The world today has entered the times where technology is making an ingress into each and every industrial sector, and the BFSI industry is no exception to it. In addition to that, consumers’ demands are evolving much faster than the enterprises can adapt to the changes. The emergence of digital technologies is indeed paving the way for an ‘information’ era that would push every industry to come up with innovative solutions to collect, store, and interpret data in a cost-effective way. The Indian BFSI industry is embracing the digital banking solutions as a way to not only tackle the challenges in the sector but also propel its growth forward continually in the coming years.
Digital Evolution of the BFSI Industry
Though the BFSI sector today is expanding with digital technologies, it was only in the late nineties that some of the private sector banks started introducing digital banking services. However, initially, it was considered insecure as the use of information technology and online transactions via internet banking was not the norm. But in the 2000s, internet banking and digital banking solutions witnessed a steep growth, owing to increased awareness, security checks, and initiatives taken by the government. As a result, digital banking solutions gained a lot of momentum in the past decade. The concept of anywhere anytime banking increased customer satisfaction while at the same time benefitting the banks through cost savings and increased penetration of their services to the consumers.
In the past few years, the Indian BFSI sector has realized the need for digital technologies and has stated embracing digital banking solutions with grace. Considerable investments have been made in the sphere for the creation of digital infrastructure and to offer the customers with various digital financial solutions by means of mobile banking, e-wallets, and virtual credit/debit cards, etc. Everything from mobile technologies, cloud computing, and the Internet of Things (IoT) are making their ingress into the sector, providing convenient and advanced financial solutions. Some of the other key innovations that have taken place in the domain of Digital banking are Biometric Technology, Digital-only/Virtual Banking, Artificial Intelligence, Robotics, Bitcoin, and the Blockchain Technology, to mention a few.
The Rising Trend of the Adoption of Digital Banking Solutions
Digital banking solutions are on the trend, providing end-to-end banking services through digital platforms such as mobiles, tablets, and any internet connected device. It is indeed a paperless and signature-less banking that offers 24/7 services to its customers from anywhere anytime. In India, digital-only banking services are introduced to provide the consumers with various financial products and services such as bank account opening, term deposits, loans, insurance, and even mutual funds. Digital banking solutions have become simple and cost-effective in all means; nevertheless, there are security risks as well. To add to the fact, the Indian BFSI industry is also gradually adopting biometric technology for authentication purposes with a view to providing a secure baking experience for the customers. It is important that the industry takes a leap ahead into addressing those security concerns and make digital banking solutions much safer in the future.
Artificial Intelligence (AI) and machine learning in banking solutions are efficient to provide quick and personalized financial services for the customers, focusing on their specific preferences and requirements. Generally, AI in banking solutions is used to collect information and build solutions based on digital information and inferences collected. However, AI in digital banking solutions is still in the nascent stage with only few large banking companies currently seeking this technology to their services. Ideally, machine learning and AI are used to re-engineer backend processes so that banking processes can be automated with high transaction volumes for a better scalable and cost-effective outcome.
Upcoming Digital Technologies
Apart from these digital technologies, there are also many other upcoming technologies emerging in the global arena, which the Indian BFSI sector could harness in the future. Augmented Reality (AR) apps can help integrate digital information with real-world user environment, making it easier for the customers to locate banks and other information. Bluetooth beacons technology can help banks to integrate physical and mobile banking channels for effective communication. Though adoption of these technologies is very less in today’s scenario, it is expected that these and more new technologies would penetrate the BFSI industry in the coming years and extensive adoption of many digital technologies in banking solutions would propel the industry further ahead in a positive way.
With the digital world ahead presenting lots of opportunities for the coming generation, it is time students stay abreast with the latest trends and learn to grow in the thriving economy. For those expecting to embark on a lucrative and stable career in the BFSI industry, it is necessary to become aware of the upcoming digital trends and seize the opportunity with adequate industry knowledge and skills. To that end, we, at TimesPro, have been providing industry-focused education enabling the students to successfully excel in the competitive global market. Our industry-specific, career-oriented program of Post Graduate Diploma in Banking and Financial Services Management (PGDBM XL), regarded as one of the top banking programs after graduation, is specifically designed and delivered by experts to provide the students with the highest standards of professional education in the niche of banking and finance. The program aids skill development in students and trains as well as equips them with not only deep theoretical knowledge but also endow them with technical know-how on the latest digital banking solutions that help to promote their professional growth in the BFSI industry.