The journey of the BFSI sector has been transformational, especially when we consider the last two decades. However, the past two years since the pandemic has been the most
transformational as the integration of digitization changed how people deal with banking and insurance. The closer we head to web 3.0, the more we see this industry adopting technology while slowly replacing the conventional methods of operating.
BFSI sector, although initially slow, has now been adopting Cloud Based systems to provide a technologically sound experience to its customers while ensuring it is cost-effective, agile and auto-scalable.
How collaborating with cloud services can help BFSI services?
To survive and thrive in the digital world, banking, financial services and insurance (BFSI) firms need to be resilient, adaptable, and customer-centric. This is where cloud service can help these firms by:-
- Fastening the process of digitization thus enabling them to cater to the evolving business
- Achieving operational excellence and delivering a seamless banking experience
Cloud-based Financial Services
Cloud services offer a broad range of possibilities, from building AI/ML applications to hosting web applications. Let’s explore some of these and see how technology is assisting in carrying out different functions!
1) Data & Analytics
Data and Analytics play a key role in ensuring successful digital transformation as it helps make effective strategies by utilising the vast pool of structure and unstructured data to gain insights. These insights in turn help the BFSI sector make better decisions, improve performance and drive growth for the organisations.
2) Migration and Modernization
Cloud hosting services provide modern solutions like containerization, microservices,
modernizing OSS, data warehouses, and software to automate application migration. This
provides scalability and helps build resilience.
One of the most effective ways this industry has overcome the challenges of serving customers due to the pandemic has been the use of Artificial Intelligence. It has made responding to queries and meeting the specific needs of each customer easier through automation. Machine learning and AI are tools also helping in other things like protection of data, reduction of risks, and faster data processing, which make sure that the quality of customer service is great and the trust of the clients is maintained.
4) Cloud Security
Cloud solutions provide a range of security solutions to secure bank data and other information stored and accessed by Cloud. Operational, infrastructure and application security help banks stay safe against threats like cyber-attacks, data breaches, and unauthorized access. Financial institutions can greatly benefit by implementing cloud solutions as they come cost-effective and increase agility and efficiency. Since BFSI is one such sector that deals with the crucial personal data of customers, security is at the top of their priorities. It is the foremost step in gaining customer trust as we know is the key to success.
Factors Driving The Transformation of BFSI
- AI and Cognitive Analysis
Data is at the heart of the BFSI industry, and Machine Learning and Cognitive Analytics are
exactly the tools needed to extract meaningful insights from the dump of data that is there
facilitating effective decision making. The gathered insights are also used to deliver
personalised services to customers and boost engagement.
- Robotic Process Automation
By interacting with an application’s user interface, RPA systems can emulate the exact steps just as any person would when working across multiple applications. RPA has addressed the problem of the case backlogs successfully and improved the productivity of global investment banks with respect to handling cases. It can be relied on to reduce manual errors as well and has immense possibilities in the BFSI industry due to its scalability, cost-effectiveness, and easy implementation.
- Payments Banks-Fintech partnerships
Payment banks are ready to digitize and transform India’s cash-based economy by partnering with Fintech companies and investing in Fintech. Unlike traditional banks, payment banks are able to reach a much wider segment of the value chain, including and serving a much wider customer base.
Currently, banks are heavily investing in API development in order to provide a better and more efficient customer experience. And looking at the current scenario and gauging the potential of Cloud in the BFSI industry, it would be safe to say that the future of banking is more digital. Moreover, it’s a must for organisations to adapt and innovate to cope with the changing demands and shift to cloud-based systems wherever traditional methods won’t suffice.
Having said that, emerging technologies and the push toward the digital transformation of the BFSI sector isn’t enough to run everything smoothly. What we need to bring successful change is people who are skilled and qualified to understand all the aspects of the industry accurately and who can manage to work with disruptive technologies like AI and implement them in beneficial ways to the BFSI sector.
Authored Article by: