The journey of the BFSI sector has been transformational, especially when we consider the last two decades. However, the last two years since the pandemic have been the most
transformational as the integration of digitization changed the way people relate to banking and insurance. The closer we get to web 3.0, the more we see this industry embracing technology while slowly replacing conventional operating methods.
The BFSI sector, while initially slow, has now been adopting cloud-based systems to deliver a technologically sound experience to its clients while ensuring it is cost-effective, agile, and self-scaling.
How collaboration with cloud services can help BFSI services?
To survive and thrive in the digital world, banking, financial services and insurance (BFSI) companies must be resilient, adaptable and customer-centric. This is where cloud service can help these businesses by:-
- Accelerate the digitization process, allowing them to serve the evolving business.
- Achieve operational excellence and deliver a seamless banking experience
Cloud-based financial services
Cloud services offer a wide range of possibilities, from building AI/ML apps to hosting web apps. Let’s explore some of these and see how technology is helping to carry out different functions!
1) Data and analysis
Data and analytics play a key role in ensuring a successful digital transformation as they help create effective strategies by utilizing the vast amount of structured and unstructured data for insights. These insights, in turn, help the BFSI industry make better decisions, improve performance, and drive organizational growth.
2) Migration and Modernization
Cloud hosting services provide modern solutions such as containerization, microservices,
modernizing OSS, data stores, and software to automate application migration. East
provides scalability and helps build resiliency.
3) Artificial intelligence
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 it easy to respond to inquiries and meet the specific needs of each client through automation. Machine learning and AI are tools that also help with other things, such as data protection, risk reduction and faster data processing, ensuring that the quality of customer service is excellent and trust is maintained. of customers.
4) Cloud security
Cloud solutions provide a variety of security solutions to protect banking and other information stored in and accessed through the cloud. Operational, infrastructure, and application security help banks stay safe from threats such as cyberattacks, data breaches, and unauthorized access. Financial institutions can greatly benefit from implementing cloud solutions as they are cost effective and increase agility and efficiency. Since BFSI is one of those industries that deals with customers’ crucial personal data, security is one of their top priorities. It is the most important step in gaining customer trust, as we know it is the key to success.
Factors Driving BFSI Transformation
- 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 information from the data dump that is there
facilitating effective decision making. The insights collected are also used to provide
personalized services to customers and increase engagement.
- Robotic Process Automation
By interacting with the user interface of an application, RPA systems can emulate the exact steps as anyone would when working on multiple applications. RPA has successfully addressed the case backlog issue and improved the productivity of global investment banks with respect to case handling. It can also be trusted to reduce manual errors and has immense potential in the BFSI industry due to its scalability, cost-effectiveness, and easy implementation.
- Payments Bank-Fintech Alliances
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 can reach a much broader segment of the value chain, including and serving a much broader customer base.
Banks are currently investing heavily in developing APIs to provide a better and more efficient customer experience. And looking at the current scenario and measuring the potential of the cloud in the BFSI industry, it would be safe to say that the future of banking is more digital. Additionally, it is imperative that organizations adapt and innovate to cope with changing demands and shift to cloud-based systems where traditional methods are not enough.
That said, emerging technologies and the drive towards digital transformation in the BFSI sector are not enough to keep things running smoothly. What we need to bring about successful change are people who are trained and qualified to accurately understand all aspects of the industry and who can work with disruptive technologies like AI and implement them in ways that are beneficial to the BFSI sector.
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