Digitization of the financial industry

It is time for digitization of the Financial Industry

 

The digitization of the financial industry is a process in which we have been immersed for a few years. The adoption of new technologies means greater efficiency and cost savings for financial organizations, but it goes beyond simply eliminating human errors, automating processes, etc. Digitization of the financial industry implies a change in the financial model at a transversal level, affects both regulators, operators and consumers. We face a paradigm shift!

This change is being motivated by the increase in the past due portfolio, the low profitability of the business or a lower solvency are some of the warnings that the financial system is issuing so that financial companies change their business models included the inner philosophy of the companies themselves. A new holistic approach has been adopted to offer products and services to customers seeking a first-class experience before, during and after their purchase. The customer-centric vision has become standard in today’s financial business world.

What are the characteristics of the digitization of the financial industry and the adoption of a customer-centric vision?

As its name indicates, the key to the new financial business model is based on serve customers at the right time, with the right level of service and at the right correct cost. Now customers expect custom portfolio and pricing combinations. Digital finances allows personalization, providing data and analysis capabilities needed to examine the profitability of each customer and offer individualized or segmented products and pricing. Customers choose the companies based on convenience and quality of service rather than product and service features, all this is possible thanks to the digitization of the organization, but which technologies are we referring to?

 

Identity verification is the foundation of many of the processes associated with digital financial services, to subject your clients to strict identity checks, both to protect the finances of those users and to meet the demands of regulatory compliance.

For this, digital identification solutions can help solve these identity verification problems, providing in the process a basis for financial companies to operate in a digital way. Digital IDs, when done correctly, can help financial companies alleviate identity verification pain points for their customers while helping them reduce operational and compliance costs.

 

In relation to the previous point, Customer onboarding refers to the business process to enroll customers by generating a digital identity profile on a digital platform. The customer’s journey starts from here by uploading its general and specific personal data to verify the real identity. With a customer onboarding platform, it is possible to verify, collect and manage clients’ data through a safe procedure and in a protected digital space.

 

Digital Signature is a technology that allows any kind of document to be signed remotely, in real-time and with full legal effect, thanks to the certificate of evidence generated by each transaction. Time is of the essence as fiancial work to distribute these funds, and the adoption of digital signature technology with built-in capabilities for audit trails and workflow automation can dramatically streamline the process. This technology implies the materialization of the digital model, the conversion of clients and the entry of cash flow in the financial institution.

These are just a few of the technologies that are making change possible. However, the digitization of the financial industry is a continuous process, where technology, beyond dehumanizing the relationship of users with companies, must have the opposite effect, being able to integrate the benefits of technology and a customer-centric philosophy. Tools evolve but there is a constant in every digital transformation process: Data provides information that in turn must be converted into business intelligence to know at all times how we can retain our customers through a satisfactory experience and responding to their true needs.

 

Are you passionate about digital?

Do you want to stay up to date with our latest news and posts about Digital Transformation?

We are on Twitter and LinkedIn. Follow us!