The technological interventions transformed the field of finance and accounting. This modification can be seen in the operating patterns of both consumer and financial institutions.
Leading banks and financial companies are much invested in the digitisation of their functions.
The activities like applying for a personal loan and investing in stocks become decentralised and easily excisable online for the consumer. You can also calculate the CIBIL score online.
Digital finance speeds up the processes by reducing errors, establishing proper communication channels, and generating perfect reports and data in no time!
We are listing here the 6 most significant digitalisation trends which are transforming the financial industry.
1. Digital Advancement In Bank’s Operation
The use of digital platforms is not new for the banking sector. But it is being revolutionised constantly.
The hybrid cloud solution is the latest addition to the technological revolution in the banking sector.
It allows real-time advanced analytics and data integration. The API platform helps customers to integrate their banking data with other apps.
This integration is also known as open banking. The banks can benefit by offering a comprehensive digital online platform to their customers. They can make payments, apply for a loan and check their CIBIL report online.
2. Data Personalisation Through Artificial Intelligence (AI)
The customer demands the personalisation of services and data. This is because banks and financial institutions are raising the bar every day with the latest technology.
The AI is on the verge of providing personalised, predictive analysis. The dynamics in all the industries are changing rapidly due to the uncertain times of the COVID crisis.
Data personalisation and predictive analysis play a vital role in these circumstances. You can even create tailored websites for real-time recommendations.
3. Chatbots for Swift Communication
Chatbots function is one of the most treasured AI created solutions for the financial sector. It simplifies the criticalities of product delivery, risk management, back-office operation, etc.
Chatbots can enter data and can perform risk evaluation of any loan at the same time. Moreover, it enhances the information sharing from data analysis to customer communication amongst different channels and branches.
Chatbots are suitable for both large-scale banks and small financial institutions. It saves thousands of staff working hours.
4. Enterprise Risk Management (ERM) Plan
Companies are more focused on risk management after the emergence of COVID-19. The global market functioned and still is operating under uncertainty.
The role of finance is now well-recognised in overcoming unforeseen losses because of economic, environmental and other causes. The success of every enterprise depends on the use of technology for ERM.
Digital ERM can predict and show how to combat difficulties arising from natural disasters such as floods, earthquakes, pandemics, etc. This kind of risk management will alter the value paradigm for industries in 2021
5. Quick Business Decision
Different business operations like decision making, action-taking, and anticipating customer demand need to be real-time.
An extensive network and bridging all gaps are the new focus area for industries. For example, after receiving a loan application, the bank can instantly check CIBIL score status and other factors to evaluate the risk.
The demand and supply become more streamlined and swift because of the real-time business operating system.
The perfect collaboration between technology, team, data analysis, and business insight creates a hybrid business model for generations to come.
6. Minimum Manual Intervention
Financial companies hire highly educated and brilliant people to take the business ahead. But if these people are engaged in mundane routine tasks, they are missing out on their calibre.
Digitisation takes care of most of the manual work. It leaves your team with time and energy to focus on strategy building, solving complex problems, and taking on bigger responsibilities.
Robotics and digitisation streamlines billing, invoicing, and reconciliation with accuracy. It allows you to transform your finance function into large scale operations with cost-effectiveness.
Conclusion
This is the golden era for the finance sector. The technological and digital revolution has changed the face of finance and all other industries.
Consumer and service providers don’t have an option to not embracing this change. The technologies such as AI, block chain, data analysis, and market prediction provides value addition to shareholders.
It enhances financial performance, empowers growth and helps in managing business at a considerable scale.
Author Bio:
Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap, India’s first app-based credit-line.
Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters and when they want to get a loan.
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He has made it his life’s mission to help and educate people on various financial topics, so email him your questions at shiv@moneytap.com.