In today’s digitized era, technology continues to transform the way we interact and transact across industries. Banking, Financial Services and Insurance (BFSI) is one sector that has seen an extremely high degree of technological changes. From the good old days of chatting up with the friendly bank cashier to transferring funds within seconds from your mobile app, we have come a long way. Artificial Intelligence (AI), Blockchain, Cloud Computing, Chatbots and Big Data are few tech trends that are driving BFSI today. According to a recent PWC study, Artificial Intelligence alone has the potential to result in an estimated cost savings of $447 billion by 2023, with front & middle office operations accounting for $416 billion. Here are some of the key trends that’ll continue to be at the forefront for BFSI sector:
• Chatbots: From standing in the queue we have answers at our fingertips on our smart devices through chatbots. They are no more just programs developed to greet and collect leads. Chatbots today can offer smart financial tips, detect fraudulent activities and even assist customers. They can make smart conversations with millions of customers at a fraction of cost, eliminating human intervention and resulting in higher productivity.
• Cloud Computing: This is technology for storing data and delivering computing services including servers, databases, networking, analytics over internet. Cloud Computing makes 24/7 banking truly possible from anywhere and enhances agility of financial institutions. It also enables secure online payments, online transfers and digital wallets.
• Robotics Process Automation (RPA): RPA tools will be widely used to automate financial processes like accounts payable or receivable, data preparation and reconciliations. Robots & Virtual Assistants will accelerate speed of operations, reduce labor costs, minimize errors and provide instant customer resolutions in labor-intensive processes like insurance claims, credit card processing etc.
• Blockchain: This technology, first used in Cryptocurrency Bitcoin, is a distributed database that can keep track of transactions in a secure, verifiable and permanent manner. Blockchains are highly secure and transparent and relatively cheap to operate. They can change the way capital markets work by tokenizing traditional bonds, stocks and other assets. They could also eliminate manual data reconciliation for bank ledgers.
• Cybersecurity: As BFSI institutions deal with sensitive and personal information, this is one area that will see high investments. Cybe-risks will require a proactive approach and security roadmap to mitigate threats, identify vulnerable areas and invest in technology for data security.
The above are some of the key trends that will have a huge impact on BFSI sector and offer more agile, secure and convenient solutions to customers. On the other end, these technological interventions also mean a huge shift in the role of human capital traditionally deployed by the industry. With AI, Blockchain and Chatbots taking over traditional roles, hiring in BFSI will see a significant change from skill-set perspective. Higher usage of technology will also mean more skilled manpower in these functional domains with an ability to operate and supervise tech-aided roles.
From tokens to technology-disruptions
