The banking and Financial Industry has shown a revolutionary transformation over the last decade. Especially after the advancement of industry 4.0, we have seen an unimaginable leap in the banking industry.
Long queues outside ATMs, withdrawal & cash deposit forms, carrying heavy cash in the wallet, hustling for payment with shopkeepers and vendors; All these things have become an extinct sight after the banking sector witnessed a holistic digital transformation.
Hence, It’s not only the operational change within the approach and behaviour of the banks but also the lateral effect that has been drastically noticed in the life of customers.
Compatibility, Security, and lubricity is something that IT solution for the banking industry broadly revolves around.
Significant Impacts of Banking Digitalization
Improved Efficiency: Digital transformation solutions in the banking industry have drastically improved the banking industry’s efficiency. The adoption of cloud architecture has allowed the clients, customers, and employees to get omnipresent accessibility; anytime, anywhere, and from any device. When digital payment methods flourished in the market, customers got the opportunity to ease their transaction method across any marketplace.
On top of that, we have seen a higher degree of functionality in operations with automation that allowed the upper management hierarchy to focus on other analyses like customer satisfaction, sale ratio, and widening a client base.
Open Banking: This is another revolutionary change for the banking sector. It is particularly preferred to the open accessibility of third-party service providers to consumer banking. Digital transformation solutions company are predominantly converging their focus on open banking after the commencement of the fourth industrial revolution.
To reshape the backdrop of the bank’s consumer experience and operational expertise, open banking is potentially the best practice that can be incorporated within your organization. It enables the network of accounts and databases to be used by customers, financial institutions, and third-party vendors. The system ensures a higher return on investment and viable data sharing.
Enhanced Security: The adoption of a digital framework has a vast impact on the security structure of the bank. Cloud computing services, zero-trust security models, and other technologies like Big Data and Artificial Intelligence can detect and prevent malicious attacks, unauthorized transactions, and data breaches. This invariably supports and cements the security base with end-to-end solutions across the digital ecosystem of banks.
Digital transformation consulting services are certainly the one-stop solution for attaining this expertise. Today, innumerable tech-giant Microsoft Certified partners offer you such excellent deployment. US bank has recently tied up with one such Gold Partner of Microsoft to accomplish the need.
24/7 Business Accessibility: 24/7 accessibility completely transformed the shape of the banking sector. There was an era when banks were known to operate for 8 working hours. Any customer seeking assistance has to get connected in this time frame; else, he/she would have to contact the next day.
Then comes the digital revolution for the banking industry. The IT services for banking industry have completely transformed the window of accessibility. Now, consumers can use their devices and use the leveraged service with omnipresent accessibility and round-the-clock customer support.
Financial Lubricity: The functionality of cash flow and financial services got smoother after the adoption of digital technology. The disbursement of the loan, physical cards, virtual cards, and other procedures to obtain financial resources got lubricated.
The digital transformation consulting services played a major role in this. Technology brought a 360-degree holistic lubricity in the market that favoured the banking sector with great benefits.
Covid 19: A Propeller for Digital Banking!
For a very long time, the global banking business did not get over the old-school method of banking procedure till the time Covid 19 came into the picture. The implementation of social distancing norms has also brought a compulsion for the customers and banking services.
The process of face-to-face interaction for banking transactions suddenly turned obsolete, and there was no way out apart from relying on digital methods.
Let’s analyse the three main prospects which broadly emerged after the advancement of Covid 19:
Digital KYC: KYC is the abbreviation of “Know Your Customer”. Before the penetration of Covid 19, the banking industry broadly relied on manual proceedings of KYC documentation. Then comes the pandemic era with social distancing norms which eventually brought the compulsion of digital format.
The proven technique of KYC documentation is one of the revolutionary initiatives that received a broad adoption post-Covid 19. Now, financial institutions widely count on digital verification of personal documents required across the system. Loan service providers conveniently deploy KYC options using technology like zero Trust Security Solution, which finally leads to frictionless sharing of personal details.
Technology Update: No business across any marketplace has not relied on updated technologies after covid adversity. The same goes for the banking industry. The last 2 years have witnessed an enormous adoption of modern technology in the banking sector like cloud services, SharePoint consulting, Zero Trust Security, Business Intelligence, Big Data, and Dynamic 365.
More is the incorporation of contemporary technical advancement; Better will be the functionality of banks and financial institutions. IT services for the banking industry widely depend on these technologies to comfortably implement work culture.
Digital Adoption: Digital transformation services for banks are enormously defying the manual work model and relying on digital adoption. As discussed above, direct interaction with customers has turned obsolete, and accelerated digital transformation is leveraging a quick and remote interaction in a financial institution. Be it the withdrawal and deposit of cash or initiating any payment for online shopping, the implementation of the digital framework in the Covid era has become convenient and vital.
Digital transformation solutions providers are making it the first priority to improve their banking infrastructure with trending market technologies, making the customers stay away from visiting the banks and initiate most of the procedures from home.
Digital Banking: A Turn Around of Global Market!
“It has been a dramatic time of change in the banking industry, where success is increasingly driven by technology capabilities,” said Andy Cecere, Chairman, President, and CEO of U.S. Bank. “Our clients expect and require extreme flexibility and a bank that is simple to navigate and capable of quickly adjusting to their evolving needs. Building on our initial investments in the cloud and with the success of our technology and digital modernization, we gained the competence and confidence to accelerate our efforts to better serve our customers. Our cloud-first approach with Microsoft Azure will help us accomplish just that.”
To be precise, the rise in digital banking has brought a big turnaround in the global market. The digitalization of banks also had a tremendous effect on world business. The introduction of a digital wallet, UPI payment method, money transfer, and wireless transaction have made an immense impact on the rise in eCommerce Industry. Not only the economy but the life of people got enhanced by it.
Michael Donald is a senior technical consultant at Microsoft consulting services provider, Bitscape. He has unified experience in adding values to the existing technological architecture of various businesses. During his professional journey, he has tackled a wide range of challenges and has built the ability to work through challenging issues for any industry.