While the digital revolution has an ever increasing impact on all industries, the BFSI sector is in transition to witness some major changes in its entire system. New digital habits, behaviours and customer expectations have made it mandatory for financial institutions to adapt to digital transformation.
These digitized transformations are now expected to grow more than double in size over the next five years. Investment may climb to over 31 billion as more businesses bring digital technology into their workplace and customer experiences.
The mega trends and shifts in this industry are here!
Blockchain Method of Transactions:
The current systems that facilitate the total volume of global transactions and payments are inefficient, outdated, and incapable of gratifying worldwide demand. With major competition coming in, the efforts will be to address these needs with greater efficiencies and provide improved consumer experience. The future prospects are that traditional firms may lose control as the impact of digital technology keeps escalating.
It is predicted that blockchain innovations will be the most transformative change in the payments system for the next ten years. All payment volumes will grow drastically by 2025, stirred by Internet of Things (IoT), digital payments and direct corporate payments. These changes to payment infrastructure can facilitate increased volume, while decreasing the fee margins and the reduced need for intermediaries, can reduce costs, while increasing access around the world.
Cloud technologies will be a leader in the market trends. They will prosper and continue to grow each year to 2022. As companies adopt technologies such as Artificial Intelligence and Big Data, they're realising the need to resort to constantly online data centres. Transformation strategies serve to be enterprise solutions at several industries, with the healthcare, telecoms, automotive and retail sectors already set to rapidly grow into the next decade.
The BFSI sector is more likely to use digital tech because it is already a close fit for new trends. BFSI companies also have flexibility when selecting new technologies, with several forms of emerging trends suitable for usage. AI and big data both have direct applications to the financial services, whereas other industries yet have to develop tailored solutions.
Over the last few years, banks have experienced the least growth in brand value. As digitization continues to empower other industries, consumers will expect banking experiences to replicate it. With significantly fewer visits to a local branch office or even lesser conversations over the phone to a customer service representative, conveying a consistent brand experience will be more challenging. Developing personalized services over the internet and providing real time solutions will work well. With custom enterprise app development, net banking solutions and prompt online services everything can be fixed rightly. One application that is doing quite well online is Activ health, this application being developed by PostBox Communications, has a friendly approach towards its users. It offers a digitized ecosystem to track health and fitness activities.
Though the demand interest for digital is on a rise, the transition from traditional to digital, won't go smoothly for all firms. Cybersecurity poses to be as one of the biggest growth inhibitors for digital transformation. Rolling out new technologies while ensuring they're responsibly managed will present new challenges to firms using digital tech for the first time. As more complex networks are introduced, the importance of robust protection will rise.
With the growing number of IoT enabled systems, the number of security and privacy problems will also increase, and every endpoint, gateway, sensor, desktop and smartphone will become a potential target for hackers.
Keeping the pros and cons in mind, financial companies should now take the necessary measures to digitize their presence, solutions and services. A competent digital transformation consultant will do it for you, you have to find the right one.