologies are helping businesses, including banks, to offer better service to their customers and secure their future.
This extends to wealth and asset management space as well. Cost pressure, FinTech disruptors and new digital channels are posing business challenges. Apart from these, the ever-changing regulations add to the overhead cost concerning wealth management organizations. It is imperative to understand that a system that will streamline the internal processes when working with a client’s accounts has a direct impact on the business’s profitability.
The key challenges:
1. Re-wired investors — The current generation investors have different expectations and look for advice that is unlike the earlier generation. This has forced advisors to relook at their strategies, and how they can influence the older investors with wealth management services.
2. New Competition — With every day new companies are cropping up disrupting the wealth management space. It is therefore essential to look at changing the business models to fight competition and retain.
The main advantages of our solutions are:
- Guidance through the entire journey
- Quick and instant access to the investment portfolio
- Paperless flow and one-click digital processes
- Digital platforms — existing legacy applications can be migrated while keeping the backend data source and business logic intact. The migrated application can take advantage of the modern UX and user interface that most low code platforms provide out of the box.
- Technologies used — Internet of Things (IoT), Mobile apps with Payment Gateways integrated, Artificial Intelligence (AI) applied to decision making, Email and Chatbots
- Personalized products and services
- Real-time updates
- Meeting customer demands and offering high levels of service.
- Data aggregation — view, update and visualize database tables without having to write any code.
- Regulations — manage changes in regulation and fraud prevention.
Neutrinos Expertise
Neutrinos platform adds value in building an application rapidly that needs to fetch data from multiple data sources (databases, APIs, Custom Business Logic, files, legacy apps, external services) and creates web as well as mobile-ready dashboards; not only provide these integrations, the platform helps the application to provide real-time dashboards, live data grids and live lists that give immediate visibility into business performance. We have been working with financial & investment companies helping them redefine their business processes and customer management. To understand how you can achieve digital transformation in the banking sector, reach out to us now.