The Finnoviti-Technoviti Conclave 2024, a significant gathering in the entire BFSI sector, brought together industry leaders to discuss the transformative impact of strategic technologies on customer experience and operational efficiency in financial services. The panel discussion titled “The Experience Continuum: Elevating Financial Services through Strategic Technologies” provided a deep dive into how these technologies are reshaping the industry landscape.
Digital Integration and Regulatory Balance
Keshav Rao Evani, President – Digital Banking at Yes Bank, emphasized the inevitability of fintech integrations in modern banking. He noted that while digital transformation opens numerous avenues for innovation, it also brings stringent regulatory requirements. The challenge lies in balancing digital advancements with compliance and security.
“We are trying to balance the structure of digital transformation and product integration with external entities, ensuring all our digital endeavors are secure and compliant,” Keshav explained. This balancing act is crucial to avoid a Robin Hood approach, maintaining a secure and regulated environment for digital banking.
This perspective underscores the complex landscape banks navigate as they innovate. They must ensure that while they embrace new technologies and platforms, they also adhere to regulatory standards designed to protect consumers and the financial system. Keshav’s insights reflect the ongoing tension between the drive for innovation and the necessity for regulatory compliance, a balancing act that is essential for sustainable growth in the fintech sector.
The Customer-Centric Shift
Moderator Sanjay Kumar Gupta, Partner – Consulting at Deloitte India, turned the spotlight to Sumoth C, Digital Banking Head a Federal Bank, who has witnessed the bank’s evolution from a traditional branch-based model to a fully digital entity. Sumoth shared insights on the significant shifts in customer expectations.
“Customers now expect banking services to be as seamless as ordering from Swiggy or Zomato,” he remarked. This shift reflects a broader trend where customers demand the same ease of use from banking apps as they do from consumer tech giants like Apple, which do not require manuals for their products.
Sumoth highlighted the importance of designing products that are intuitive and user-friendly, eliminating the need for customer education. Furthermore, he noted that customers now expect banking services to be available where they are, whether on WhatsApp, Facebook, or other digital platforms. This shift underscores the need for banks to integrate services seamlessly into the digital lives of their customers, all while adhering to regulatory and compliance standards.
The insights from Federal Bank’s transformation illustrate a critical point: the future of banking lies in meeting customers where they are. By integrating services into everyday digital platforms, banks can offer a more convenient and responsive experience, thus driving customer satisfaction and loyalty.
Innovative Product Communication
Priyanka Sareen, National Product & Communication Manager at AU Small Finance Bank, provided a fascinating look into how banks can effectively communicate their digital offerings to customers. “The first customer we need to engage is our Sales Team. If they understand and advocate our digital products, customers will follow,” Priyanka explained. AU Bank’s pioneering patents, such as offering insurance via ATMs and enabling insurance purchases on WhatsApp in under a minute, illustrate their innovative approach. These patents not only enhance customer convenience but also reflect the bank’s strategy to merge banking and insurance seamlessly.
Priyanka emphasized the importance of personalized, hyper-interactive messaging to build customer trust and engagement. “We ensure our communications resonate with customers by making them feel secure and understood,” she said, highlighting the bank’s approach to demystifying digital processes for customers, making technology accessible and reassuring.
This strategy underscores the importance of internal buy-in for the success of digital initiatives. By ensuring that their sales teams are well-informed and enthusiastic about new products, banks can create a ripple effect that extends to the customer base, fostering trust and adoption of new digital services.
Expanding Customer Outreach through Technology
Aveek Chaudhuri, Head – Digital Strategy, Products & Partnership Ecosystem at Unity Bank discussed the bank’s strategy to leverage digital technologies and fintech partnerships to expand their customer base. “We are one of the youngest banks in India, and our strategy includes a comprehensive digital presence across mobile banking, WhatsApp banking, and internet banking,” Aveek said. Unity Bank’s approach to fintech partnerships is holistic, ensuring that every customer interaction across channels is seamless and informative.
Aveek also hinted at an innovative product set to revolutionize the market, combining savings and lending in a unique offering. This product aims to simplify customer experiences, making banking as intuitive as possible. “We are working on something very unique, which will be a first in India,” he revealed, underscoring Unity Bank’s commitment to innovation and customer-centric solutions.
Unity Bank’s approach highlights the potential of fintech partnerships in driving innovation and expanding reach. By collaborating with fintech firms, banks can offer a broader range of services and enhance their technological capabilities, ultimately improving customer experience and operational efficiency.
Technology as a Backbone for Growth
Pradeep Srivastava, CTO at Bank of Maharashtra, shared how the bank’s adoption of advanced technologies has propelled its growth, making it one of the fastest-growing PSU banks in India. The bank’s success is built on a robust technological backbone, incorporating AI, machine learning, and robotic process automation (RPA). “RPA is critical for our digital onboarding and lending processes, enhancing efficiency and reducing errors,” Pradeep stated. The bank’s strategic focus on technology has not only improved operational efficiency but also positioned it alongside top-performing banks like SBI and HDFC.
The integration of these technologies has enabled the Bank of Maharashtra to streamline operations, reduce costs, and improve customer service. By leveraging AI and RPA, the bank can automate routine tasks, freeing up staff to focus on more complex and value-added activities. This strategic use of technology is a key factor in the bank’s impressive growth and performance.
Navigating Risks in Emerging Technologies
Sunder Krishnan, Chief Risk Officer at LIC, highlighted the challenges posed by emerging technologies, particularly in cybersecurity and privacy. He stressed the importance of designing robust architectures that incorporate controls to mitigate risks from cyber-attacks and data breaches. “You need to think through privacy and consent management, ensuring customer data protection and compliance with regulations,” Sunder advised. He also pointed out the need to simplify customer interactions, making digital processes user-friendly while maintaining security.
Sunder’s insights emphasize the dual challenge of leveraging new technologies while ensuring robust security and privacy measures. As financial institutions adopt AI and other advanced technologies, they must also invest in cybersecurity infrastructure to protect sensitive data and maintain customer trust.
Enhancing Customer Experience in Insurance
Dr. Ravisheshadri, insurance sector expert and Ankit Goenka, Head Customer Experience at Bajaj Allianz General Insurance, provided valuable insights into the evolving landscape of insurance technology. He highlighted the shift in customer expectations post-covid, emphasizing that technology is crucial for increasing insurance penetration in India. He stressed the need for seamless claims processing, where technology simplifies the customer experience at the moment of truth-claim settlement. “Tech can reach everyone, making insurance accessible, but the focus should be on making claims processing smooth and hassle-free,” Ravisheshadri said.
Ankit Goenka shared Bajaj Allianz’s innovative approach, including the development of an AI-driven conversational bot for farmers to report crop losses. This initiative saw a 94% adoption rate within 45 days, demonstrating the effectiveness of combining technology with human support. “Our strategy is to automate claims processing while retaining human intervention for complex cases,” Ankit explained, highlighting the balance between automation and personalized service.
These examples illustrate how technology can transform the insurance industry by making processes more efficient and customer friendly. By leveraging AI and automation, insurers can streamline claims processing and enhance customer satisfaction, while still providing personalized support when needed.
The Role of Open Source in Innovation
Peter Lees, Head of Solution Architecture at SUSE APAC, emphasized the critical role of open sources in driving innovation across the financial sector. “All significant IT innovations in the last decade have happened in the open-source space,” he stated. He highlighted the collaborative nature of open-source development, where industry competitors and partners work together to solve problems. This collaborative spirit accelerates technological advancements, making open-source indispensable for banks and insurers looking to innovate and streamline operations.
The open-source model fosters a collaborative environment where financial institutions can share knowledge and resources, accelerating innovation and improving the quality of technological solutions. By participating in open-source projects, banks and insurers can stay at the forefront of technological advancements and implement cutting-edge solutions to enhance their services.
Conclusion
The panel highlighted how strategic technologies are transforming customer experiences and operational efficiency in banking and insurance. With advancements in AI, open-source tech, and customer-centric strategies, the industry is evolving rapidly, making financial services more accessible and efficient. The insights underscore the commitment to leveraging innovation to meet customer needs and drive growth. As technology progresses, it promises to bring significant changes to the financial sector, enhancing customer satisfaction and fostering sustainable growth. Embracing innovation while prioritizing customer experience will enable financial institutions to navigate digital transformation and emerge stronger in the future.
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