How Will Technology Transform BFSI Sector?

The world has entered into an era of ‘Digital Darwinism’, a period where technology and society are transforming at a pace that is significantly faster than adaptability level of many organisations. The BFSI sector is one such industry, where technology is reinventing the level of services that are offered to the customers. The rise of five digital forces namely Social, Mobile, Analytics, Cloud and Internet of Things (IoT) is creating greater impact in this transition. A major part of this transformation in India is also accredited to Digital India, an initiative launched by Prime Minister Narendra Modi-led government. BFSI sector in India, in the recent times, have come across several innovations such as Unified Payments Interface (UPI), Bharat Interface for Money App and several popular variants. Following are some technology trends that will transform BFSI sector: 1. Open banking Space Open banking space is a connected ecosystem designed for financial and non-financial services that is associated with multiple service providers. It is said to be the future of banking industry in India. Introduction of National Payments Corporation of India’s flagship initiative UPI has opened new vistas for open banking space in the country. UPI is expected to enable the payments service providers to create exclusive and unmatched offerings for the consumers. 2. Cloud computing for banking Cloud computing is gaining a lot of popularity within BFSI sector in India. Several tech-driven leading banking institutions have already made striking developments pertaining to cloud adoption. 3. Blockchain and the race to production In a bid to be more efficient and agile and meet the rising expectations of the customers, BFSI sector in India is looking forward to adopting blockchain, a technology that helps in reducing documentation and increase operational efficiency. A global leader in technology services and consulting Infosys has formed “India Trade Connect” -a blockchain based platform formed in partnership with seven banks. The implementation of blockchain has even helped in the doubling the banking partners from seven to fourteen. 4. Artificial Intelligence For boosting the level of workforce efficient and omitting the risk of discrepancies, BFSI institutions are now showing their inclinations towards Artificial Intelligence. Several banks such as HDFC Bank, State Bank of India, ICICI Bank etc are using Artificial Intelligence for their front office services by introducing chatbots.