Digital transformation in the sphere of financial services has become highly important in the ever-evolving, fast-paced digital landscape of today. As per Kavan Choksi, financial institutions of varied types widely use digital technologies to provide improved customer service and help customers to handle their finances effectively. Adopting digital transformation strategies has become the need of the hour for many finance companies with brand new technologies coming up in the market and changing consumer preferences. Digital transformation allows financial service providers to stay competitive and improves their bottom line.
Kavan Choksi underlines the distinctive uses of digital transformation in financial services industry
Digital transformation is rapidly changing how the financial services industry operates, starting from the manner in which transactions are processed and managed to how customers interact with their financial institutions. Financial services companies make use of distinctive digital technologies to drive innovation, improve operational efficiency and enhance customer experience.
Here are some of the biggest advantages of digital transformation in financial services industry:
- Improved customer experience: Digital transformation helps customers to enjoy a hassle-free and seamless experience. In the modern, tech-centric environment, customers expect prompt services. With digitalization, a variety of financial services can be made available right at the fingertips of the customers. This allows banks and other similar companies to positively engage the customers and deliver personalized solutions. Customers are also able to access financial assistance almost any time via virtual assistance, which invariably increases their satisfaction with the services.
- Increased operational efficiency: With the assistance of digitalization, companies can automate manual tasks and streamline operational processes. Technologies like cloud computing, blockchain, and artificial intelligence can be used to cut down the cost and time associated with financial transactions. Automation of processes helps improve efficiency and reduces the risk of human error. It also aids in integrating and sharing data across the systems with ease, while accelerating operational efficiency. With digital transformation, financial institutions are able to move from legacy applications and make use of more user-friendly centralized systems.
- Time and cost savings: Digitalization facilitates cashless transactions that cut down spending on various intermediary channels when it comes to delivering cash from one party to another. Digital transformation projects often lead to reduced hardware by retiring old systems, and hence might be able to save the expenses of a company. Digital transformation additionally allows financial institutions to reduce physical infrastructure costs, paper-based transactions, and manual processes to a good extent.
- Process accuracy and agility: Automation in operations is fruitful in eliminating human errors and improves the precision of repetitive tasks to a good extent, while simultaneously enhancing efficiency and productivity. Moreover, real-time, accurate data-availability with advanced analytics powered by ML and AI aids financial service providers in making prompt decisions and meet customer needs.
Kavan Choksi points out that digital transformation offers valuable opportunities for financial service providers to develop brand new products and solutions that are more responsive to customer needs. It additionally assists them in collaborating with fintech companies with the aim of developing brand new business models.