5 Ways Financial Organizations Are Digitally Challenging the Status Quo
Effective change always requires flexibility—the flexibility to adjust to new opportunities, to new horizons, and to adapt to growth. For just about every organization undergoing a digital transformation, major changes will affect business, employees, processes, and results. This kind of change can be awkward as it requires organizations to look inward and challenge the status quo. Let’s look at some of the specific technical drivers for digital transformative in financial organizations these days and how these drivers have forced them out of their comfort zone.
1. Smart Bank Accounts
In the past, banks made profits simply by improving standard customer service processes. Today, we see a distinct change in the interactions between financial providers and their customers. With an increasing number of transactions made online, access to digital technologies allows significant time savings and the ability to be more agile and flexible. Fidor Bank, a leading digital bank located in Germany, created smart accounts for its customers that make it possible to exchange currencies, make account transfers, and take out loans. These innovations attract more customers by providing a transparent and interactive approach for managing money, earning the bank various awards and recognition.
2. Financial Advisor Mobile Apps
Mobile development is a crucial element in the digital transformation trend, especially within the financial services industry. Mobility helps financial organizations significantly increase customer interactions, improves document processing, and speeds up transactions. As an example, UBS, a global Swiss financial services company, went mobile by developing its FA Mobile app. This custom application gives financial advisors instant access to customer information, giving them the ability to offer better solutions and services. The app significantly improved data collection and document processing and meets all security standards. These improvements allowed UBS to provide more value to its clients with wealth management, document processing, and investment banking.
Blockchain technology was previously associated only with the digital currency Bitcoin. Today, however, we are seeing blockchain widely used for various applications to assist with secure and rapid payment services. American Express initiated their blockchain project in 2017 to provide its customers with instant secure payments, significantly increasing the speed of transactions from several days to just seconds.
Artificial intelligence has seen wide adoption among financial services companies aiming to streamline customer interactions. Properly implemented, chatbots are able to offer prompt and effective communication and to serve as diligent agents ready to assist customers 24/7. For Wells Fargo, one of the world’s largest banks, improving the experience and performance of the company service level is a key priority. The Wells Fargo chatbot encourages conversations between the bank and its customers in social networks, responds to user questions, and provides information on transactions, account balance, and more. This innovative process allows organizations to save costs on customer service, generates more opportunities for new accounts, and has led to an increase in customer satisfaction.
5. Internet of Things (IoT)
As a rule, the Internet of Things is used to track data on physical devices or appliances remotely. IoT is being leveraged by financial companies as well to assess sensor data from customer devices that could transfer information to financial organizations. For example, car insurance company Admiral Group applies sensors to cars, recording speed, distance, and driving habits of the users. This data can help calculate risk based on drivers’ behavior, giving the company the information they need to make better insurance program recommendations.
Challenging the status quo can certainly bring more opportunities for growth, innovation, and improvement. By staying flexible and adapting to change, financial organizations can stay on top and keep the company moving forward.
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