From automated banking solutions and prepaid cards which can be leveraged across multiple touch points, to contactless fuel payment solutions offered on open-loop platforms, customers in the highly competitive BFSI (Banking, Financial Services, and Insurance) sector are now keen on experiencing enhanced digitalisation in every part of their day-to-day consumer journeys. Indeed, prioritising customer experience (CX) and offering them easy access to next generation fin-tech solutions has emerged as a crucial determinant of success for BFSI players, with statistics underscoring the significance of CX initiatives in driving tangible business outcomes.
Research indicates that banks focusing on CX can anticipate a remarkable 55% increase in Return on Investment (ROI), emphasising the direct correlation between customer satisfaction and financial performance. Further, CX leaders within the banking industry enjoy nearly double the recommendation rates compared to their laggard counterparts, even as institutions that consistently optimise customer experience observed growth rates exceeding three times those of their peers.
Digitalisation driving optimal CX
While these statistics serve as compelling evidence for the pivotal role of customer experience in driving business success within the BFSI sector, how can the still largely traditional domain emerge as a strong proponent of optimal experiences? According to a Digital Banking Experience Report 2023, Artificial Intelligence (AI) is increasingly becoming a pivotal element in the digital transformation strategies of banks, catering to the rising demand for digitalisation among customers while enhancing operational efficiency.
Executive Director
AGS Transact Technologies Limited, which offers digital payments through ‘Ongo’.
Nearly half of the banks surveyed (47%) are planning to integrate AI into their operations even as traditional banks face challenges in providing seamless, personalised digital experiences. Banks which do not prioritise digitalisation also risk losing customer trust and business, as indicated by 51% of consumers who believe their bank lacks interest in maximising their financial gains, and 27% who feel offered financial products are unsuitable. The landscape indicates a crucial juncture for banks, where embracing new age tech and accelerating digital transformation efforts are imperative to sustain competitiveness and customer satisfaction.
Key payments tech at play
In addition to AI, which remains the frontrunner in BFSI digitalisation, payments technologies such as analytics, big data, blockchain, machine learning and cloud computing are now bolstering scalability, robustness and optimal CX in the segment. Accordingly, the imperative sector must now focus on building next generation digital platforms, enabled by a modern tech stack, to unlock seamless customer-centric designs, hyper-personalisation, and omni-channel experiences. Together, these technologies can drive enhanced efficiency, reduced costs, and innovation across products and services.
Ensuring scalability & robustness
In this rapidly evolving ecosystem, the integration of scalable and robust payments technology is not merely a choice but a necessity for BFSI proponents and the best approach here is to partner with fin-tech solution providers who have a proven edge in the field. The digital era has ushered in a plethora of challenges and opportunities, demanding BFSI solutions that are not only innovative but also resilient, adaptable, and customer-centric – scalable applications play a pivotal role in this transformation, revolutionising BFSI technology to foster agility, customer satisfaction, and operational efficiency. These solutions must be designed to effortlessly accommodate growing customer demands, ensuring seamless performance even during peak periods while optimising costs and resources dynamically. Further, scalable BFSI technology must uphold stringent security measures and compliance standards, safeguarding sensitive customer data against emerging threats.
As BFSI institutions navigate the complexities of the digital age and strive to offer seamless CX to an increasingly discerning clientele, scalability, adaptability, and innovation, as unlocked by fin-tech partners, emerge as indispensable pillars for sustained growth and success in an increasingly competitive landscape.
