Innovative digital solutions is need of hour for BFSI sector to provide security, expand customer base

Banks and finance companies are integral to the Indian economy. Today, especially, they don a bigger role in funding innovative ideas across industries, and supporting major commercial and economic activities in the country. With the staggering growth of the financial services sector and loftier demands from customers, leaders at finance companies are keen on investing in cutting-edge solutions that offer value and address business requirements. Moreover, the digital India initiative, which is making mighty strides in the country, has given birth to a host of innovative solutions. Given its widespread acceptance and resounding success across the world, digitisation is embraced by the BFSI sector as well. However, there’s still scope for finance enterprises to experience all the advantages of digitisation. Moreover, with the ever-increasing customer needs, finance corporations have to serve their customers quickly otherwise they risk losing them. [caption id=“attachment_2851760” align=“alignleft” width=“380”]  Representation image. Reuters[/caption] As per a study by Ernst and Young, by 2020, the average age of India will be 29 years and this young consumer base is internet savvy and wants real time online information. This is exactly where fintech companies can step in and play a significant role. Digital technology offered by fintech companies can help banks and any other finance company to automate transactions and introduce a whole new level of efficiency, which is currently missing with archaic processes. This includes automation of all aspects of card management such as card issuance, card activation/ deactivation. With automation, banks no longer have to depend on third parties to complete card activation that ultimately leads to a faster and foolproof process. Similarly, microfinance companies can automate the issuance of credit cards for farmers. This is a much-needed breakthrough that can boost efficiency in lending funds to millions of farmers in rural areas. Through digitisation, banks and finance companies can save resource time and costs, and achieve high accuracy by negating several time-consuming manual processes. Additionally, with immediate card activation and prompt servicing, banks can improve the overall customer experience. Moreover, fintech companies are mandated to offer digital solutions that are secure. And today, fintech companies offer advanced security features too to ensure safe transactions. The engine of digitisation powers many more advantages. Finance companies can expand their product portfolio with innovative digital solutions that fintech companies offer. For instance, banks can offer digitised employee benefits that serve employees’ routine needs and also help save tax. This includes e-meal vouchers and paperless claims for medical, fuel, LTA, communications etc. One of the key benefits that banks gain is to expand their customer base by offering new and relevant products and thereby increase customer loyalty. Moreover, since these benefits can be offered via current accounts, banks don’t have to pay interest and can increase revenue. Ultimately, banks can prioritise on sales with automation and outsourcing of back-end work to fintech companies. (The author is CTO & Co-Founder at Zeta- a digital payments platform)