How Automating Can Help the BFSI Sector
Cloud Technology

How Automating Can Help the BFSI Sector

By Mainak Biswas December 17, 2015 - 3,650 views

Automation tools can be used in a wide number of sectors. Across industries, automation has helped companies to grow profits, increase efficiency and also heighten accountability. All these results come in after getting rid of manual tasks which only complicate things. Instead, people can be asked to focus on more analytical and reasoning-based tasks that need actual human intervention.

We are more familiar with automating human resources, business processes of an organization and CRM. Yet, it turns out that the Banking, Financial services and Insurance (BFSI) sector stands to gain the most. With so many numbers and repetitive tasks involved in this sector, it only makes sense to understand why automation might be good for this particular industry.

In this article, let us take a look at how automation might help the BFSI sector to get its groove back and also impress upon its customers. After all, the BFSI sector is not doing particularly well in the wake of bad economy and worldwide crises. Thus, automating this sector has a lot of advantages.

Banking sector

In the banking sector, one can expect more penetration of growth in the rural areas. If automation is bright into practice, it becomes easier to tackle increasing amounts of financial data, credit disbursement and also maintaining the quality of assets. Similarly, automation helps to reduce risks and improves risk management mechanism. Last but not the least, banking officials are some of the first across industries to adopt new technologies.

When we automate banking processes with the help of a banking software development company, customers find credibility in the financial process, which is what is most important. To gain trust and credibility, it is important to carry out tasks quickly and efficiently. Automating most banking transactions help to build trust and also increase the credibility of banking institutions. If we are talking about rural areas, this is only more relevant.

Insurance sector

In the insurance sector, we see a number of people not understanding the policies and which ones to choose from the many that are available. Building portfolios can be made easier when insurance choices are automated. Customers can be encouraged to fill up details on their own without requiring human interaction. This is made possible through applications and web forms that automatically collect and process data related to insurance claims and applications for policies. When it comes to insurance, there is a huge need for accuracy in the pricing of risks.

Similarly, rural markets can be easily targeted when most insurance processes are automated. It becomes easier for on the field staff to reach out to rural customers, sometimes making use of field force management and other tools. It is for this reason that insurance should look towards automation as well.

Financial services

Financial services include payment gateways, mutual funds, stock trading and other such services. It only makes sense why this sector might stand to benefit from automation. If we look at the stock market, there are always fluctuations that the customers would like to be aware of. These fluctuations and changes can be notified to customers in real-time on their mobile devices. Stock purchasing and selling can also be automated.

For instance, a customer might want to sell shares when the price of a stock dips below a certain threshold. Similarly, mutual funds also stand to gain from payment automation. On the other hand, payment gateways mandatorily require some sort of automation. Otherwise, online buying and selling would be impossible. If we look at all these factors, it becomes clear why BFSI stands to gain so much from automation.

Common factors that encourage BFSI sectors to automate

While these are three different sectors with very different approaches to automating, there are certain factors that are common to all three. All three sectors depend on credibility and trust. Without trust and credibility, customers will not trust either bank, insurance companies or financial service providers.

The only way we can rest assured that things are credible is when we know that the services that we offer are efficient, quick and transparent. There should be no room for human errors. Human errors are often misconstrued as deliberate errors to misguide or deceive customers. Thus, when number crunching is automated and when data processing is done in the cloud by software programs, you will only need to concentrate on building that valuable human to human relationship.

This helps to grow your BFSI organization in stature and importance. We are seeing a number of BFSI entities automating almost everything that was once considered the domain of clerks or mid-level managers. Now, most of these tasks can be automated in order to increase efficiency, build transparency and root out malpractices.

Future trends in the BFSI sector

In the near future, we can expect the BFSI sector to lunge forward towards automating most of its processes. This will help the BFSI entities to move towards mobility as well. Automation and mobility are inextricably linked today and for a very good reason. Most of our customers use mobile devices and they expect everything to happen fast.

Linking automation software programs to mobility will help BFSI entities to satisfy their customers and also make things easier to process. This may include looking for new customers, serving existing customers, crunching numbers and a variety of other tasks. Only the most complex tasks and that require human intervention can be carried on manually.

The rest of the tasks and processes can easily be automated. If BFSI entities begin to automate more, we will actually see a more transparent and efficient world tomorrow. It will take a little while before BFSI entities completely immerse themselves in these newer technologies. Customers on the other hand have already adopted both automation and mobility.

With this in mind, it only makes sense to hurtle towards a world that is automated and mobile-oriented. This is not only good for customers but also for BFSI entities that are already reeling under the effects of world economic crises. Automation will reduce expenditure, cut unnecessary jobs and help companies to save money that can be utilized to grow their businesses.

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