How Accelerating Digital Transformation in the BFSI Sector Leads to Effective Business Outcomes
The BFSI sector is going through rapid digital transformation. One of the major uses of digital banking has been digital payments. According to the Annual report from RBI, the total payments were recorded at 43.71 crores in 2021 across the country. While digital payments have been growing, other digital drives can be attributed to the need for a more value-driven banking experience, such as hyper-personalized user journey, ease of service, and 24/7 availability.
The growing need for digital channels has allowed BFSI players such as banks to no longer worry about focusing their efforts on expanding their brick-and-mortar presence. The current pandemic has added pressure to improve the technical capabilities of BFSI players to facilitate three aspects of their business – customer satisfaction, retention, and acquisition. Some of the biggest technology trends that defined the Indian banking system include:
- The introduction of open banking allows traditional banks to partner with fintech solutions for their services
- Improving security and speed through the use of Blockchain
- Faster digital payments with biometrics in digital channels
- Cost-efficient cloud banking that reduces silos across customer support and finance
- Customer service with AI and ML for more personalized customer services such as approvals for loans and credit cards
This visible shift has allowed banks and financial institutions to add various customer access points.
Although the Government of India is actively pushing the digital transformation, the BFSI industry players are facing several challenges, including increasing cost pressures, quick action, and response teams. These challenges can be linked to the lack of strategy while focusing on digital transformation.
Strategy Before Transformation
Cornerstone Advisors’ 2022 study – What’s Going On in Banking states three-quarters of banks and credit unions have launched a digital transformation initiative, with another 15% planning on developing a digital transformation strategy in 2022.
However, merely adopting cloud models for greater scalability and agility will not yield results or success. These efforts must be centered around improving business and operational efficiency to usher in the customer-centric era of banking. Simply put, a bank’s digital transformation efforts should be focused on resolving core system limitations.
Conneqt Digital’s Approach to Accelerated Digital Transformation
Many BFSI players are trying to jump into the digital transformation bandwagon without a proper plan or strategy. As a result, their efforts to improve business go in vain as productivity is affected, employee retention becomes difficult, and most importantly, complexities arise due to the introduction of new systems and processes. Banks need a digital transformation partner who can add value with their expertise and value offerings to resolve this.
Conneqt Digital in Action
In the past year, Conneqt Digital partnered with a leading bank in India to help realize its strategic business goals. The bank was looking at revamping its digital journey and partnered with Conneqt Digital to build a robust, comprehensive strategy that will help achieve its goals. To that end, Conneqt Digital concentrated on three major service areas — customer service, collection practice, and back office. These service offerings were addressed using a 9-point strategic approach.
- Customer acquisition and experience enhancement with a focus on customer growth
- Marketing and campaign management initiatives such as digital marketing of products and services, automation of marketing campaigns
- Digital processing and automation such as the use of tab banking and web portal for account opening, flow-based lending, and exclusive personal loan product, and the use of NLP-based BOTs
- Open banking by onboarding fintech platforms, API platforms, and neo-banks for MSMEs
- Digital lending with automation of valuation and BIR
- Digital channels that modernize MIB with analytics
- Contact center to improve collection efficiency and establish a comprehensive collection mechanism.
- Analytics for a 360-degree view of customers that leverages data and analytics platforms skills and use cases
- Infrastructure and security with apps that ensure robust security
Conneqt Digital Deployments
Conneqt Digital focused on three major areas to help clients in their digital transformation journey.
For contact center transformation, Conneqt Digital recommended:
- Service to Sales Transformation with Digital Outbound Center
- Digital Collection Contact Center
- Digitally enabled Central Loan processing unit
- ML / NLP / AI-Enabled BOTs
- Channel Deflection across Whatsapp, Chat, Emails
- Full-service CRM Integration with Core Banking & other Banking apps
- Voice Biometrics for Customer Authentication
- Automated Call Quality Audit (Speech Synthesizer)
To improve the customer acquisition process, Conneqt Digital proposed Digital BPaaS Sales Offering with:
- Data Analytics tool for Propensity
- Campaign Management & Channel Orchestration tools
- Integrated CRM
- Lead Nurturing & Lead Scoring Tools
- Deployment of Supersales Agents
- cKYC, eKYC and VideoKYC
- Compliant with RBI and TRAI guidelines
As the lending process required centralization, Conneqt Digital focused on Digital BPaaS for Lending using:
- Digitization of Application Login (local)
- Centralization of sanction & disbursal
- ICR & OCR deployment
- Modernization / replacement of DMS & Workflow
- Modernization / replacement of LOS & LMS
- Deployment of Processing staff
- Underwriting by Bank
- Deployment of Loan servicing staff
- cKYC, eKYC and VideoKYC
- Compliant with RBI guidelines
Lastly, for the collection process, centralized with FOS was implemented with:
- Data Analytics for Propensity
- Deployment/enhancement of Collection management software
- Deployment/enhancement of CRM
- Deployment of ML-enabled DigiCollect
- Deployment of Orchestration engine across channels
- Deployment of Feet on Street
- RBI Compliant Process
Digitizing ConneQT: ConneQted Experience & Efficiency Stack helps customers reshape themselves around the customer journey and improve key business outcomes. The stack consists of Connected Digital CX, D-Box, and Digi Collect. The offerings helped with the following outcomes –
- Seamless execution enabled through PODs
- 360-degree view of IRM with ServiceNow
- Enterprise wise digital automation
- Establishment of digital competency centers
- Customer journey management (CJM) through CX transformation
- Robust data and analytics platform
Why Conneqt Digital?
Conneqt Digital is recognized as of one the leading digital transformation partners by players in the BFSI sector as we bring –
- In-depth understanding of business and industry
- Over two decades of deep banking experience
- Strong technology partnerships and digital competencies
- A best-in-class outside perspective
To know more about our services, visit www.conneqtcorp.com.
