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How digitization has transformed financial services

How digitization has transformed financial services

Today’s world is digital. Technology puts customers first and offers them many new choices, conveniences, and courses of action. Most of the digital consumer actions are almost always accompanied by a digital financial transaction. For example, a food delivery order, booking a ride, purchasing furniture online, placing a request for home repairs, or saving for retirement. In less than a decade, financial choices and actions people make daily are driven by technology-based banking and financial facilities.

Digitalization in the banking sector is not new. All the activities like physical cheque processing automation through magnetic ink character recognition (MICR), the introduction of electronic payroll distribution by businesses and companies, dispersal of money by automated teller machines (ATMs), or the rise of mobile banking and fintech applications have been gradually driving the digital transformation of financial services. However, today the choice is limitless for consumers, from independent mobile apps to aggregators, wallets, and internet banking services.

On the lending side, too, financial institutions have seen complete transformation wherein every step in the process from origination to settlement is digital. NBFCs and fintech startups are leading the way from the frontline of this evolution.

Companies can reach more and more customers through new digital channels and partners, mostly as more consumers prefer engaging online post the pandemic.

Additional Read: Steps to Apply for a Channel Finance Online

Artificial intelligence, machine learning, and advanced analytics help provide automation for internal and customer-facing processes, enabling smarter and informed decisions. These emerging technologies allow better efficiency in operations and offer personalization with tailor-made solutions considering the customer’s historical transactions and preferences.

Let us look at the way technology has changed financial services:

Automation for the win

Robotics Process Automation (RPA) has proven to speed up the day-to-day operational processes five times while being cost-efficient. By automating standard operations, financial services companies can become leaner while offering better visibility and services to the end-user. Automation also enables financial services professionals to free up bandwidth from everyday operations to focus on high-value activities leveraging their capabilities.

Digital onboarding

From requiring massive paperwork for secured loans to validating KYC online and accessing funds at the click of a button, it is safe to say that the financial services industry has come a long way. One of the most significant time-savers, thanks to technology, is the digitization of the onboarding process. For companies like Tata Capital that had the foresight to adopt digital onboarding even before the pandemic, this turned out to be a gamechanger as the business could go on uninterrupted in the pandemic induced lockdowns and remote working scenario.

Real-time visibility and control

Fintech has witnessed massive growth in recent years. Several applications and websites help customers manage budgeting, savings, investment, and payments efficiently. Traditional ATMs and debit cards have moved away from the limelight, and digital banking services shine brighter than ever. Customers can use these tools to categorize and track expenditures, monitor investments, and execute transactions seamlessly.

At Tata Capital, we leverage technology advancements to provide our customers with a comprehensive and intuitive interface that offers real-time visibility and complete control to manage all their financial transactions.

Improved risk management and compliance

Financial institutions are better equipped to detect suspicious activity, identify theft, and detect fraudulent activities using AI-powered predictive algorithms. Machine learning integration with artificial intelligence has improved risk monitoring to recognize real-time fraud. Such software has also automated the creation, digitization, and storage of compliance documents, making it easier for financial institutions to adhere to reporting guidelines.

Additional Read: How Can Channel Financing Help You Manage Your Supply Chain Better

Customer Service

At Tata Capital, our fundamental purpose revolves around creating value for customers.
In order to provide higher customer satisfaction and convenience, Tata Capital has launched WhatsApp Chatbot for Channel Finance and Term Loan customers. These are one of our endeavors to always put our customers convenience before anything else. Customers can access their information in real time, at any given point of the day with regards to their loan statements, balance confirmation, amortization schedule, TDS certificate or payments due.

The role of technology in accelerating innovation and the pace of progress in the financial services industry is unparalleled. To know more about Tata Capital’s digital offerings, reach out to us here.

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