Prabhjinder Bedi,
Chief Growth Officer - Tech Mahindra Business Process Services

It may have been ages since banks were regarded as a place with long queues and delayed operations. And when we thought ‘anytime and anywhere’ banking would be the pinnacle of its revolution, the digital age took over, making the whole experience easy, quick, and error free.

When we say digital banking, it doesn’t only mean the ‘touchscreen’ experience that we as users have become too used to. A complete digital transformation revamps every aspect of BFSI from commercial and retail banking to payment, insurance, claim, and overall wealth management for an unprecedented customer experience in banking. It unifies operations and a plethora of information seamlessly so customers can always stay connected and engaged, experiencing personalized and outcome-based banking like never before. 

Let’s look at some of the digital trends that are ushering in digital transformation in banking

Cybersecurity in Open Banking

Third-party vendors and collaborations have become indispensable in banking since it is a highly interconnected sector focused on open banking services. And while these collaborations generate innovative products for banks with customers as end users, they also pose an increased cybersecurity threat. And if banks cannot efficiently monitor third-parties and ensure compliance, they may end up in a vulnerable position.

This is the reason the banking sector is becoming increasingly stringent, striving for full visibility not just with the third-party infrastructure but with customers too. Data encryption solutions cater to customers’ security needs. Moreover, the use of AI and machine learning to detect fraudulent activities and threats also improve continuous monitoring capabilities.

Chatbots and Enhanced Self-Service

Robotic process automation (RPA) is a huge contributor to the transformation in banking services that we’re observing today; it caters to the need of round-the-clock service availability. Customers want to be able to make a transaction or seek service support anytime, anywhere. And this is where the role of AI-powered chatbots comes into play. With the use of bots, banks can offer instant customer service via chat. And the way we have leveraged AI today is commendable looking at how chatbots can offer such personalized customer experiences from financial product recommendations to card payments and other transactions. 

Automated Product Recommendations

Artificial intelligence enables processing large volumes of data in financial services, enabling customer categorization and an overall better understanding of customer behavior. Further, predictive analysis enable making automated product recommendations while keeping in view the current market sentiments. What we see casually while using banking services is the work of highly intelligent software that learns from customer data to help customers.

As a result, customers can benefit from information like best time to invest in stocks, well-performing markets, profitable plans and accounts, potential data threats, etc., to make better, more informed decisions.

RPA for Faster and Smoother Banking Service

Banking organizations record millions of datasets and transactions in very short spans of time. Completely error-free and fast operations in a manual setup can certainly not be imagined in today’s banking scenario. Automation is a total game-changer which automates repetitive tasks so processes are faster and more efficient.

Automation doesn’t only allow for managing customer experience transformation in banking, but it also benefits banking institutions by lowering costs and reducing customer churn. An investment in technology like this helps financial institutions reengineer their complete processes to ensure improved efficiency, revenue optimization, and seamless scalability.

Tech Mahindra’s Next Gen Banking Solution

Banking as a sector gets upgraded almost every day and financial organizations must go digital to make the whole system customer-centric, accessible, and personalized. At Tech Mahindra, we offer next gen digital solutions for both retail and commercial banking along a spectrum of services from payments, cards, and asset management to insurance and claim management. Streamlining front office and back office operations, our digital banking solutions enable building a centralized, faster, and more organized system. Some of our offerings include:

  • Automation of front and back office operations
  • Digital channels such as visual IVR, virtual agent, and chatbots
  • Predictive analytics for customized banking products and services
  • Blockchain for faster and secure payment processing and settlements
  • Process reengineering solutions to eliminate process gaps and increase productivity

The need for digital transformation has been fueled by the ever-increasing customer expectations and requirements. And at Tech Mahindra, we help build technology-enabled, purpose-driven businesses focused on delivering the right and trustworthy experience.

Our next gen banking solutions are a part of our NXT.NOW framework where solutions are deployed at multiple business layers with the goal of improving CX. Our cognitive capabilities facilitate hyper-collaboration in banking, increasing the range of products and services for customers while ensuring the most secure exchanges and operations.

About the Author

Prabhjinder Bedi,
Chief Growth Officer - Tech Mahindra Business Process Services

Bedi has over two decades of experience involving launching start-up ecosystems, scaling-up businesses, and successfully taking products and services to market across industry verticals, spanning telecom and media, hi-tech/new economy, financial services, retail and consumer goods, manufacturing, and life sciences. Having spent over 16 years at Tech Mahindra, Bedi is currently responsible for taking our existing and new-age service offerings to global markets and adding meaning to our shareholders, partners, and customers. Bedi is a bachelor’s in engineering from IIT, Benares and a Master of Business Administration (MBA) from IIM Calcutta.