The digital ecosystem and hyper-connected networks of today have meant that Banking, Financial services and Insurance (BFSI) enterprises are focusing their energies on innovation, leveraging the newly available technological platforms.
Here are some of the recent and emerging trends, technologies and tools that are likely to transform the BFSI sector in a technologically disrupted tomorrow.
The world has an estimated 1.2 billion mobile banking users at the end of 2017, which is likely to cross 2 billion by 2020 . Such has been the exponential growth in mobile banking that logins through mobile banking are exceeding Internet banking logins in many markets. Mobile apps of BFSI enterprises are already leveraging the technology of tomorrow.
If you have not already deployed Artificial Intelligence (AI) bots in your business, get ready to do so. AI-based chat bots are being used to not only offer better financial services but also to learn about user habits and offer dedicated banking and financial advice, helping consumers make smarter decisions.
The recently launched Bank of America’s chatbot ‘Erica ’ is a prime example of how mobile banking has now turned a page and is ready to offer innovative services with a trusted intelligent digital assistant.
One of the biggest arguments against digital financial transactions has been security vulnerability. Banks are working overtime to eradicate this vulnerability by adopting Blockchain technology. With Blockchain, you can offer a “hyper secure” environment, preventing unauthorized access and assuring that cashless digital transactions become a self-sustained disruption.
With Blockchain technology, not only are digital payments fast and highly secure using multi-signature verifications, growing internet and Smartphone penetration also adds up to a lower transactional cost. The recent Emirates NBD and ICICI Bank partnership working on a mutual collaboration for a Blockchain pilot network for international remittances is just one instance of how Blockchain technology is likely to be a key driver of innovation in BFSI in the future.
Social media platforms are now leveraging their potential, offering BFSI enterprises a vast opportunity to explore newer markets and consumers. For instance, social media today has a significant role in determining a borrower’s creditworthiness.
Moving away from using social media just for customer service and as a marketing platform, innovative BFSI enterprises are creating business models revolving around social media. For example, a strong friend network on social media can now help consumers get a banking loan—which would have been otherwise overlooked—thanks to Fintech startups using social media as a reliable predictor for safe lending.
Mutual collaboration in the BFSI sector is likely to be another prime driver of growth. As banking, financial, and insurance companies start sharing expertise, they can offer better services.
Leveraging the power of mutual collaboration, the BFSI sector as a whole can reengineer itself into ‘BFSI as a service’, easily transforming from a brick-and-mortar experience to a smartphone-enabled one. The Open Bank project, for example, is offering a platform where third party enterprises with their APIs can form a strong community with BFSI enterprises, leading to a stronger collaboration.
Such platforms can empower your organization in enhancing your digital BFSI offerings with an ecosystem of highly secure third party applications and services.