Rakesh Shah 28425 Views 21 February, 2018 3 years ago

Technologies That Will Drive The Future Of The Financial Sector

Being the center of disruptive changes, the BFSI stands still to embrace another transformative year in 2018, especially, on the customer engagement front. Its a good-bye to traditional banking moving towards digital transformation. 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 financial sector in a technologically empowered tomorrow.

Application Management Services:
Enterprise applications play an increasingly important role in business operations, this is the reason many companies have already turned to mobile application development and web application development.

The BFSI vertical's are very complex and have to support various third-party applications, complex business workflows, and the growing remote and mobile workforce. Moreover with the emergence of eWallets, UPIs and payment gateways, businesses are expanding their coverage. This is reason this sector totally requires the help of application management services to enhance performance, simplify management and reduce costs. 

Security vulnerability has always been the biggest issue for digital transactions. Banks have been working overtime to abandon this fear by adopting Blockchain technology. With Blockchain, you can offer a “hyper secure” environment, preventing unauthorised access and any cashless digital transaction made has a stamp that provides enough assurance.

Not only are digital payments fast and highly secure using multi-signature verifications, growing internet usage and smartphone penetration also adds up to a lower transactional cost. Blockchain technology is likely to be a key driver of innovation in BFSI in the future.

Open Banking:
Open banking, also known as Open Bank Data, will be a new innovation of financial technology that banks will adopt. Users are already rooting for it. It involves the usage of Application Program Interface to let customers switch and carry on transactions from one bank to another. It is a platform where third party enterprises with their APIs can form a strong community with BFSI enterprises, leading to a stronger collaboration. It forms an ecosystem of highly secure third party applications and services. Also, Banking-as-a-Service model (BaaS) will encourage banks to be transparent about their service offerings. It also allows customers to switch between accounts and avail personalised services at a considerably lesser cost. Mobile application development, web application development, usage of APIs will increase customer satisfaction and drive maximum loyalty from them.

Social Media:
Social media platforms are now leveraging their potential, by offering BFSI enterprises a chance to connect with new markets and many consumers. For instance, social media today has a significant role in determining a borrower’s creditworthiness.

BFSI enterprises today are creating business models revolving around social media. A strong friend network on social media can help anyone explore the best avenues to receive banking loans.

Banks and financial services have already started adopting to the said “Digital Transformation”,  while some are yet paving way for it. Although all of these innovations are certainly going to change the face of banking, giving birth to a better improvised sector.