The BFSI landscape is transforming dramatically

Banking and Financial Institutions (BFSIs) have been at the forefront of digital transformation initiatives with data at the epicenter of banking innovation, in an attempt to fuel performance and improve customer experiences. Competition from a variety of segments including fintech startups, alternate credit companies, retail giants and internet behemoths, complemented by globalization are accelerating digitization at banks. India’s Banking, Financial Services and Insurance industry has been ahead of the curve in recognizing this shift and bridging the critical gaps with transitions that not only boost system resilience but also provide a general ability to innovate at scale and speed.

The new financial architecture created by digital assets will have profound consequences for banks by revolutionizing how money is created, transferred, stored, and owned. This BFSI landscape is transforming dramatically. Aggressive competition from new age fintech startups, growing digital adoption amongst BFSI customers, and the post-pandemic rush to re-establish customer value proposition are driving this evolution. Digital banking surged with 68% of Indian consumers using online or mobile banking to conduct financial transactions.

48% of respondents expect to use contactless payments instead of cash or card in the post-COVID world. The new normal is forcing BFSIs to implement digitization beyond the customer-facing layer, and develop an integrated architecture encompassing all aspects of banking.

Customers are looking for ways to transact while prioritizing their health and safety. Banks need to leverage technology, AI, machine learning, data, and human resources to innovate and digitize the delivery of products and services providing seamless, contactless experiences. Secondly, BFSIs embrace large-scale technology upgradation and digitization in an attempt to limp back to normalcy. IoT - along with 5G and the cloud - is transforming the way banks are operating post COVID.

Seamless customer experiences and transactions while ensuring employee safety and maintaining productivity, renewing operating models to support customers, leveraging technology to minimize operational disruption to processes and mitigating risk will be key. Banks are buying out legacy assets and shared services carve-outs and entering into long-term integrated technologies and managed services support engagements that will further their digital transformation strategy. Going forward, IoT is bringing the banking world closer than ever before, offering clients a completely connected and integrated experience by servicing all their financial needs across devices including tablets and mobiles.

Going forward, enabling digitized transactions and pay-from-anywhere models, every IoT-enabled device has the ability to become a Point of Sale device.