The financial services industry facilitates the transfer of funds across the globe – making it an important part of the world economy. The financial services industry includes companies that are involved in various activities such as banking services, insurance, investment management, and securities trading among others. These companies offer banking and financial services to everyone right from individuals, businesses, non-profit organizations, and government agencies. The financial services industry no longer entails tasks and transactions that require a human interface and paper money. The rise of digital technology has transformed the financial services industry; thereby, disrupting the market and its operations.
Financial services companies across the globe have adopted digital technology to automate financial planning and securities trading applications, leverage social media, cloud-based infrastructure, and robotics. Integrating technology with business practices drives better quality, improves customer experience, and minimizes costs. The financial services industry must build a robust IT infrastructure that is responsive, flexible, and efficient. A strong infrastructure will help the companies in the BFSI sector to channel their efforts towards fulfilling the marketplace demands, ensuring that the products and service offerings are competitive, well-designed, and drive cost saving opportunities. In order to succeed, it is de rigueur for the companies in the financial services industry to adapt itself and integrate the emerging trends within its business processes.
#1 Increased Investment in Cyber Security and Analytics
It is absolutely essential for stakeholders in the financial services industry to invest resources to enhance cyber security and leverage analytics to gain actionable insights. A majority of the financial and banking service organizations are turning to cloud-based infrastructure, which facilitates flexible and personalized interfaces, improves customer experience, drives cyber security, and protects the information from external threats and sophisticated cyber criminals.
#2 Increase in Fin-Tech Innovation
Recent fin-tech innovations have lowered the market entry barriers and resulted in the optimization of banking processes through technology. The fin-tech innovations offer platforms that leverage technologies such as blockchain and big data to offer simplicity, flexibility, and convenience to make financial transactions.
#3 Adopting Customer Centric Approaches
The financial services industry has adopted customer-centric approaches to enhance the value of their product offerings and offer a seamless experience to their external stakeholders. The companies in this sector must leverage market intelligence and customer intelligence solutions to gain an in-depth understanding of customers’ demands and expectations and utilize this information to customize the product offerings and ensure the right product reaches the right customers at the right time.
