The fintech industry is one of those which spring up with the super wanted contactless services, allowing customers to access financial services safely from home. They thrive by quickly reviving service processes, revamping their operation models, and providing clients with tailored services.
In the advanced mobile era, SMACIT — with its vision, insights, solutions, ecosystems, and experts — is ideally positioned to generate new value. The global infestation of COVID- 19 has disturbed the lives and businesses of countless people, and the transition to digital business models poses huge challenges to every industry.
The Financial Industry Enters a New Era
The COVID-19 outbreak has significantly affected numerous people globally, leading us into a new era, where vertical industries evolve fast to respond with new business models. These firms started their digital transformation with their customers, then moved on to their employees, branches, and finally, the entire organization. As a result of redesigned paradigms and new operating models, the industry has entered an intelligent era.
During this time, the financial industry can take a number of steps to prepare for the future.
Redesign the customer service journey: Banks have begun relying on mobile banking to meet the demand for contactless services after closing their branches due to the pandemic. More financial services can be made available online with the help of financial technologies (FinTech).
Business agility and mobility: Many companies’ strategies include a mobile-first approach, which is specifically incorporated into their organizational principles and key targets, transforming systems, processes, and culture. As a result, financial institutions will need tech experts who are agile and visionary to work with them as consultants.
Smart branches: Bank branches are ever more intelligent and mobile and able to identifying customers, measuring temperatures (in case of a pandemic), and governing services.
Digital payment: As a result, mobile payment has become a necessity, with usage in some Asia-Pacific markets increasing by 60 percent in the first quarter of 2020. A better experience for Internet-savvy customers will require banks to improve their mobile payment service capabilities and seamlessly integrate them with existing banking services.
Digital customer acquisition and operations: In order to better mitigate risks and provide more precise customer service, financial institutions will need to strengthen capabilities such as Electronic Know Your Customer (eKYC).
RegTech development and innovations
FinTech also has a lot of potential in regulatory technology (RegTech). Compliance management and reporting can be automated by automating solutions related to regulatory monitoring. Complicated compliance processes for financial institutions could be simplified as a result. As a result of the use of RegTech, you can manage massive amounts of data faster and more efficiently than ever before. Financing institutions, regulatory agencies, and consumers are all connected through innovation, protecting their interests.
Customer communication: Online services will no longer be constrained by the passing of time, as they are now. Banks will need an interactive platform that allows them to communicate directly with their customers and serve them at any time and from any location.
Cloud architecture: Hybrid cloud is more than just a trend; it’s a foundation. Fintechs can take advantage of the always-on property and scalability to better utilize their resources, such as quickly running Internet-native services and products in a collaborative development mode, which reduces the time to market (TTM).
5G+ trend: In addition to text and voice services, 5G ultra-broadband supports video, Virtual Reality (VR), and Augmented Reality (AR), which broadens the variety of applications, especially data-hungry ones (AR). With 5G, banks can connect with a billion customers, both individuals, and businesses, while providing them with quality services of a wider variety.
Three aspects of the industry must be prioritized to implement mobile-first and digital transformation strategies successfully.
Connectivity: Mobility and digitalization are based on ubiquitous connectivity. A successful online service relies on a fast, reliable, and high-quality network connection.
Digitalization: To maximize efficiency, financial services and operations must transition from traditional to Internet-native and digital.
Cloud, artificial intelligence (AI), and cloud computing will have a major impact on the financial services industry in the future. Worldwide, millions of people have been affected by the COVID-19 pandemic. Financial institutions must be able to adapt their business models and risk control measures more quickly due to digital technologies.