Learn about the challenges and how to overcome those in order to empower the Banking Financial Industry with Digital Transformation. To give an enhanced secure and easy way of transactions to the user.

1. Accelerating Digital Transformation in
the BFSI Sector
Almost every business, including banking and financial services, has seen a considerable
digital revolution in recent years. The banking and financial services industry has
experienced huge investments in digitization as businesses have recognized the power of
this wave and how it may carry them to profitable shores. The current focus is mostly on
client retention, which requires businesses to concentrate their efforts on online and mobile
banking channels.
Due to COVID-19, there have been gradual changes in the BFSI (Banking, Financial Services,
and Insurance) sector’s digital transformation methods. As it drove users to switch from
ATMs and physical branches to mobile banking, it also generated opportunities and brought
about a revolution in the sector. Consumers engage with their banks, and according to
a Boston Consulting Group (BCG) survey, 24% of customers expect to use branches less or
quit going altogether.
Let’s talk about the challenges affecting the BFSI sector in this regard and examine how
digital transformation, which includes intelligent automation, is resolving these problems.

2. Digital Transformation Challenges in
Financial Sector
Digital transformation entails several dangers, but is it worth the risk? Let’s have a look at
the many difficulties that might constitute a major bottleneck for BFSI businesses.
 Dispersed knowledge: It is critical to have centralized information, which many FIs lack in
order to have a solid systemized platform for gathering data and tracking performance.
Having a good platform that provides employees with access to information when they need
it, as having knowledge when needed will guarantee employees operate autonomously
without interfering with the organization’s job.
 Bank’s collaboration with IT firms: It is vital for banks to collaborate with IT firms rather
than view them as rivals since hiring services is less expensive and more convenient than
building your own IT staff and working with them. Banks may get an advantage over their
competitors by engaging in the services of an IT business and having the essential assistance
available anytime it is needed.
 Resistance to change: It is difficult to persuade employees to modify their daily routines
since they have gotten accustomed to them over time. However, you might be able to get
over their resistance to change by attending to their financial worries, preserving their
independence at work, and other issues. To safeguard the banks’ or financial institutions’
workflow, the entire change must be carried out methodically.
 Maintaining security: Assuring the security of their consumers’ data is one of the trickiest
hurdles in the banking sector’s digital transition. The First American Financial Corp Data
Breach in May 2019 exposed 885 million credit card applications. Therefore, installing a
firewall alone is no longer sufficient to maintain data security. But would it be able to

3. maintain the safety and security of every user’s account when millions of users rely on
digital tools for daily cash flow?
Intelligent Automation in BFSI For
Relaxed Workflow
With conventional ways lasting for a long time, digital technology has led the road to making
life easier. It is now assisting new companies and enterprises in working more efficiently and
quickly with banks and FIs (Financial Institutions). Customers may now access their financial
information, such as income statements and credit ratings, with a single click on their
smartphones and other mobile devices.
With the deployment of technology such as automation, artificial intelligence (AI), big data,
machine learning (ML), and so on, fintech businesses have effortlessly embraced the
potential of digital transformation. It has given rise to a new viewpoint on how banking
operations should be carried out. Many time-consuming operations, such as contactless
payments and mortgage applications, have been made much faster with the help of these
companies.
With innovations accelerating, financial institutions must look to invest in new technologies
and stay up to speed on all the newest breakthroughs that will enhance the road to digital
transformation.
Deep diving into the current trend, big data, automation, and RPA when combined with
artificial intelligence delivers a major pump to the BFSI industry. The rise of AI-powered
chatbots over the past decade has produced beneficial automation processes that have
made it possible to automate the classification, aggregation, and response to frequent
internal and external requests. Employees from various fields, such as banking, finance, or
insurance, may thereby refocus their attention on jobs that are more important and
distinctive.
The necessity for CXOs to consider productivity, quality, and compliance improvements in
addition to cost benefits from RPA projects was underlined in 2017 Deloitte research.
Moreover, they noted a fourfold rise in respondents’ use of RPA projects between 2016 and
2017.
Intelligent RPA and hyperautomation have been shown to help BFSI organizations with
higher-level operations such as decision making and analysis. They are also useful in
synchronizing and automating different business and IT procedures.

4. Summing it Up
It is quite evident that digital transformation in the banking and financial service sector is
accelerating. Soon almost every bank and the financial institution will have to contemplate
and get digitalized to enhance user experience in sync with the latest technological trends.
Even though the pandemic is in its last stages, online banking usage will undoubtedly
expand, necessitating an improvement in the trustworthiness of their mobile app and
website. There are companies that may give them services for testing their mobile
applications and websites in order to deliver quality assistance. ImpactQA is a well-known
software testing service company that oversees a specialized team of testers to provide
quick testing solutions for BFSI apps. Our worldwide delivery methodology has shown itself
to be a valuable tool in serving global clients in the banking, financial services, and insurance
industries. Contact us to discuss your course of action.