Top Digital Transformation Trends in the Financial Industry

Top Digital Transformation Trends in the Financial Industry

When it comes to the financial industry, the year 2019 is going to prove to be a changing point, especially concerning digital transformation. There will be a paradigm shift for the banking industry, especially for those who have functioned within the brick and mortar layout. The point is that consumers have been split for choices, which would, in turn, mean that financial institutions need to adapt to the new age technological trends, to stay in business.

Even though the word ‘digital transformation’ might seem like a buzzword, there is a lot more to it than meets the eye. Through the implementation of digitization, financial services can be altered effectively, to ensure economic growth is visible clearly. Let’s take the example of mobile banking — banks are competing with each other in the virtual space to help ease their customers’ financial transactions. The smoother the banking app, the better would be the digital transactions and the economic growth of a banking organization.

On the other hand, banks and credit card companies rely heavily on enhancing their mobile customer experience, without incurring any downtime during the transaction stages. This way, other financial establishments like fund managers, capital markets, equity markets, etc., can utilize tools like big data and machine learning to automate their existing processes and drive automation in a more structured and reliable manner, thereby making the process seamless and extremely user-friendly.

The services listed below can prove to be the game changers in the year 2019, which will shape up the financial structure with their digital transformation trends.

Mobile Banking

Mobile banking has eased the way consumers access their banking accounts and other banking services. When was the last time you set foot in the bank? Right from depositing checks, applying for loans, to transferring money, everything is happening at the click of a few buttons, right from our mobile devices. Customers of today don’t want a brick and mortar bank; instead, they want something which can be accessed from their mobile phones. A combination of 24/7 access, ease of use, and almost negligible waiting time has changed the way banking and other financial institutions are functioning; this will continue to evolve, as more and more customers prefer mobile banking over other forms of banking.

Mobile Pay Utilities

Apps are evolving at the speed of light. There was a time when mobile wallets were unheard of to the average consumer. While some people have argued over the security of storing electronic money, many others refrained from using this payment method due to lack of knowledge. However, times are changing, and so are ways of storing wealth and making payments. Mobile wallets have become the rule of the market; merchants, shopping complexes and other sellers prefer to use mobile payments versus traditional cash and checks. Convenience, security, and ease of availability have given way to a digital transformation over the years, which continue to evolve as time passes.

Blockchain

Blockchain might not have been an enormous success in 2018; however, it is slated to pick up in 2019. There will be more emphasis on blockchain concerning digital payments, escrow facilities, loan processing, etc. There is also an expected use of Blockchain in RegTech, wherein processes governed by regulations need to be automated to avoid unnecessary regulation breaches.

Automated Wealth Managers

Artificial Intelligence has become the talk of the era, given its magnitude of automation and possibilities. Wealth bots, or automated wealth managers, use complex algorithms to calculate the best investment opportunities, along with the best interest rates, the best loan providing institutions, etc. Financial planning has become a cinch, all thanks to automated wealth managers, which are rapidly helping people meet their financial goals with utmost precision and well-calculated returns.

Big Data

The fact today is that data is everything. Banking and financial institutions are rapidly making use of machine learning to process data to drive effective analytical solutions out of this data. This way, banks, and other financial institutions can better serve their customers, as well as improve their overall services to bring in more investment and create better work environments for their employees and customers alike.

The trends are endless; it is to see how the financial industry reacts to these changes eventually, which can prove to be a turning point in their existence.

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Top 5 Key Benefits of Digital Transformation

Top 5 Key Benefits of Digital Transformation

Digital transformation has become a buzzword for organizations these days. The world has gone digital; but does that mean that businesses are ready to revel in the era of digitization? The response is somewhat mixed; however, the benefits of digital transformation are still unknown, which makes the unexplored territory dangerous.

To usher in the true meaning of digital transformation it’s imperative to make companies, organizations and, businesses alike understand the five key benefits so that the adaptation process becomes more accessible and more lucrative.

Improved Efficiency
What does every organization crave? Customer satisfaction might be one of the benefits, but improved efficiency is a significant drive for digital transformation. Organizations are moving away from manual interventions, as effectiveness is beginning to become the critical phrase. When manual processes are replaced with electronic versions, there is a quicker process flow which is put into place, thereby making the organization efficiency model a success story to reckon.

Customer Experience
Customer satisfaction is of utmost importance; for any organization, the customers come first. For this very reason, if an organization needs to measure their success, it’s important to understand the quality of customer satisfaction and the methods which are used to arrive at the final verdict. The better the customer satisfaction levels, the higher the digital transformation success rate for organizations.

Robust Decision Making
What helps businesses achieve the first two points? When the management has sufficient, well-planned data to make sound decisions, it shows in the success rate, brand suitability, and brand name of the business. The sounder the decisions, the better would be the chances of achieving the organizational goals in the long run. Eventually, these methods of driving organizational goals are what leads a business towards success.

Enhanced Profitability
Digital Transformation is best measured with profit margins at the end of the year. The higher the profits, the better would be the motivation of the employees, and more significant would be the trust of the customers in the brand. When profits are enhanced, more decisions can be taken towards improving efficiency in business processes, which can be geared towards improving customer service.

Better Market Penetration
New customers can be added to existing business norms by penetrating unexplored markets. When new products are marketed, it’s essential to perform segmentation, to gauge the quality of the target territory. With improved efficiency and better decision making, the process of market penetration becomes more effective, which helps bring in loyal customers. As the customer base expands, so will the need for profits and improved customer satisfaction.

When all these processes are combined, they form a chain, which leads to the achievement of the pre-defined business goals. Each benefit is interlinked with the other, which is required for reaching the overall organizational goals.

Sound decisions are always a requisite for better profitability and customer satisfaction, to drive the essence of digital transformation and efficiency within each organizational realm.

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