The year 2023 will witness remarkable changes in the financial vertical, with a plethora of innovative technologies redefining the sector. These will shape the way services are offered to customers. However, the threat of economic instability is ever-present and casts a shadow on the world.
In response, most financial leaders in India and across the world are carving a roadmap towards change. This includes implementing autonomous finance solutions built on the foundation of robotic process automation, natural language processing (NLP), AI, Cloud and Data Analysis.
Regardless of global uncertainties, the financial ingenuity of the country is triggered by the union of finance and technology, resulting in unparalleled innovation. Among the top digital pioneers in finance working towards healthy financial inclusion in India is Sanjiv Bajaj,
Chairman and Managing Director, Bajaj Finserv Ltd.
“We are seeing a significant adoption across different aspects of the digital world, even in financial services (a heavily regulated sector). Institutions, especially incumbents, will need to adopt digital as a way of life. The last year and a half have dramatically increased adoption across various customer segments. That is why the requirement of very solid, stable and scalable cloud infrastructure, becomes a prerequisite,” concludes one of the famous finance personalities in India when discussing the significance of fintech in strengthening the economic climate of a nation.
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Incorporating Adaptive and Agile Banking Methods
According to a Gartner report, 80% of traditional banking processes will cease by 2030. This implies that incumbent financial players must adopt digital business to stay in the game. Increasing agility by being competitive and working at higher speed and efficiency is the need of the hour. Financial organisations that can stay nimble amidst this changing financial landscape will stay afloat.
As one of the top digital pioneers in finance, Sanjiv Bajaj rightly remarked that digitisation reduces the relevance of a less monolithic structure in the coming years. Rightly said, he adopted the correct strategy for the digital world, offering customers of Bajaj Finserv and Bajaj Finance frictionless access to a diverse spectrum of financial products.
Improving banking services by incorporating agile techniques will hinge on focusing on a product-centric model. Adopting this strategy helps financial companies mitigate unforeseen risks and manage unmounting pressure that comes with amendments in legislation and banking rules.
Considering the financial sector to be an evolving landscape, the newer entrants providing digitised services can change the face of the industry, with consumers adopting newer ways to access financial services. Innovative financial services are critical to keep pace amidst the changing landscape.
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Driving Efficiency with Machine Learning and Artificial Intelligence
Incorporating AI and ML in the financial sector can help boost the efficiency and effectiveness of offering services. These technologies allow analysing, gathering and sorting datasets to happen almost instantly. Furthermore, financial organisations can bank on these error-free data-driven insights to initiate actionable plans.
Reports cite that by 2026, around 85% of organisations will leverage the benefits of AI and ML to augment their business foresight. That said, incorporating these technologies to study customer behaviour and personalise service offerings in the foreseeable future can help any business scale to greater heights.
With data being the most valuable commodity in the market now, using these technologies is key to making the most of it.
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Embracing Cloud-native Systems to Minimise Operational Expenses
Incorporating cloud-based systems increases an organisation’s agility and lowers operational costs. The fact that organisations can deliver the right product at a faster pace is what makes them stand apart from the crowd. The end result is a better customer experience, as applications developed in this environment perform naturally well.
Partnering with a cloud-native system also plays a critical role in ensuring the efficiency of employees when working remotely. With hybrid work playing a strategic role in the coming years, it becomes easier for employees to access financial data anytime and from any place.
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Prioritising Cybersecurity to Prevent Digital Fraud
With digitisation being the disruptive force in the financial sector, cybersecurity plays a critical role and will continue to become the top priority. Around 42% of businesses feel digital frauds prevent innovation and stagnate expansion.
Any breach in an organisation’s security damages its reputation and poses a major threat to its customers’ financial and personal information. This not only results in losing a potential customer base but also causes a financial organisation to lose out on revenue.
Some financial entrepreneurs in India and across the globe were able to nullify the effects of cyberattacks by implementing strong cybersecurity measures in place. Hence, prioritising cybersecurity in 2023 and beyond is critical for any organisation to stay ahead of the curve.
These trends will continue to accelerate the financial sector’s evolution and redefine the industry on the back of digitalisation. How fintech and traditional banks leverage these contemporary means of welcoming more people into an equitable, inclusive and sustainable future remains to be seen, but there is no doubt that the finance industry is expected to grow stronger and better.
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