The covid 19 has undoubtedly created great opportunities for financial organizations like Banks, capital markets other financial services to improve their efficiency and expand their services using various digital technologies causing huge benefits. These benefits include effective customer care strategies which include consumers want ease of access, ease of payment at speed. The emphases is on growing the business, improving the customer experience, cut down on cost and ensure profitability through technology.
Financial organizations are also focused on how to encourage their customers to adopt digital channels tools, such as Internet banking, Mobile app and mobile wallet, as an alternative to traditional methods, such as ATM cards etc.
The digital revolution has the potential to change traditional ways of conducting business and it becomes equally important for financial organizations to invest in technologies just like any traditional firms. Various research indicated that during these dynamic times, plans to increase spending on digital transformation tracks closely with concerns about economic conditions disrupting the business.
Investment in Technology and Automation to Help in Achieving New Post Covid-19 Goals
CIOs who are driving financial services digital business strategy and innovation must align with business leader priorities to ensure a coordinated COVID-19 response and recovery, says Gartner.
Gartner 2020 Financial Services COVID-19 Pulse Survey asked financial services business leaders and CIOs what they considered to be strengths and weaknesses as they responded to the crisis. Over half of business leaders indicated that technology infrastructure was a weakness, compared with just 20% of financial services CIOs. 67% of financial service CIOs surveyed plan to increase spending on infrastructure technologies such as APIs, microservices and cloud in the coming year, and over half plan to invest in automation that reduces the need for high-touch processes and contributes to cost optimization.
How Financial CIO’s see Investment in Technology as a way to Navigate Corona Virus Recovery During the Unlocking phase.
Investing in mobile banking applications and online sales, that encourage adoption of digital features to conduct business smoothly even in a situation like pandemic to keep business continuity at flow is something financial CIO’s have stressed on.
Gururaj Rao, VP & CIO of Mahindra Financial Services says “Investments are powerful tool to not only handling the current challenges of cost efficiencies, remote working & collaboration, and information security, but also preparing for a new future where the customer segments and behaviours, partner ecosystems and the competition landscape could be very different from the present”.
These investments are a powerful tool to not only IT investments requires close alignment with the strategy planning, measurement of benefits and success, and determination of risk posture. According to him the current phase of digital technology implementation across financial organizations, suggest that IT investments may move toward cloud models, information management and security solutions.
Shweta Srivastava, CIO, Paul Merchants echoes that “financial services industry has seen one of the greatest revolution in past few months. Contactless, anytime and anywhere digital payments have become the new normal”.
Many first-time users have started using digital payments during this lockdown as the entire paradigm has shifted from offline to online.
Business leaders are formulating strategies which are entirely Customer centric and the focus is on designing products and services around the needs of the customer keeping in mind the unprecedented times like this and the New Normal. The pandemic as taught us too many lessons and has given moment of truth which can only be addressed through technology adoption.
She further elaborates that customers don’t consume product, they consume experience and optimizing the delivery of that experience is required to be the key focus area. The greatest breakthrough is coming in the form of Digital Payments, Digital Lending Platforms, Customer’s financial Data consolidation platforms like Account Aggregation which will pave the way for digital future in the financial domain. Some of the latest technologies being leveraged extensively are AI/ML, Analytics, RPA, Chatbots, Blockchain etc.
Sudhir Khanvinde, Executive Director, IPA mentioned that as we will learn to live with Corona and talk about the new normal, we must believe “technology is the enabler of this new normal”.
Technology has helped us move a lot of activities online and remain connected during these times of social distancing. As far as investment in technology is concerned, it was important before Corona, during Corona and will be important after Corona. We are revisiting our earlier assumptions and projections now and re-evaluating with respect to the changed circumstance. Investment in technology will certainly help us reap benefits, both tangible and intangible in the long run.
Gartner recommends CIOs create a priority map that draws a clear line between business and IT goals and identifies how such technologies will help achieve each goal.
In the long-term, financial services CIOs can proactively prevent future gaps by engaging business partners in prioritization sessions early and often and by clearly articulating which investments will make them more resilient as an organization.
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