The adoption of futuristic technologies has gained considerable momentum in the banking and financial sector
The banking industry in India is poised for a transformational space with the implementation of cutting edge technologies such as Artificial Intelligence (AI), Machine Learning (ML), BlockChain and Robotics applications.
Robotic Process Automation improves user experience by allowing robots to handle repetitive tasks without human intervention
Distinctive technological solutions and rapid adaptability give companies a competitive advantage. They are now developing and using new technologies to act aggressively and strategically to disrupt rather than be disrupted. The emphasis is more on harnessing sophisticated technology to improve productivity and reach.
The adoption of futuristic technologies has also gained significant momentum in banking and finance. Rationalization of services for customers as well as system upgrades in terms of technology deployments are quickly accepted. The banking industry in India is poised for a transformational space with the implementation of cutting edge technologies such as Artificial Intelligence (AI), Machine Learning (ML), BlockChain and Robotics applications.
So let’s see how the BFSI sector is transforming with emerging technologies:
- Automation of robotic processes: The volume of unstructured data that banks must process is growing exponentially with the rise of the digital economy. It is not only banking transaction data, but also other behavioral data that could enable banks to improve and innovate the customer experience. Through a combination of various technologies that enable the automation of cognitive and robotic processes, bankers can now understand customer action and make judgment at higher speed, scale and quality. In addition, intelligent virtual assistants today manage transactions, deliver important information and help customers. Automating robotic processes improves the user experience by enabling robots to handle repetitive tasks without human intervention. It also reduces errors and allows bank staff to handle more complex inquiries and provide better customer service.
- Data analysis: Today, success is achieved by fostering intelligent customer engagement based on a data-driven understanding of the business. Technology and digitization have transformed the BFSI industry by enabling them to have real-time actionable information to make informed decisions, creating competitive advantages and improving the consumer experience. It also allows banks to share potential products, upselling, cross-selling and strategic planning with customers. With AI-powered models, the ability to transform customer banking experiences is truly exponential.
- API platforms: Today, through API platforms, banks are working with Fintechs to create banking stacks that allow them to be a platform that customers and third-party service providers can connect to to deliver flexible experiences. and personalized to the end user. API Banking Platform is designed to work through APIs that lie between the backend execution of banks and the front-end experiences provided by the bank itself or third-party partners. This allows banks to adopt completely new business models and use cases, such as enabling payroll advances and experimenting with new technologies like low-cost blockchain. APIs also help banks to sustain their systems.
- Cyber security: The banking industry processes sensitive and personal information, which makes it an attractive target for cybercriminals. With the deployment of technology in the BFSI sector, cyber risk is also evolving. Banks are becoming agile in their approach to cybersecurity. They are gradually implementing advanced analytics, real-time monitoring, biometrics and behavioral analysis software to detect threats and prevent them from disrupting systems. They also use anti-hacking tools that provide network-level security that checks for unusual behavior and potential cyber attacks.
- Cloud computing: Another technological breakthrough that is revolutionizing the banking industry is cloud computing. The cloud is an essential tool of the service delivery model and enables banks to seize new business opportunities and access new delivery channels. By leveraging cloud-based services, banks can reduce data storage costs by saving on capital and operating expenses, while ensuring customer data protection. Cloud computing also promotes secure online payments, digital money transfers, wallet payments, etc.
With the introduction of new technologies, the banking industry has changed tremendously over the years. Banking processes are now much faster and more reliable, which has improved customer relations with banks. For example, Mastercard Advisors, the data and information analysis arm of Mastercard, distills the experience and knowledge of thousands of real engagements with financial institutions to generate valuable strategies in the areas of consumer, commerce, debit, credit, marketing, acquisition, risk and fraud.
Mastercard’s anonymized and aggregated transaction information and world-class analytical capabilities complement our proven problem-solving skills to deliver highly actionable recommendations that drive financial results. The customer base has also grown due to perks like online banking, mobile banking, and contactless payments. The industry will have a better understanding of its needs, aligning with the latest technologies like Big Data both internally in their operations and with customers.