In thise assignment read and anayse the given case study.
5 Ways Fintech is Reshaping the Financial Services Industry
The revolution of financial technology (fintech) is now rapidly spreading around the world and affecting a multitude of processes in the sector, including customer service, financial advice, payments and transactions, lending, insurance services and account management.
- 85% of banks have made of digital transformation a business priority
- 3 out of 4 global consumers are using fintech services for money transfer
- 77% of financial institutions want to innovate more
- 60% of traditional banks would team up with fintech startups, and 82% expect these partnerships to expand within the next 5 years
In the new digital era where customer-centricity is the focus, fintech is innovating with solutions that can better respond to customer needs in terms of accessibility, convenience and personalisation. Here are … ways in which the fintech revolution is disrupting the financial services sector:
Omni [Multi]-channel customer experience
As digital channels continue to dominate the way customers connect with businesses, there’s been a quick shift in user interactions, and banks have progressively moved away from traditional procedures and branch-based activities to operating almost entirely in digital ways.
An omni-channel experience that meets new consumers’ demands involves not only mobile, but social media and multiple messaging channels – email, live chat and SMS. The need to facilitate customer communication through any channel is marking the path forward for companies aiming to achieve true customer-centric operations.
Fintech startups are fiercely emerging in line with this trend, as they can provide the software for financial institutions to adopt multi-channel messaging, combined with AI, machine learning and automations to streamline communication between business and consumers – a winning formula to boost sales and customer engagement.
Customer service chatbots
Some of the main advantages that chatbot technology offers for financial services include speedy response in support delivery for simple queries, pointing customers in the right direction (relevant web pages or service departments), and automating data collection. From the customer’s perspective, chatbots are handy bits of software because – unlike human interactions – they can provide assistance 24/7. Even though some people still prefer human contact for a number of processes, a digital hybrid approach seems now easily viable and most likely to become the ‘new normal’ for financial services.
Automations for financial advice
Robo-advisors or virtual assistants have taken the world of financial advice by storm, imposing a significant threat to traditional operators. These automations are implemented in the form of automated messaging through live chat and other communication channels, as well as workflows that can be built around specific company needs and triggered by consumer behaviours – to power sales and customer engagement. … Automation can help financial advisors and agents in wealth and asset management to capture leads, build relationships with customers, and deliver a more comprehensive service offering
Fast-forward to the future
Digital banking expectations are evolving, forcing the banking industry to reimagine how products and services must be delivered. At the same time, advances in fintech are now encompassing all stages of the customer journey with chatbot technology, machine learning and AI, co-browsing, modern messaging and automation, with more developments are in the way.
The focus for banking institutions and financial services must be to keep a strategy that puts the customer at the centre of their processes, in order to ensure a more seamless and omni-channel experience. Traditional retail banks will need to monitor the digital revolution steered by fintech startups and challenger players in the industry, and consider opportunities for partnerships, open innovation and strategic investments that can considerably improve their operations in line with the digital revolution.