9 May 2023
Strategies For Digital Transformation In Financial Firms That Lead Them Ahead!
Banking is essential, but do you think banks are?
Of course, not!
The thing we believe today has predicted by Bill Gates some years ago. Digital transformation in the finance industry has genuinely modified how we operate and interact with our finances. Moreover, this paradigm shift from finance into fintech has turned huge with something magnificent like cryptocurrencies and other digital coins.
To accommodate more significant shifts in the market, a vital necessity is to change the landscape in which we regulate our financial institutions.
Because digital-savvy consumers are in search of digital-savvy companies, and the UAE fintech market is likely to reach USD 39.3 billion in the current year. That’s why you must become a digital-savvy company.
Are you wondering how digitization proves helpful?
Move into the section and learn what vital roles digitization has played in revitalizing the conventional finance sector.
Digital Transformation in Finance Sector
Digital banking has been capturing the space for conventional banking with the arrival of top-notch technologies like Blockchain, smart contracts, Artificial Intelligence, IoT, and others.
Implementing this tech ensures a higher level of convenience, security, and services to users and lets entrepreneurs accelerate their business growth. To serve customers better, leveraging the tools and resources from a top fintech app development company can do wonders.
Also Read: FinTech in Investment Banking: How It Can Help the Unbanked Population?
As technology evolves and customer expectation changes, it is the right time to create more exceptional opportunities and enhance efficiency and the customer experience while enabling digital transformation in finance industry.
Stats about Digital Transformation in Finance Sector
What makes digital transformation a compelling force in the finance sector? Here are some stats:
- 51% of financial institutions have revised long-term strategic vision.
- New digital projects of 61% of finance companies have been in motion.
- 48% of companies are accelerating digital transformation plans.
These stats are valid enough to show you the incredible growth finance sectors are planning to turn into fintech. With digital transformation in finance industry, you can bring multiple benefits, like enhanced agility and increased customer experience.
Transform Finance Sector with These Key Areas!
Now that you have decided to modify the banking sector digitally, it’s time to improve those key areas where you find the most challenges:
Security and Compliance
Do you know what is the primary reason people are moving to fintech?
Yes, it is poor security.
When it’s about dealing with a large amount of data, only tech integration can add some relief to us. The users can seamlessly check the balance in their bank accounts without visiting the banks or physically presenting themselves.
This is what brings the most assurance to users. They feel more securer when they have everything in front of their eyes.
However, to ensure robust security, you must invest in reporting capabilities, infrastructure, and compliance.
Your financial institution will not turn into fintech unless you have a skilled workforce who knows how to automate repetitive tasks using the best tools. But for that, you need to train your employees.
Giants like Bank of America and Wells Fargo 2020 trained around 70% of their employees remotely while utilizing virtual reality and other tools, which turned out to be a gain for employees.
To become a team player in the market, ensure you have an upskilled workforce that can tackle all tasks seamlessly.
Digital and Contactless Payments
With the arrival of Covid-19, digital and contactless payments have become the most prominent solutions among consumers. Whether it’s about booking a flight, buying some products, receiving services, or bank transfers, everything becomes contactless and digital.
That means the role of traditional banks failing to embrace technology has been reduced. So, don’t you think it is the time when you should begin a new revolution for your organization with contactless payments?
Strategies that Conventional Banks Should Follow for Digital Transformation
The transition you all dreamed of is not impossible with the execution of the right strategies. So, what are you waiting for?
Follow these right strategies and get into a roller-coaster ride of digitization.
Gather Insights and Analyze Data
Use the structured and unstructured data of how customers interact on your social media page, website, and customer care team. Master data management and data warehouses can let you extract data from different sources into a centralized repository that you can break down into:
- Customer Sentiment
- Competitive Insights and benchmarking
- Product Insights
- Media Monitoring and analytics
- Critical Industry and market trends
Now you have the data, build a digital strategy that lets you understand the following:
- What digital channels do your consumers prefer?
- How do they like about your brand
- Which practices should you consider to enhance customer experience
- Get to know what other competitors are implementing.
Once receiving everything in a clear, crisp, and 360-degree view of your customers, competitors, and industry trends, you can have the most deriving digital initiatives that cater to users’ needs conveniently and seamlessly.
Interesting, isn’t it?
If the insights you gained, at last, are about customers asking questions and sharing their feedback, then you must ensure a solution while integrating AI chatbot that provides answers to all their queries quickly. However, for that, you must need the support of a top app development company.
Leverage Social Media
Social media is one of those resources consumers prefer to view the truth of many enterprises. In 2022, there were 5.27 billion people worldwide using social media.
So what about social media for financial services?
Before relying on a brand, customers usually interact with businesses while learning more about them through their social media profiles. Feedback, questions, and reviews everything can be shared or read, thus increasing the transparency between the consumers and the entrepreneur.
Most importantly, the conversation across different platforms allows businesses to enhance their customer experience. Thus, digital transformation in finance industry helps.
Choose the Right App Development Company
To digitize your financial institution, you must need a dynamic solution like a top-notch fintech app that goes parallel with the evolving needs of consumers.
That’s not it!
The assistance and support of the top app development company can help you build a dynamic solution. Not only do they have a knack for technology, but also the futuristic trends disrupting the industry like never before.
What does it take to connect with the best developers?
Only a consultation over a coffee. Yes, we will listen to your idea, bring our suggestions, and help you create your masterpiece with our expertise in the field. From consultation to support & maintenance, we promise the best of our knowledge and help you enhance your business reach.
Why Should We Consider Digital Transformation in Finance Industry?
Still trying to decide whether to integrate tech into your financial institution?
Here are all the benefits that digital transformation in finance industry helps you achieve;
What are the Leading Benefits of Digital Transformation for Banking?
Time and Cost Savings:
Cashless transactions do not involve intermediary channels; thus, cash can be delivered from one party to another seamlessly and quickly.
All the cost incurred in physical infrastructure and manual processes gets reduced with the onset of digital transformation in finance industry. For both users and consumers, it’s no more than a marvelous thing to transact in a way that saves time and cost.
AI (Artificial Intelligence) and ML (Machine Learning) let entrepreneurs make decisions faster with accurate and real-time data availability, thus helping to derive valuable insights and optimize growth.
Don’t you want to enjoy this benefit that fintech provides?
If yes, connect with our expert today and build your own AI-enabled fintech solution.
Seamless Data Management:
Whether it’s about collecting, managing, and storing data, effective cloud technologies enable a smooth and seamless transition. While traditional banks can have compatibility issues while managing data, digital banks can have multiple benefits.
Interesting, isn’t it?
While creating new products and services that cater to consumers’ needs, digital transformation in finance industry enables dynamic opportunities for financial institutions to create dynamic business models.
Enhanced Customer Experience:
Today, tech-savvy customer expects high-quality services, and to help them get the same, it becomes essential for businesses to invest in a digital solution that delivers the same.
Don’t you want to be in this age of digitization?
If yes, connect with a leading mobile app development company in Dubai like Techugo; you will get a pool of high-skilled developers who are always ready to provide you with the best assistance possible. Moreover, our choice of tech stack can help you lead a drastic change in your industry.
Top Digital Transformation Trends in Financial Services
Digital transformation is not going to stop anytime soon.
The deriving technologies will transform the whole landscape in which we are operating our business and introduce the most significant place for entrepreneurs and consumers to bridge all their gaps and come in front of each other. Here are all deriving tech trends that prove this statement.
AI and ML
To enhance customer experience, eliminate risks, and automate processes, various financial institutions have their hopes on these two technologies, AI and ML. Whether you want to analyze a large amount of data, enhance data-driven decisions, and strengthen customer relationships, AI and ML can do everything and thus significantly improve operational efficiencies.
Cloud technology eliminates the complexities and improves business agility while allowing banks to get a space into a more robust and scalable platform from outdated infrastructure. Most banks use this technology to run applications, host services, and store data. Moreover, the modernized infrastructure has streamlined processes in an enhanced way.
A game changer in the finance industry.
Yes, that’s the definition we can give to this dynamic technology.
Blockchain is all here to revolutionize the entire financial system. It is way beyond what we think for its security, transparency, and robust features. Using Blockchain, it becomes easier to craft new products like digital currencies.
We can enhance the speed and efficiency of cross-border transactions.
Robotic Process Automation
To automate repetitive tasks and routines, various banks are using RPA. This technology enhances customer experiences, reduces cost, and enhances the accuracy of processes, which makes it a perfect companion for multiple businesses to computerize back-office operations.
For more accurate and faster customer transactions, RPA is a must-have tool for futuristic banks.
Another great tool is here to let banks make decisions and stay ahead of the curve.
The use of big data can enable banks to gather, store, and analyze data from different sources like social media, customer transactions, and others. Moreover, this tech trend helps identify customer behavior and thus prevents fraud.
Get a Digital Space with Techugo!
Now that you have learned the benefits of incorporating digital transformation in fintech industry, it’s time to find the best technology partner.
And guess what?
No one can help you like Techugo, a top-notch fintech app development company. The developers here know what’s suitable for your project and what kind of tech integration will prove fruitful for you to succeed in this digital age.
You can check out our portfolio and learn about our experience building 750+ robust applications for industry verticals if you are still in doubt.
If that does not work, you can book a consultation with us and have our back for your dream project.
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