Reinventing Your Financial Services Through Digital Transformation

With e-retail revenues projected to reach $4.48 trillion in 2021, up from $1.86 trillion in 2016, the growth momentum for the e-commerce sector seems unstoppable. The convenient nature of online retail and the cheaper prices resulting from reduced operational costs for e-tailers make e-commerce an attractive proposition for the shoppers. But this also means that more businesses are handling sensitive information like card numbers and addresses to facilitate the delivery of products and services.

By 2040, NASDAQ predicts that over 95% of purchases will be facilitated by e-commerce. This means that every business needs to start implementing a robust financial toolset that facilitates secure trade with customers and B2B partners. To keep pace with this insatiable demand, you will need to invest in cutting-edge technologies that edge out the competition and scale with business growth.

Ganeshan Venkateshwaran, President at Trianz

A proponent of this ideology, Ganeshan Venkateshwaran, President at Trianz, says: “At Trianz, we emphasize on outcome‐focused execution to provide digital transformation results for our clients. Our keen understanding of the kind of products the market is seeking, expertise in developing industry‐compliant solutions and a proven transformation model combine to give us a leading edge.”

 

Digital Transformation in Financial Services

According to the recent World Retail Banking Report, nearly 2/3rds of customers across the globe are already using FinTech services.

Some of the most significant benefits include:

  • Leveraging technologies like Artificial Intelligence and Machine Learning – AI and ML have become buzzwords, but for a good reason. For many financial institutions, it is possible to use AI to predict the possibility of fraudulent activity. This functionality is now available to businesses, providing a safety net against revenues lost through chargeback scams.

    On the consumer side, feature-rich interactive e-commerce experiences can greatly improve the user experience. It is now possible for businesses to save the customer’s shopping cart and email them to offer a convenient follow-up on a site visit that did not result in a sale. Machine Learning can analyze site navigation patterns and offer flash discounts to customers it detects are on the cusp of making a purchase. This acute analysis of buying habits brings a certain psychological approach to the transaction process; massive internet service companies like Netflix have their own dedicated Consumer Insight Divisions to analyze viewer trends and retain viewership month-to-month.
  • Better adherence to compliance regulations – The administration of financial transactions must be watertight to ensure regulatory compliance. Through a carefully planned digital transformation, it is possible to automate most of your financial administration tasks, removing the costly risk of human error. This means you can avoid fines and avoid tarnishing your reputation through solid management of sensitive consumer datasets.
  • Improved organizational agility – Immense quantities of transactional data are being generated daily, and within this data is information that you can extract to gain powerful business insights. With this knowledge, you can better understand your customers’ purchasing habits and augment your website to remove as many hurdles from the buying process as possible. Just like the adage “Prevention is better than the cure,” for a reliable long-term business finance strategy, foresight is better than hindsight.
  • More straightforward purchases improve revenue growth – If a customer has difficulty completing the transaction process, it is highly likely you will lose the sale. Luckily, there is a range of payment providers that offer user-friendly payment gateways for customers.
81% of the consumer base believes that FinTech services are faster (compared to 36% of bankers).

The majority of modern payment gateways are offered as a “hosted” service. This means the service provider is responsible for compliance with regulations like PCI-DSS, which can be beneficial for smaller businesses, which lack the manpower and expertise to self-regulate. For some companies, an “API Hosted Gateway” may be more suitable, thanks to its customization capabilities. The downside here is that payment will be processed through your servers, making you responsible for regulatory compliance and purchasing of additional certifications like SSL.

In addition to the above benefits, you can also capitalize on “public perception.” When it comes to consumer perception, the World Retail Banking report further reveals interesting insights:

– 81% of the consumer base believes that FinTech services are faster (compared to 36% of bankers)

– 80% of consumers feel that FinTechs are providing good experience (compared to 40% of bankers)

 

Modernize Your Financial Services with Trianz

Trianz is a leading IT consulting firm, with decades of expertise in helping businesses drive successful digital transformations. Trianz combines innovative business solutions with advanced technologies to help banking and financial institutions to maximize value from their customer relationships, transform business processes, and rationalize product portfolios. Trianz has proven expertise in core FinTech areas like banking, customer operations, back office management, payments processing, online banking, risk management, compliance, business insights, and technology services. Trianz dedicated development centers, staffed by consultants and architects with financial services experience, deliver a range of technology services spanning cloud, analytics, digital, infrastructure, and security.

Regardless of the current state of your IT infrastructure, Trianz can provide expert planning and development assistance, so you can maximize your business potential.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.