Digitalization has stepped into every area, and finance is no exception. The introduction of digital technologies has made the finance sector more customer-centric and has made daily procedures more convenient.
By offering their services digitally, the financial companies have enabled themselves to effectively deliver services and meet stakeholders' and users' expectations. The digital transformations have also escalated the level of customer satisfaction and engagement, employee satisfaction, and business innovation. Not only this, but the digital changes have also made finance companies work faster and more efficiently, enabling them to compete in the market better.
Although the fintech industry demands a lot of time and effort to adapt to any change, the pandemic has rapidly changed the picture. It has made the sector rapidly adapt itself to the physical and digital transformations. A drastic change has now been witnessed in the behaviour of the customers who are now highly preferring digital transactions over cash transactions.
The idea of cashless and contactless transactions has triggered the need for digital transactions amongst people.
Impact of fintech on the world
The impact of fintech digital transformations can be seen in almost every industry. For instance, SMEs have become more efficient as a result of digitalization. To keep their firm competitive in the industry and ensure convenience for customers, enterprises are implementing digital finance initiatives. The current, digitalized system has provided greater lending flexibility, simplifying complexities, ensuring operational efficiency, etc.
Digital transformation trends in financial services would lead to:
Growing enterprise agility
After many experiences gained from the previous financial crisis, an enterprise's ability to expand its agility has become an essential trend in the industry for which organizations need quick, reliable access to increasing amounts of information without indulging in hectic manual processes.
Increased use of mobile banking
Many people are commonly using mobile banking. It will become more prevalent and more convenient to use in the coming times. The increasing utilization of mobile phones has shifted people's choices to digital banking services like instant transfers, electronic bill payments, shared payments, etc.
Increased innovation
Banks and financial institutions are now developing new ways to market their services innovatively and offer more personalized services to their customers. In the coming times, when the technology will take over majorly, the customization of services will increase, and services provided will become more customer-centric.
Mobile pay utilities
There was a time when mobile wallets were not known to anyone. With the adoption of digitalization, making payments is also changing. Mobile wallets have become very common nowadays. Almost all the sectors are now using mobile payments over traditional methods of giving and accepting payments. Mobile wallets' comfort, security, and ease of payments have made people prefer mobile payments over conventional methods. In the coming times, digital payments are expected to completely take over the cash transactions, which will open the doors of many opportunities in all sectors.
(Shams Tabrej is financial expert and Founder, Ezeepay-Service Provider For Aadhaar Payments And Money Transfer Services)
