The Financial Services industry is said to be one of the slowest to adopt technological advances. On one hand this is one of the sectors where there’s a huge point of vulnerability for consumers, with financial data being an asset that hackers are constantly after, so it’s understandable that most ‘Finserv’ organizations have taken their time to evaluate the tools and technologies they can bring on board safely and with the minimum amount of risk. On the other, what is a better weapon to fight security issues than technology? While people have taken the chance to argue both sides of the coin, banks, insurance brokerage agencies, etc. have all been taking serious action towards implementing technologies to help them remain relevant and in business.
One of the aspects we’ve talked about at length that is very specific to financial services and their leverage of technology is digital onboarding, as it’s one of the few industries that still has issues allowing for a fully digital onboarding process given the required security checks that usually entail some sort of physical paperwork or in-person verification. As more and more financial organizations have worked towards completely revamping their onboarding programs, this has made way for the buzzworthy technologies to “enter the chat” and allow the banking and insurance industry to finally leverage their full potential. This includes:
- Robotics Process Automation: even though most financial organizations have put off the implementation of some of these technologies due to fear of vulnerabilities and cybersecurity, at this point it’s financially impossible to keep up with the volume of daily transactions and requests to continue to run their businesses without some range of automation. RPA can help speed up background checks, approvals, workflows, etc. freeing up the time of skilled workers to focus on other tasks that require critical human thinking instead of rule-based actions. With RPA, banks can help alleviate the queues of customer questions that come in and allow agents to take care of the more complicated issues while the machines do the work of checking balances and other more regular tasks.
- Cloud computing: have you noticed how most likely your doctor’s office did away with that file cabinet of documents for each patient’s records and now have all the information digitized? Banks and insurance firms haven’t been able to jump on this bandwagon as quickly due to security issues as well as international guidelines for banks to interact across geographical boundaries. With the unleashing of cloud computing to its full potential, customers all over the world will be able to take their transaction power to the next level, as well as move money more quickly than ever before, and sort their issues from wherever, whenever. Starting next year, we will see a whole new dynamic in the world of financial services, and it’s all thanks to cloud computing and the mobile access availability.
- Voice Interfaces: according to Gartner, by 2020, chatbots are expected to handle no less than 85% of customer service interactions. How will this be accomplished? Through AI, machine learning, and the power of voice interfaces joined together, chatbots are soon expected to be able to go as far as providing financial advice. This could be absolutely revolutionizing for the bank and insurance industry, and professionals in this line of business should be aware of the upcoming changes in their line of work, to be prepared to support the technology, and have it complement their skillset as well. This will undoubtedly be a big shock to the older generations still using these services, but at the same time it will standardize and centralize information like never before.
Keeping in mind the limitations and needs that people will continue to have due to cybersecurity issues and geopolitical guidelines for data privacy, the financial sector will see a big overhaul starting next year, where customers will be able to accomplish a lot more without ever having to interact with an individual, banks and insurance agencies being able to reduce their operational costs and margins of error by staggering numbers, and financial industry professionals having to rethink their functions within companies – especially those that do work that can be taken on by a machine almost completely.
This is not a time to worry, but rather a time to act. We have established a tried and true methodology to automating with us, and those who are unprepared for the wave of innovation coming to their field with the turn of the decade, are very likely to wilt away quickly as only the businesses with the technology to accommodate the demands of the market will be able to survive this next wave of innovation. Don’t wait until the last moment to figure out whether you’re ready for your digital transformation. Start now.