Advancing the BFSI Sector through Technology Automation
The business environment from all around the globe is transforming at an unprecedented pace. Technological advancements are certainly the primary driver of this rapid transformation. The banking, financial services, and insurance sector, commonly known as the BFSI sector, has been at the forefront of using this transformation to its advantage.
The BFSI sector now enjoys seamless access to advanced technologies such as machine learning (ML), artificial intelligence (AI), and robotic process automation (RPA). As a result, it helps businesses drive better results with minimal effort and costs. So, continue reading to learn more about the different ways technology automation helps enhance the BFSI sector.
But What Exactly is Technology Automation?
Technology automation is the simple use of advanced technologies to automate business operations. Businesses of all scales are now using RPA, AI, ML, BPM, and advanced analytics to transform their business. These technologies have the potential to create an end-to-end business process that learns, thinks, and adapts automatically.
These advanced technologies help businesses hasten their digital transformation and automate repetitive tasks. As a result, they enjoy simplified business processes with enhanced efficiency and minimal resources.
Organizations in the BFSI sector leverage this tactic to drive and sustain growth while enhancing profitability.
A step ahead of technology automation is hyperautomation, an approach used by organizations to automate their businesses and IT processes as far as they can. It uses a strategic combination of several technologies and tools like AI and Machine Learning. What sets hyperautomation apart from technology automation is that it is more sophisticated and smart.
To learn more about hyperautomation, read our blog.
Now, back to technology automation:
Why is the BFSI Sector Using Technology Automation?
Every business decision is to promote the business’ interest and overall profitability. Thus, the sole reason for the BFSI sector using technology is because it aids in their business interest. Nonetheless, there are different ways technology automation can benefit a business, and some of those ways include:
● Better Efficiency: The most common reason behind the BFSI sector choosing technology automation is better efficiency. Advanced
technologies with the potential to automate business processes, especially related to the back-office, and boost efficiency. As businesses get an opportunity to streamline business processes based on their needs, operational efficiency touches the roof.
● Enhanced Customer Service: Customer service is one of the most crucial factors for businesses in the BFSI sector. Consequently, these businesses need to pour extensive efforts into meeting customer expectations. Technology automation eliminates all hassle from these processes with seamless access to data. So resolving customer requests is completed in no time, further contributing to a better customer experience.
● Effective Use of Human Capital: The BFSI sector has to deal with many repetitive tasks. Consequently, business employees often remain preoccupied with these tasks preventing them from focusing on other value-driven tasks. However, technology automation can help automate all these tasks allowing employees to focus on other value-driven tasks.
● Cost-Efficiency: Every business strives to enhance its cost efficiency with different tools and tactics. Technology automation is very effective when it comes to improving cost-efficiency. Since most of the repetitive tasks are automated, businesses no longer hire someone for these tasks helping them bring down costs.
● Effective Utilization of Data: Businesses in the BFSI sector now have seamless access to tons of data. With technology automation, these businesses can better use these data and drive better and more informed decision-making. As a result, this helps business organizations drive better growth with a transparent overview of the business environment.
How is Technology Automation Transforming The BFSI sector?
Technology automation positively impacts every industry, and the BFSI sector is no exception. So let’s check out how technology automation is transforming this industry one at a time.
● The Banking Sector
Banks have to deal with a ton of repetitive tasks every day. Using technology helps them automate these processes. As a result, the employees in the banks are now able to focus on other value-driven tasks. For instance, bank employees can now focus on developing better customer relationships rather than filling out KYC forms every day.
Besides that, things also get more convenient for customers as they can remotely run most of their banking errands. Whether one has to open a new banking account or update their banking details, they can do it from remote locations.
Finally, banking employees are now free from the headache of maintaining and updating their general ledger. With technology automation, banks can collect, validate and update significant amounts of information from different sources.
● The Finance Sector
The next beneficiary of technology automation is the finance sector. Businesses in this sector face many challenges with their application verification process. However, technology automation plays a crucial role in simplifying this entire ordeal. Documents can now be evaluated and validated in just a matter of seconds.
Besides that, the real-time monitoring capabilities of technology automation allow the financial sector to eliminate fraudulent activities. These technology solutions help analyze trends and immediately report if something looks wrong or unusual.
Most importantly, financial audits have become a left-hand task for businesses in the finance sector. As a result, these businesses no longer need to worry about human errors jeopardizing their efforts or financial audits. It certainly takes off a heavy load from business organizations in the financial sector.
● The Insurance Sector
The insurance sector has struggled with credit assessments for a long time. But things are now much more efficient and accurate with technology automation. These technology solutions can seamlessly screen several borrowers and assign them a risk score accordingly. As a result, insurance providers can make more informed decisions and mitigate the impact of risk factors.
Technology automation also provides insurance businesses with valuable insights based on customer information. These solutions will track the customer’s movement through the buying journey and offer recommendations accordingly. So insurance providers can now deliver a better customer experience while facilitating better funds management.
One of the primary reasons the insurance sector embraces technology automation is because it hastens its claim processing. Since all the necessary data is readily available through these technologies, processing and settling claims becomes easier. Besides, this eliminates all manual errors from the processes.
Technology automation is the future of almost every industry in the current business environment. However, its impact on the BFSI sector is truly note-worthy. The transformation brought through these technologies is boat fast and highly effective.
As a result, businesses in the BFSI sector now enjoy better efficiency, productivity, and unmatched quality of services. Therefore, it would be safe to say that technology automation truly helped the BFSI sector advance at an unprecedented pace.
If you’re looking forward to incorporating technology automation or Hyperautomation into your BFSI business, contact Tech Tammina. We have all the right solutions for businesses like yours!