Finance digital transformation. What are the areas in finance that digital transformation helped to better? How did these changes affect us?
Read on to know.
Finance Digital Transformation
Digital transformation has already made its way into the financial services industry. Changing traditional business models and processing. And it is unavoidable.
This is because there are rising customer expectations and increased competition. Then, stricter regulatory requirements are put in place.
As a result, the finance industry needs to adopt a digital transformation. And a lot of them are already on their way.
There are already mobile apps that let customers do bank processes in one go. Such are:
- bills payment
- make deposits
- send money
- unusual activities alert
Additionally, some insurance companies made apps that have:
- fitness guides
- microinsurance policies
- track driver habits
Then, investment firms have what they call a robo-advisor. This is to help their clients make smarter decisions.
All these are backed by AI technologies. And are offering a personalized customer experience.
Challenges for the Finance Team
The finance team has to face a growing number of entities. And it can become harder and complicated without automation.
To most of these firms, this means managing a lot of separate QuickBooks and Excel reports. And most of these have more than 25 tabs of information.
But, this is prone to errors and takes a lot of time to prepare. Even after these, it still can’t give a proper financial view of a company’s business health.
How are the financial teams facing these with the help of digital transformation?
Today, most financial services got rid of the one size fits all approach. Instead, they are now focusing on making their digital transformation tailored.
They make offers that suit each client, family, or organization. And of course, this should be cost-effective.
Financial leaders need to make sure of the company’s financial health. And at the same time meeting the customer’s needs and wants.
How do financial services solve this? By a united system of records. Meaning, collecting automated and real-time data.
By this, it becomes easy for one to look for and have the latest data with only a few taps. Making it possible to get them within minutes and not weeks.
Also, successful companies use a custom financial dashboard. It can highlight KPIs and metrics that the executive team needs the most.
Then, they can see the real-time results of products or campaigns. All without the need to wait for weeks for the data and report.
As a result, the company can save resources and avoid errors. It can also help in their growth and rise in their profit.
AI and Smart Automation
Customer service can be improved by digital transformation. This is because customers can get a fast and efficient answer to their needs.
For example, insurers can process a client’s claim faster. And at the same time, offer a personalized service.
Also, digital transformation means automating, not everything, but what needs to. So, companies take a look at their most time-consuming tasks and automate those.
AI is also very helpful. they simplify processes. Also, each of its steps is accurate and efficient.
For example, they gather invoices faster and see payment disputes earlier.
So, digital transformation is now crucial to help finance industries simplify their work. As well as please their customers.
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