The BFSI sector was already evolving at a fast pace, before the COVID-19 pandemic, driven by the constantly changing customer expectations, growing competition from leading players and the new entrants, and technological advancements, etc. Digital transformation was already underway, well demonstrated by the rise in the number of digital tools, channels, and banks globally.
However, even with these trends, there was no consistency in the customer’s willingness to go digital and firms’ willingness to invest in digital, across markets.
The COVID-19 pandemic toppled such conventions in a matter of few weeks. The crisis forced radical changes in customer behavior and increased their comfort in the digital and spurred their willingness to engage virtually.
Amid COVID-19, 35% of Customers have Increased their Online Banking. – Deloitte
Fintech is Taking the Front Seat, as Competition Increases across BFSI
The COVID-19 crisis has triggered financial technology as the key driver of innovative financial solutions, and it could prove to be a game-changer for digital financial services. With the growing imposed restrictions still in place across various parts of the world, SMEs and low-income households can benefit significantly from the advances in financial technology services and online banking offerings.
While the pandemic continues to augment the adoption of the digital banking services powered by modern fintech solutions, the smaller players in the BFSI are under pressure to rethink their banking strategy to keep their customer base intact. Though Fintech is accelerating the financial inclusion in the remote areas during these challenging times, it has also put a sheer focus on the growing need for change and the current disruption in the ways the BFSI work.
Fintech is Making Banking Services Accessible for Everyone
The growing shift towards the digital financial services was already enabling societies to advance financial inclusion before we entered a COVID-hit world. Growing awareness about the advancing banking technology, coupled with the ease and accessibility for the customers that follow, has been prompting BFSI players to transform.
Fintech is not only taking the financial services to the underbanked and unbanked groups and contributing to inclusive growth but also driving the economic resilience of the SMEs in these times.
The COVID-19 crisis has pushed the financial institutions, banks, and their customers to use digital tools and processes due to the closure of physical branches, offices, and call centers.
Perfect Time for Digital Transformation in BFSI
Digital transformation has become more important than ever for the financial services industry. These testing times have pressurized banks to increase and enhance their digital offerings and have more digital touchpoints with customers. Even the banks that had already started taking baby steps towards digital transformation are calculating the opportunistic value of this situation to direct even more resources toward digitization.
Key Solutions that Banks & Financial Institutions Should Consider!
COVID-19 has proved digital banking is no more optional, and the BFSI players must accept it to stay relevant moving forward. Leading banks and financial service providers are embracing changes by leveraging modern technologies and processes to address operational challenges. They are keeping abreast of the changing customer expectations and market demands and delivering innovation iteratively.
Digital lending has emerged as a tool for banks and NBFCs to face the risks amplified by the COVID-19. NBFCs and banks must consider Fintech platforms and digital lending to get access to wider distribution channels, leverage modern technology to assess credit risk, and seamlessly onboard customers. A loan lifecycle management solution is vital for banks to deliver the borrowing ease to remote customers.
During these pandemic days, the financial institutions are transforming their agent banking into a low-touch channel. Banks are leveraging agents to offer value-added services. For a low-touch agenda, they have started offering agents for merchant services as well. They are also leveraging agents to complete tasks such as limiting branch interactions and onboarding new customers, etc.
COVID-19 is compelling merchants, businesses, and banks to try digital payment platforms such as eWallets, virtual payments, net banking, etc. It has resulted in a spike in the number of digital payment users. Banks can take this grim situation as a perfect opportunity to provide convenience to their customers and build brand loyalty.
Fintech Platform- One Stop Solution for Banks & NBFCs
A banking or fintech platform powered by microservices architecture makes a convincing option for the banks and financial service providers that are seeking ways to accelerate their digital transformation with ease. With all the digital banking solutions in a single converged dashboard, Arttha makes the perfect fintech platform option. Banks and financial institutions wanting to stay relevant in the new-normal world of banking can explore opportunities with Arttha, a Unified Fintech Platform.
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