Challenges BFSI Organizations Face While Rolling Out Digital Initiatives

Even though the finance industry is quickly progressing toward digital transformation objectives, there is still some missing cohesion. There have been significant initiatives to align things, but complex infrastructures, difficult integrations, high equipment costs, and a lack of professionals all caused the efforts to stall.  

Besides, the rapid increase in Cyberattacks made BFSI organizations witness some stringent penalties, in case of breach. This made the situation more intense making the aforementioned issues as immediate goals and not the digital transformation initiatives.  

“Technology is Power beyond measure, and power without security or control can be a dangerous thing. In short, Cybersecurity is vital to a dynamic yet controlled future.” ~ Kanika Vatsyayan 

However, the sudden outbreak of the pandemic made digitalization a crucial aspect of development and growth strategy, leaving financial institutions struggling. With that being said, it becomes necessary that all the challenges surrounding the digitalization of the BFSI sector must be understood well in time to ensure the required productivity and streamlined operations.  

How Customer Experience Fueled The Digital Banking Strategy? 

Be it any organization or industry, the digital strategy always emerges with the need for improved customer experience and revenue growth. But the processes mostly aim at working on legacy systems, security, and technology integration. It therefore enabled teams to find the focus of why transformation is necessary and how going digital can be the path to success?  

In other words, the banking industry has its own challenges that are likely to cause resistance on the digital transformation initiatives. Besides, lack of IT resources and costs are things that are making the industry fall behind along with the need to address the compliance benchmarks.  

But since digital is so crucial, what are the challenges that are making the BFSI industry fall behind on their digital transformation goals. Let’s find out. 

Getting Familiar With The Paradigm Shift 

When it comes to BFSI sector, there are certain fundamentals associated with the industry operations and processes. And introducing anything technology into the already existing fundamentals calls for so many queries related to implementation, security, and end results.  

However, the pandemic proved to be an ice-breaker for the introduction of digital transformation into the banking and finance sector, leading to a cultural shift. But the process needed the introduction of a shift in culture that involves people with digital know-how and were adaptive to the effects, and understand the impact banking app testing could deliver.  

In other words, it required establishing an understanding of both employee and customer response to the change in paradigm right from the process changes to interacting with technology. Besides, there were organizations that had no prior exposure to digital culture at all, which made the transformation more difficult.  

Moreover, a study even recognized that 80 percent of initiatives fail to align with digital transformation objectives due to the missing digital culture. Though the statistics were backed with so many reasons, the most significant reason was lack of dedication on pursuing digital goals:  

The Missing Focus On People 

Though digital transformation is the key to business success these days, banking, or finance sector, especially the SMEs in the industry often overlook the potential. It mainly involves keeping a focus only on infrastructure and operations and not on establishing a culture that can complement digital goals. Most of the time, executives and managers prefer to stick with conservative decision-making and hierarchy in order to align with their goals of employee empowerment.  

Thus, it is necessary that Banking & Finance companies should consider the need of encouraged learning while accepting any failures that could aid innovation. In other words, developing a digital culture could help BFSI sector to work on anything that hampers the objectives with digital goals. Especially, when lack of training on the right skills is one of the most important reasons behind the failure of digital initiatives.  

On the other hands, organizations that have attained digital success are those that have invested in their employees and trained them in acquiring advanced digital skills. Moreover, such organizations even attract more people due to the improved collaborations and an environment that makes space for autonomy. Cutting it short, it aligns with the belief that better employee experience is vital to create the best digital experience. 

Keeping Customers In Focus Vs Process In Focus 

When we say, the banking and finance industry needs to work on involving people in the digital goals, it never means ignoring the process part. However, it is a practice that has more internal focus and does not have any space for external development. Most of the time, it is meant to work at improving the existing systems or minimizing the implementation costs, leaving no space to include customer’s perspective in the process building.  

But when we say digital companies, it is a consumer-focused concept that aims to leverage higher employee participation to yield higher expectations, without any stress of infrastructure constraints. To quote an example, organizations that work on traditional approach go with a standard approach to collecting the employee opinion on any product. On the other hand, enterprise with digital goals work on harnessing digital tools that can help take an opinion form to the masses, right from employees to users in focus.  

On top of that, the traditional approach usually requires more time and labor expense while working with a digital solution could complete the similar process within minutes or hours. For instance, it could be any form that could be used to fetch user account details for a banking application while sorting the data into different account and customer categories. All in all, it causes a rapid decrease in cost and time, making the most use of automation.

Harnessing No-Code Development 

When it comes to the transformation of BFSI sector, it is all about integrating a digital mindset. Basically, it refers to creating an environment that empowers employees to drive success. For instance, the banking and finance sector could leverage the creativity and potential of the resources to create quality assured banking systems that can deliver exceptional customer experience by either using or scaling the available systems.  

One of the most effective practices that can help such objectives is using the potential of No-code platforms with effective focus on software testing services. A quick example of the same can be harnessing the power of codeless test automation to streamline testing of digital systems for maximum efficiency and output, without burdening resources. Using the technology could allow creating technology at a greater speed and thus making way for high integrity systems. Moreover, working on such practices could complement performance and security goals for enhanced customer journeys, minimizing delivery costs and upgrading employee skills.  

All the best!