In practically every business, digital change has become a disruptor, and fintech is no exception. Digital technology have improved the sector's customer-centricity and technological relevance. Financial institutions can efficiently deliver the experiences their stakeholders and end-users anticipate by offering services digitally. Employee satisfaction, customer engagement, and business innovation are all expected to improve. Fintechs can also function more quickly and efficiently to get a competitive advantage in the market. In this post, we'll look at how digital transformation is speeding up changes in the fintech industry and redefining consumer experience with its numerous advantages. So, let's get this party started!
Financial services digital transformation plan
Fintech's Rapid Growth is Fueled by Digital Transformation
While we Although it is well known that the financial services business has a conventional mindset and takes slow to adapt to change, the epidemic has cast a new light on the situation. It has hastened tangible change by adopting quick physical and digital transformation, which demands the fintech industry to rise to the task of providing powerful computing systems to enterprises. Changes can also be linked to a quick shift in consumer behaviour and the emergence of new patterns driven by a clear desire for cashless and contactless transactions.
The rapid acceptance of finance digital transformation is illustrated by the statistics below.
According to Statista, by the end of 2022, 65.3 percent of the population in the United States will be utilising digital banking, up from 61 percent in 2018.
Only 14 percent, according to Forbes.
How is Fintech Digital Transformation Helping SMEs Become More Productive?
You must employ digital finance projects to maintain your finance firm competitive in the industry and meet consumer demands if you want to keep up with today's innovation. With that in mind, consider the following important advantages of digital transformation in financial services:
Fintech's technological effect
Greater lending options
Traditional lending methods are ineffective in the existing system because they are not intended to scale and designed to measure, and hence appear to impose a barrier to SMEs earning money. Because most of their operations are neither automated or paperless, legacy systems are more expensive and have less flexibility. A cloud-based lending strategy can help in this situation. Createing an application programming interface (API) that will link effortlessly with asset systems and give a fantastic and long-lasting digital model that can power a well-designed lending solution
Taking advantage of digital financial technology
With the rapid adoption of digital platforms during the epidemic, demand for digital payment platforms, digital wallets, and credit cards has increased. Furthermore, SMEs and entrepreneurs from all over the world have begun to take advantage of the digital earnings and loans made possible by simple, fast, and secure fintech solutions backed by solid infrastructural processes. The Fintech industry is prepared to take advantage of digital transformation, with increased consumer awareness and SMEs warming to the concept of employing digital finance solutions to drive their financial operations.
Data processing for operational effectiveness
Financial counsellors can now quickly access consumer data and obtain clearance using digital lending platforms that include novel features such as video-based, social security-based, and personal identification verification. Outsourcing Data Analytics services can aid in improving customer portfolio knowledge and credit processing. Another valuable area where data may be used is to detect fraud, which involves recording consumer behaviour and analysing suspected fraud.
Complications are simplified
In today's competitive financial environment, making online operations highly safe, simple, and successful is critical. This is where financial services digital transformation comes into play. Advanced digital solutions not only make the financial sector's intricacies easier to understand, but they also make operations more user-friendly. For example, A feature-rich fintech application can fulfil a variety of functions while automating operations and improving the client experience. As a result, financial sector digital transformation is a prerequisite.
Financial Services Digital Transformation Trends
Among all the industries touched by the pandemic and transformed by the digital transformation wave, the finance sector underwent the most significant changes. The road to fintech digital transformation has been a new trip for this sector, as it is one of the industries that is based on human labour and one-on-one contact. In the fintech industry, digital transformation has evolved into a commercial necessity in order to improve customer experience through the development of new goods and services. Because of the widespread use of smartphones in our daily lives, we are increasingly turning to digital banking for common financial services such as electronic bill payments, shared payments, and fast transfers. According to Deloitte, 72 percent of customers already use their mobile phones to reach their primary bank.
Big data as a catalyst for innovation
Big data analytics has already proven its worth in the banking sector. Financial institutions and banks are now devising new marketing strategies and utilising big data to provide more personalised services to their clients. One of the most important ways the fintech sector will be able to take advantage of the massive amounts of consumer data is to utilise it to train machine learning algorithms to automate procedures, saving personnel hours of work.
Mobile payment services
There was a time when mobile wallets were a completely foreign concept to most people. The methods for saving money and paying payments have evolved over time. The use of mobile wallets has become the norm. Whether it's merchants, shopping malls, or other sellers, they prefer mobile payments to cash and cheques. All thanks to the convenience, security, and accessibility provided by mobile wallets, which have paved the way for digital financial progress over the years.
Using RPA to automate processes
Financial organisations are under tremendous pressure to reduce expenses, increase ROI, and increase productivity. RPA has already shown to be their saviour, boosting efficiency and productivity across the board. RPA is beneficial. RPA aids corporate efficiency by automating repetitive and manual office processes often performed by bank employees. It also aids in the reduction of common inefficiencies and errors. Around 80% of financial leaders have implemented or plan to implement RPA, according to Gartner. As a result, RPA is helping to introduce digitization to the finance sector.
Fintech's Digital Transformation Challenges
The first problem that the fintech sector faces is presenting investors and other stakeholders with a clear picture of their proposal, particularly if their offering is not currently available on the market and is not permitted by a specific number of clients. These difficulties make it difficult for commercial investors to raise financing. These people will wish to see things clearly. When interacting with traditional financial services providers, fintechs have a significant challenge in creating connections and trust. They must dispel the idea that their innovative technology necessitates data security and management. To scale worldwide with few collisions, fintechs require a strong supportive control structure that aligns borders. Another significant digital transformation difficulty is international action; 95 percent of Fintech startups that attempted to grow up failed. Fintechs are struggling to operate beyond regional and national regulatory boundaries and reach customers at critical periods as a result of this.
How did Syoft assist Asian Bank in its digital transformation?
The Asian Bank app needed a way to provide core complex wire transactions with a simple interface. The app also required functionality for wallet recharging and cryptocurrency payments such as Bitcoin and Ethereum. The main goal of Syoft was to expand the Asian Bank's app horizon for cryptocurrency use. We began by creating a central ledger to record transactions, and then added a system that recognised both FIAT and crypto user funds. Syoft provided Asian Bank with a core banking solution by conquering the most difficult barrier of integrating all third-party systems into an existing app. The end result? The app has received over 250k downloads and has processed over 50k cryptocurrency transactions.
We hope that this essay has helped you better grasp the various facets of fintech's digital transformation projects. If a company wants to succeed, it must make digitalization a strategic priority. Implementing digital transformation efforts is also a wise decision if ease, scalability, and security are your main concerns.Contact our specialists if you wish to begin your digital transformation journey or if you need assistance along the road. They will provide excellent digital transformation services and will accompany you throughout your digital transformation journey. Our professionals will provide excellent digital transformation services and will walk you through the full digital transformation process.