Ever since the Covid-19 pandemic, a number of different sectors have gone through huge shifts towards a more digital approach, which continues to be the trend to this day. The financial sector, in particular, is drastically changing, with many traditional high street banks closing down and new, digital-only financial businesses currently in the spotlight. As a business in the financial industry, now is the time to re-think your strategy and perhaps get digital transformation consulting services to figure out how you will be adapting to these changes.
Here Are The Key Trends Of Digital Transformation In Finance
1. Mobile Banking
As the industry is becoming more digitalized, mobile applications are now used as the prime way for financial services such as banking, as opposed to visiting a physical branch or an online website. Offering your customers a high-quality app that covers all of their financial needs is key. The application is also expected to be quick, easy to use, intuitive, and secure.
2. Artificial Intelligence
Artificial intelligence is now used in a wide range of processes in the financial industry, particularly as a way to automate and increase the efficiency of certain services. For example, different authorizations can be done much quicker, chatbots are smarter and solve people’s issues more efficiently, certain transactions are automated and the whole banking solution is overall highly autonomous.
3. Customer Experience
Customer experience has always been important, however, financial businesses are now putting it at the top of their priorities. Customers have increasingly high expectations when it comes to the financial services they use, including how quickly their issues are solved and how easy the processes are. Such capabilities as biometric logins, personalized services, and integrations with third-party apps are some of the ways businesses elevate their customer experience.
4. Data Privacy And Cybersecurity
Cybersecurity threats are not going anywhere – in fact, they are only becoming more concerning and common. The customer is just as aware of these issues as the business itself and so these worries must be solved by implementing top data privacy and protection solutions. Financial companies are now making use of cloud services for data storage, two-factor authorizations as well as many other cybersecurity efforts.
5. Internet Of Things (IoT)
Using the Internet of Things to the advantage of a business is a rapidly growing trend among various industries. IoT is concerned with the various smart devices that consumers are using in their households, starting with smartphones and watches through to smart fridges and sleep-tracking devices. Each of these can provide valuable data of consumer behaviors, helping financial businesses gain better insight into their customer spending habits and needs.
6. Open Banking
Open banking is now becoming more popular among digital finance businesses. This means that the company opens up data to other regulated institutions and businesses in order to access, use and share their services. This allows for various integrations with third-party apps and customisation of services for the user, overall leading to benefits for both, the customer and the business itself.
7. Digital Currencies
The most crucial digital transformation in finance is digital currencies. They are now becoming more recognized around the globe, with different institutions creating their own currencies as well as regulating existing ones like Bitcoin and Ethereum. Many financial institutions are aiming to incorporate digital currencies into their current services and allow using them for transactions as well as a personal investments.