Digitization in the banking and financial sector can prove to be a gamechanger for the industry, leading to new opportunities, and a better experience for both.
The proliferation of smartphones in the Indian market has led to more people going digital with their day-to-day needs.
So, be it making online transactions using a payment gateway for eCommerce, shopping for daily essentials, traveling, etc.
People are more used to using digital options as compared to going out to achieve their objectives.
What is the BFSI sector?
The BFSI sector entails all banks, NBFCs, insurers, microfinance providers, stockbrokers, etc. In short, any organization that falls in the financial category offering products and services in that domain falls under the BFSI sector.
Ways in Which Digital Transformation Can Help the BFSI Sector
Today’s clients are internet savvy and prefer conducting most of their daily business online, be it banking, applying for loans, shopping for products and services, ordering food, etc. Therefore, the BFSI sector must embrace modern-day technologies to provide the best of services to this new tech-savvy clientele.
Digitization can lead to several benefits, including:
- Process Efficiency: By eliminating the need to perform manual tasks and processes, it reduces the scope of errors. Digitization can help in enabling technologies such as digital signatures and smartphone banking, and the entire process becomes automated making it much faster and more efficient.
- Enhanced Customer Experience: Providing a stellar customer experience is important in a cut-throat market, where the customer is spoilt for choice. Unlike traditional methods; digitization can help businesses offer a brand experience like none other. By offering customized products and services targeted towards individual customers, the BFSI sector has much to gain.
- Make Better Decisions: Real-time accurate data, thanks to digitization, offers insights into the customer’s behavior patterns, spending habits, and preferences helping businesses make informed decisions, and pitch specific products and services to specific customers.
- Increased Sales Volumes: Digitization can help organizations in the BFSI sector offer value-added services that can help retain customers leading to increased sales. In a changing world, where every organization is eyeing the same category of customers, it’s important to stand out and offer services before the competition can get up to speed.
- Push for Innovation: Since you have access to advanced analytics that give you accurate insights into the customer’s behavior patterns, and preferences for specific products and services. You can use that information to come up with better products and services; moreover, it can help identify loopholes and plug them early on.
- Increased Brand Reputation: A positive experience will always lead to an increased trust in the brand and ultimately result in more brand recall. By customizing products and services to don the fonts, colors, and logos of your brand, you can ensure a consistent brand presence. Moreover, it also helps in better marketing of the brand across social media channels, and other marketing channels by adhering to a customized style guide that is consistent across all channels of marketing.
- Reduction in Overhead Costs: Digitization automatically helps businesses cut down costs. Automating the entire process of transactions, via net banking, phone banking, etc. reduces the need to hire additional staff, and put existing staff on more productive tasks rather than taking care of repetitive and redundant activities.
If you are in the BFSI sector, then eventually you will need to embrace digitization for your business. Therefore, it pays to partner with a reputed payment gateway system in advance to benefit from the changes that you would need to make tomorrow, today.
And with so many benefits that come with digitization, it makes for the better business sense to go digital, and allow customers to access products and services designed using advanced insights targeted towards their needs, you can get more business, and retain more customers than ever before!
