Impact of Digital Transformation in Banking and finance

Digital transformation – It is the process to use digital technologies for making and changing existing   culture of business processes and customer experiences to meet requirements of changing business and market. This modifying of business in the digital age is called digital transformation. The use of Digital transformation is for resolving problems of customers of banks and financial industry. Now Digital Transformation in Banking and Finance has positive impacts with great experience and convenience of customers.

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The traditional roles of business and banking system are customer service, marketing and sales. But in latest digital transformation starts and ends with how to manage and engage with clients. It utilizes cloud computing, decreasing dependence on hardware of user but increasing dependence on subscription which is based on cloud services. There are some of the digital solutions that increase the capabilities of old software products such as Microsoft Office compared to Office 365 at the same time and others are cloud based for e.g. Google Docs.

There is one main feature of digital transformations is the concept of paperless or reaching a digital business maturity which affecting individual business and entire segments of society such as science, art, medicine , mass communication and government.

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As per McKinsey Global Institute in 2016, Now Europe is operating at 12 percent of its digital potential whereas the United States is operating at 18 percent.

How Digital Transformation in Banking Operations is changing Our Lifestyle – Digital transformation changes the operations of banking system which is very easy to operate. First of all avoid use of paper and details are saving in computer. Whenever you want to check then simply click n your name and examine the details which saves the time for searching the paper. Digitization of banking operations increases the use of computer, smartphone and laptop.  If you want to detail of transaction in month or year then bank send a message on the smartphone of the customer which avoid the use of passbook. Users can also operate banking system from home by using SMS system in which detail of account, and send and received money to family members, friends or for business purpose use several types of payment system such as Google Pay, Paytm, and many more avoid come again and again for work which saves the time and money. . You also pay bills of electricity by using these payment systems instead of standing on the line which saves the time. If you want to shop in the market and you have no money on purse then with the help of digital technology use credit card or ATM card for shopping and avoid to visit the bank for money.

As per research, those company who are refusing with the use of digital technology then loss of 35 percent profit while banks are move with the use of digital technology could gain more than 40 percent profit.

Now increase the use of digital banking, most of the customers not need to visit branch of bank for any work. Majority of the work of the customers are done with the help of digital technology such as transactions, sending or received money, or many more. Mobile banking is one of the best technology in which several work are done easily in few seconds that saves the money and time of the customer.

Digital Disruptors – It is a body that effects the behavior and fundamental expectations in a market, technology or process, culture, and industry which is caused by digital capabilities, and channels or assets. It is the change which occurs when latest several digital technologies and business model affect the value proposal of existing services and goods. With the rapid increase of using smartphones or mobile devices for the use of personal work then  sift sometimes is called as consumerization of IT. It increases the possible for digital disruption across some industries.

At present Uber, a taxi app is the perfect example of digital disruptor that allows customers to track their taxi by using GPS technology and pay with a smartphone. There are some popular disruptors such as WhatsApp, Uber, Spotify, Skype, Airbnb, and Netflix.

Why digital transformation matter in finance? – The concept of digital transformation in the finance industry that has now become a part of successful strategy of business as compared to just technology.

The positive impact of digital transformation on finance industry leads to cost-effective operations, improved the experience of customer and employee, meeting regulatory deadlines and increase opportunities which helps in accounting and compliance management. It lowers the risk and error by the adoption of healthy strategies.

Digital transformation has also positive impact on the business operations in the finance industry. As a result, digital transformation now becomes a business strategy instead of technology strategy. With the rapid use of mobile apps and digital technology, the positive impact of Digital Transformation in Banking and Finance with great with greater experience and convenience of customer.

How Digital transformation is possible without the big budgets? – The use of digital technology is n worry about large investments and big money. A new breed of banks has emerged called as challenger banks in the United Kingdom. It primarily focuses on delivering digital-only services and exceptional customer interactions. Some of these investments of $100 million or less and their offers are attractive and budget also includes getting the bank license that price about $30 million on average.

Now most of the companies are financial technology companies in the market which have change the code into digital core and provide reduced price and streamlined process. These financial technology companies have allow a digital culture which is incorporates and sustainable the benefits of digital innovation in creating business. It focuses on providing a faultless, engaging experience of customer.

It is important to note that these companies have investments from angel investors and incubators now and then amounting to a less or more than $20 million or even lesser.

With the increase the use of digital transformation, not need to spend big money due to several companies in the market with the expertise and essential knowledge or banks to spend smaller budgets for achieving a lot.

Conclusion – In this discussion we conclude that with the increase the use of digital technology it positive impacts on banking and financial industries. The main use of this technology is it saves time and money of the customer.

4 Comments Add yours

  1. Jyo says:

    Great content👍

    Liked by 1 person

  2. Great article! You might be interested in what I’m trying to do as well! Check it out: https://thefiscalteen.finance.blog/

    Liked by 1 person

    1. daneelyunus says:

      Thanks for appreciation and reading my post

      Like

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