Digitalization in Financial Services and the Hurling Hurdles

Digitalization has changed the face of financial services for retail as well as institutional
clients. There is no queue-standing and long waiting hours, rather a finger snap does the
required. The integrated process has no time-bar, and it could be as easy to opt for a loan as
ordering a pizza. The relationship managers have gone virtual too. Looking at the spectrum
of institutional financing and working capital management, the parties to transactions have
eliminated most of the paperwork. Contracts are e-signed and you have managerial support
popping up on your screens.

When it all seems burgeoning, there are also a few fences to cross while moving finances
online.

Sustainable Technological Support- Developing an app for customers that is user-friendly for
their apple/android device sounds like a no-big-deal. But the performance that could ace
customer experience is the key. Incompetent apps that crash amidst transaction is a glitch
that most of us experience.

To fix it, we need an effective technological support system that is sustainable in the long
run. Timely response to customer queries and steadfast innovations to keep pace with the
industry can also be a long-term solution. Robust software testing should be implemented
for uninterrupted customer experience.

Weak Infrastructure- Emerging countries often see a dull day when it comes to
infrastructure in the financial sector. Systems and procedures for transaction settlements
are more orthodox as compared to the developed counterparts of the world.

The banking node of the finance industry is the strongest and emergence of Fintech
powerhouses could aid them further. Fintech could fill in the gaps by providing channels and
increased processing capabilities. Fintech could be a possible solution to traditional banks
that find it difficult to upgrade with the digitalized environment.

One size does not fit all- Products available for investment may not be suitable for all
clientele, and there could be need-specific demand. Though most deposits and loan
products are self-explanatory, a study about the client risk-return profile adds value. A
background check by way of surveys for both individual and institutional clients can be
beneficial for customizing products.

In an age of fast lending and e-wallets, the banking system should soon be subject to
change. The amalgamation of big data and financial services could enhance the customer
experience. Distributed ledger technology or famously called, blockchain technology could
also play a role in the future for managing payments and receipts. However, a conservative
approach in a country like ours leaves us with many doubts.