Covid-19 Series:The New Normal - Financial Services 2020 & Beyond
by Arttha Fintech Arttha Digital Banking Solution ProvidersAuthor: Manish Sharma, Chief Executive Officer, PureSoftware.
The impact of the Covid-19 pandemic is being felt by
countries and businesses all around the world and has already delivered the
fastest, deepest economic shock in history. Countries are seeing massive
unemployment spikes and numerous businesses are faced with a dramatic loss of
revenue and struggling to maintain their operations. The major challenge for
the entire global economy is to sustain Business Continuity amidst these
lockdown and social distancing challenges.
The coronavirus pandemic has forced companies to rethink the
way they work, tighten up business travel policies, undertake cost optimization
on priority, and relook at growth strategies. The online channel which was once
a “good to have” one for the brick-and-mortar companies has become one of the
mandatory channels for the present and foreseeable future. Some companies have
already started thinking about leveraging ‘Work from home’ permanently as part
of their company policy. Online collaboration Apps like Zoom, Microsoft Teams
have seen soaring downloads and an exponential increase in the customer base.A
We are seeing this lifestyle change play out in real-time as
the contagion accelerates globally; and technology has become indispensable
when it comes to accepting and adapting to this new normal.
Banks have transitioned to remote sales and service teams
and launched digital outreach to customers to make flexible payment
arrangements for loans and mortgages”
Source McKinsey Digital
(https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/the-covid-19-recovery-will-be-digital-a-plan-for-the-first-90-days)
The current situation has acted as a wake-up call for both
governments and organizations especially financial institutions. Till recently,
for Banks, talking about digital was merely a way of showing customers that
they were keeping up with the changing times. But in most cases, this referred
to only a superficial digital layer that was customer-facing. COVID-19 has
disrupted banks’ traditional channels like nothing we have seen before, forcing
branch closures, restructuring call centers to work remotely and testing
digital delivery channels. Banks may appear to have the best service outward-looking,
but if not supported internally by robust technological systems then a a situation like this has simply served as a rude shock and most Banks have
fallen sorely short of customer expectations.
COVID-19 is just a catalyst that has helped push customers
along the technology adoption curve. The important fact however is that once
onboarded, users tend to stick with the new habit if it’s more convenient. This
shift towards digital products and services, accelerated by the virus, will,
therefore, have a long-lasting effect on the years to come. Digital-only is now
the new norm and is here to stay. Even after the epidemic, how consumers relate
to their bank and do banking will be forever changed.
Young adults are currently the biggest adopters of digital banking with 25% of those between the ages of 18 and 24 having an online-only account.
The other segments have used online merely to support transactions when going
to a branch has not been possible. This is about to change because faced with
fear and situations beyond their control, people are adopting technology at a
pace as never witnessed before.
By putting the customer at the core of their business
strategy, banks can still find a way to add some stability to their businesses.
Financial institutions that lead to customer experience have a higher
recommendation rate, a higher share of customer mind space, and a greater
likelihood that these customers stick to them. It is therefore critical to
start any digital transformation journey with the customer at its center and as
an endeavor to digitize the ideal customer experience. However, more often
than not, the banks start with their existing process and existing technology
stack, and then try to put the client experience on top of that. This is what
has led to superficial digital layers that come crashing down at the first sign
of crisis.
Consumers’ growing desire for digital banking services will
force many traditional financial institutions to fast-track digital
transformation efforts, as a result, many of them will have no choice but to
turn to fintech for assistance in drastically reducing time to market for
digital banking solutions to the marketplace. As more customers stay and work
from home, online investments will also pick up, and Robo-advisors, online
trading, and InsurTech, etc will be preferred for wealth management. MFIs and
NBFCs which have traditionally been driven by physical methods of cash
collection, face to face verification, and onboarding of new customers will now
have to seek new ways to embrace digital.
With the foray of new technologies and financial tech
institutions slicing into the banking pie and more importantly, with the
uncertainty of global events, the banking industry needs to quickly adapt and
look towards elevating the customer experience and also finding a way to
engaging customers remotely. This will lead to rising demand for fintech
enablers around AI, IoT, and software solutions. One such platform that can
help financial institutions and Banks achieve rapid results and quickly go to the market is Arttha from PureSoftware.
ARTTHA, the unified fintech platform from PureSoftware is a
‘Digital in a Box’ solution that allows financial institutions to leverage the
platform in a SaaS as well as an on-premise model for enterprise-scale
deployments. ARTTHA'S lightweight core-banking along with payments help
fintechs and legacy banks transform digitally within a minimal lead time and
with minimum disruption to their existing systems and processes.
Arttha is built leveraging a microservices architecture with
unique microservices for each functional module. Every module can hence run independently
of each other and the functionality can be exposed to third-party partners
leveraging the 300+ APIs in the platform. Click here to know more about Arttha.
About the Author
Manish is an accomplished leader in the Information
Technology Industry with more than two decades of experience across the globe,
especially emerging and frontier markets. He Co-Founded the APJ business at
PureSoftware and is leading a passionate team focused on Digital Platforms in
Clinical Trials, fintech, IoT, and IT Services. Based in Singapore, Manish is
also an Advisor to multiple technology start-ups and is passionate about
fintech, insure-Tech, and Digital Platforms.
Sponsor Ads
Created on Jun 10th 2020 06:43. Viewed 484 times.