Impact of BFSI Digital Transformation in Covid-19
Outsourcing in the banking and financial services industry has been happening for a very long period of time and we have seen that it has matured and is very stable, currently.
In today’s time, digital transformation in banking measures that are being leveraged upon are mobile banking, mobile payments, automated investment apps, insurance, trading amongst others. The process of leveraging banking automation services surely acts as the catalyst to create a seamless experience and build a network of recurring customers, especially in the testing times when pandemic hit in the form of Covid-19.
This new culture is the one where the outsourcing of customer service has to be done carefully, taking into consideration long-term engagements and defined business outcomes as a part of the relationship between the bank and the service providers. In fact, service providers need to invest in long term partnerships while creating a framework, which includes multitude of services other than customer service, which is the main part of the ecosystem.
We are now seeing a difference and have now entered a phase where we are seeing the changes that come along with banking digital transformation impact decisions of outsourcing.
Before Covid-19 we had a structured and staggered approach to outsourcing. Almost all industries used a similar template for their own outsourcing.
The banking digital transformation processes during Covid-19 crisis acted as a boon to customer expectations for banks have increased significantly and a being accelerated by pandemics.
Banking and financial services have in fact grown to be one of the more stable outsourcing industries that work with partners and vendors for longer periods of time most of these relationships are multi-year relationships and they have a certain amount of regulatory oversight.
If we look at what has happened since Covid-19 struck is that we are now moving to a page where banking and financial services along with their outsourcing partners are looking at advanced levels of digital transformation for the business as well as demands of digital transformation from the customer.
The customer demand for transformation from the customer is growing at a pace that has outstripped the ability of businesses to keep up with customer demands.
The banking and financial services industry is increasingly demanding that BPO services partners and BPS banking vendors work with them on crucial aspects such as risk management, cyber security and analytics.
Traditional outsourcing is still a very big part of the business that comes out of the banking and financial services industry but this has turned on its head during the Covid-19 pandemic and risk management and customer experience are increasingly becoming key factors of difference for a banking and financial services form to make a choice among the market players.
Superlative Customer experience has become the new norm along with a higher focus on Risk Management.
Customer and risk analytics are increasingly becoming points of consideration for banking and financial services when choosing a partner as these have a direct impact on branding as well as regulatory oversight.
We are increasingly seeing digital payments becoming more prevalent and cash being replaced with digital payments and also the fact that banks are increasingly looking to reduce the physical footprint and become digital-first. In such an environment customer protection, risk and cyber security management and analytics become high-value banking business process services that require dedicated professionals constantly looking at the data generated.
One can predict that in the days to come a good partner in such an environment can also help in product management and new product development that can identify new and niche markets and customers and will be able to service their requirements in a targeted and concentrated manner.
The mutation of outsourcing from traditional functions to new age requirements was in the works; Covid-19 merely made it faster leaving most businesses looking for agile BPO services partners who understand customer demands before the customer actually stated it.
Later on you could be visiting your nearby bistro and before you request you get a message from your manage an account with a limited time special for a free espresso, to boost the on-loading up of their banking application. Once completely on boarded the bank can impart and uphold their clients in their financial necessities all the more really. With mechanical advancements like this, banks can further develop client steadfastness, maintenance and develop their client portfolios.
The fate of the branch procedure will incorporate a local area monetary administrations center point model. Here banks consume a similar retail space as different organizations.
Clients who expect face to face financial administrations will actually want to visit the center point, where they will be welcomed by an advanced associate who distinguishes the client and guides them to the pertinent financial assistance.
By offering a premium for the conventional financial experience, banks can cut out new income valuable open doors while provisioning for clients who expect eye to eye banking. It is vital that the fate of banking obliges the people who can't, or probably shouldn't, utilize advanced administrations - also the individuals who do.
Author:
Sumit More
Sumit More leads the practice and has 2 decades of experience in Enterprise Transformation and Program Management. You can contact him at ha00600579@techmahindra.com.
