The financial services industry plays a pivotal role in the way the world economy functions. It helps in the smooth transition of money from entities with extra funds to those who are in dire need of funds. The financial services industry comprises companies that specialize in activities such as insurance, lending, investing, and securities trading and issuance. The vast financial services industry also includes professionals who specialize in tax filing, wire transfers, currency exchange, and credit card services. It also encompasses services for debt resolution and well-renown payment providers such as Mastercard and Visa. Firms in the financial services industry specialize in managing money and are world leaders when it comes to equity market capitalizations and earnings. Their clients range from individuals to non-profit organizations, businesses, and government agencies.
BFSI Industry Trends
Big data boom
The advent of big data has brought about an uproar in the field of data science. BI, analytics, and data science have carved a niche for themselves in every industry. This has resulted in a paradigm shift in the way data is being used today. Stakeholders in the financial services industry are on the lookout for resources who are adept at leveraging business analytics tools and are also investing in better technologies to make sense of all the unstructured data sets.
Payment banks taking over traditional banks
At present, payment banks have started taking over traditional banks due to the ease at which they can reach out to a wider audience and offer financial services to those in rural areas. And with new payment banks getting the ‘go-ahead’ from central governing bodies, companies such as Paytm, M-Pesa, etc. have started gaining popularity among end-users.
Financial Services Industry Challenges
Boosting customer service
With growing competition in the BFSI industry, firms have been forced to offer better services and perks to keep their customers engaged. The key to influence customers’ decision lies in the company’s ability to offer better services than their counterparts. Such services may include mobile and online banking services or the availability of round-the-clock customer support services to handle requests immediately.
Securing confidential data
The trend of digitization has brought about a plethora of changes in the BFSI industry. With systems moving online, it becomes essential for financial services companies to invest in security solutions to ensure the safety of their confidential data. In today’s competitive market, financial organizations will find it impossible to recover from any instance of data leak since their customers wouldn’t trust them with their confidential data.
Over the past couple of years, the BFSI industry has witnessed positive changes, driven by the improving global economy and rising consumer confidence. But now, due to rapid digitization and technology adoption, firms are focusing on implementing better mobile payment applications, secure cash recyclers, and tools to improve customer experience and reduce churn. Technological change, by far, is the most creative force in the financial services industry and companies who adjust their business processes accordingly will soon reap the rewards of this new trend.