Here’s what the digital transformation playbook of the finance sector is about.
The Digital Transformation Playbook of Finance Sector
The Finance Sector is one of the most influential sectors because it can change the course of history, on a global scale. Though there are many ways in which an individual can get directly involved in the financial sector, the most common way is through trading in stocks, bonds, commodities, gold, currencies, and other assets. The finance sector has been rapidly changing over the past few years and this is because of digitization and automation.
Here’s what the digital transformation playbook of the finance sector looks like:
The finance sector uses robots to automate and provide a streamlined experience to investors who use their services. For example, Robo-advisors are making their presence felt by providing investment services at a fraction of investment costs. This is by automating many manual processes such as portfolio management and fund allocation.
Robo-advisors help people invest in low-cost ETFs or index funds and thereby help them build a profitable portfolio. You can do so with minimal efforts on the part of the investor who sits back and relaxes. While the Robo-advisor does all of his work for him in terms of managing his portfolio and making sure that he gets good returns on his investments.
2. Artificial Intelligence (AI):
Finance uses AI for multiple purposes in various industries such as healthcare, manufacturing, banking, etc. But when it comes to the finance sector it’s used in providing customer experience (CX). The AI solution for CX helps users resolve their queries instantly without much effort.
The AI solution also helps people have a better understanding of their financial health. For instance, by offering them insights into their spending habits etc., thus improving their overall financial wellness. It also helps people get personalized recommendations from experts on how they should be investing for a better future.
3. Virtual Reality (VR):
Finance use VR to train employees instead of using paper-based training methods which have been around for ages now. VR provides a highly engaging environment for employees. Which will lead to better employee engagement and retention rate over paper-based training. Which is claimed to be boring and less interactive.
VR makes learning fun by immersing employees inside a virtual world so that they can interact with their peers while knowledge transfers take place between them resulting in enhanced problem-solving skills among employees along with boosting their morale while learning.
4. Internet of Things (IoT):
The IoT is being used in the finance sector to make transactions more secure, reduce cybercrimes, provide a better experience for customers, etc., The IoT helps financial institutions to implement their strategy by making sure that it’s aligned with the changing consumer behavior.
It also helps them execute their strategy by offering them real-time data analysis with the help of automated processes and also helps them measure their performance based on KPIs.
And it’s not just about the technology; the finance sector is also making use of digital content such as blogs and videos to spread awareness about financial planning and investment as well as educate their employees about these topics through story-telling and other interesting formats which help them retain information more efficiently.