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How New-Age Technologies Are Redefining User Experiences In the BFSI Industry Cutting-edge technology driven by artificial intelligence, machine learning and analytics have strengthened process automation, fraud detection and risk management

By Prabhakar Tiwari

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Technology has left no industry untouched in today's rapidly digitizing world. The banking, financial services and insurance (BFSI) sector has been impacted significantly and it has incorporated new technologies to strengthen its operations, primarily focusing on areas such as process automation, fraud detection and risk management.

One of the biggest differentiators between technologies adopted by the BFSI segment compared with non-financial sectors is its eventual influence in enhancing the customer experience. While BFSI companies have strengthened their backend and operations, the customer experience largely remains complex. Other factors also hindered the digitization of BFSI customer engagement, such as regulatory uncertainties, lack of knowledge and limited tech-comfort of the existing client base. However, new-age consumers currently on the radar of BFSI players are "digital first-borns", and the only way to reach out to them effectively is to speak in a language they are most comfortable in.

Augmenting Processes To Offer Superior Experiences

Realizing the scope and impact brought about by advanced technologies, several companies have been pioneering major changes in the financial space by introducing targeted, innovative solutions to enhance the overall experience for a large volume of consumers. Enabling such a transition is the entire domain of FinTech, which is arguably one of the most promising tech-driven spheres powering the Indian business ecosystem.

Conventionally, people looking to grow their wealth would seek advice from multiple sources. In a true case of "too many cooks spoil the broth', such an overload of suggestions invariably created confusion. However, the modern user is nothing like the previous generation as they like to do things alone and with perfect clarity. Cutting-edge technology driven by artificial intelligence (AI), machine learning and analytics helps them achieve this goal.

These technologies have the ability to process vast amounts of data and provide accurate solutions as well as recommendations in real-time. They are ideally suited for a number-heavy, result-oriented and quantitative domain.

Considering that India will be home to the youngest working population in the world by 2020 with an average age of 29, operators in the BFSI sector need to gear up to cater to the needs of the new generation in the digital age. According to a PwC report, 41% of participants stated that they are likely to choose AI assistants over humans for financial advice in the next five years.

In order to harness the full potential of advanced technologies, the BFSI sector needs to employ them to create a more engaging, tailor-made experience for customers. In fact, BFSI organizations that have already jumped on the tech-bandwagon swear by the increased customer traction and traffic received almost instantly, and the strong customer relationships they help to build over a period of time.

Tailor-made Offerings For Each Customer

Imagine being able to present a customer with what they want, at the right time and via the right channel. They're likely to click on it instantly, and more often than not, purchase it as well. Using AI, BFSI players can enhance the customer experience by personalizing the product and service offerings to match what they are most likely to be interested in, leading to instant positive action.

Most importantly, these technologies do not need additional data or other infrastructure to be of use. AI-driven technologies are able to study underlying patterns and unearth valuable insights through past searches, clicks, keywords and other online behavioral footprints. By taking a deep dive into their preferences, businesses are also able to offer an enhanced standard of service that exceeds every customer's expectations.

Enhanced Engagement And Instant Responses

Conversational AI, more commonly known as chatbots, are one of the simplest yet most effective ways for companies to amplify their customer engagement. Across industries, these new-age engagement facilitators are smartly tackling customer service requirements, through their ability to deliver instant and accurate responses to basic queries and the fact that they are available 24x7.

Powered by natural language processing, chatbots can be programmed with predetermined data to chat with customers in a human-like manner, learning more with each interaction through keywords, thus enabling them to provide satisfactory solutions and recommendations. In a consultation-heavy sector such as BFSI wherein a user would like to have a constant advisor to strengthen their decision-making, the potential for chatbot deployment is massive.

Automated investment advisors, often called "robo-advisors', are automated tools which use AI-ML and predictive analytics to study user data, and present accurate suggestions regarding their financial goals. Basic systems help users create a financial plan, design an asset mix and monitor markets. However, companies are now coming up with better evolved, robust rule-based investment engines that cover a multitude of services from end-to-end while carrying out the actual transaction itself. In this way, these solutions not only plan, but also execute financial decisions according to the user's viewpoint and on-time.

The Way Forward

The above-mentioned are only a handful of ways in which FinTech solutions are optimizing offerings to revolutionize the customer experience. While the widespread implementation of these stands to transform conventional BFSI services for the end-users, a diverse landscape like India brings with it other aspects to consider. The need, especially in terms of customer experience, is to lay emphasis on the question—"Who are the intended end-users?" and broaden this base as much as possible.

Advanced technologies can help BFSI players emerge as a guide-by-the-side for users, enabling them to answer their own financial queries by themselves. In what is otherwise perceived as a purely transactional, dry sector, FinTech solutions can transform the BFSI space into an exciting one that keeps them on top of consumer's minds (and in their palms!). By giving them the satisfaction of taking independent, perfect financial decisions from a single source while remaining an efficient background enabler in the process, these technologies are most suitable for the new-age, "smart' users.

Prabhakar Tiwari

Chief Growth Officer, Angel Broking


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