The phrase “Digital Transformation” has been recently used quite often when referring to the adoption of ICT solutions for the purpose of improving the services offered by an organization, firm, or institution. Digital Transformation is more than automation; it is an overhaul of processes, operations, and the relationships with customers with the objective of improving customer experience.
Since the pandemic, Digital Transformation has become an urgent need for everyone. Social distancing mandated remote working making it the norm around the world, and this required all existing systems to take into consideration several new requirements to enhance customer experience and improve service offerings.
In fintech, digital transformation has become more of a business strategy rather than a technology strategy as it involves several factors that allow financial institutions to understand what their customers want. Through data analysis, a key pillar of digital transformation, financial institutions can develop better financial services models to meet more accurately their clients’ needs and even exceed their expectations. This of course is a sure path for better customer loyalty and engagement.
Data analytics in fintech is essential in any digital transformation strategy. Data generated with every digital transaction is analyzed through data analytics engines in order to obtain more accurate data insights, better understanding of the clients’ needs, and more intelligent understanding of the data for better decision making and more customized client offerings. Services are no longer fixed; they are tailored to the needs of every customer, and that could not happen without proper digital transformation.
The power of digital transformation lies in the improved levels of services to the clients. Artificial Intelligence such as chatbots or AI-Tellers is a good example where a financial service organization can improve the wait time of a client and lead them more efficiently to the services they are seeking.
Blockchain, mobile banking, and automated wealth managers are good examples of digital transformation trends in fintech. The adoption of blockchain in fintech has increased transparency and has improved efficiency, traceability, and security! With mobile banking, clients can inquire about their accounts, transfer funds, apply for loans, and more.
The digital transformation era in fintech is still in its infancy stage. We expect artificial intelligence, deep learning, and machine learning to see monumental improvement in the next decade, something that will change how we think and deal with money and finances. We will definitely see major changes in the core concepts of the financial industry; cryptocurrencies are already a clear example.