Imagine walking into a bank and completing all your transactions in minutes, without having to wait in long queues. Or making claims at home while accessing your insurance policy details. It's not just a fantasy, it's a reality that custom software can bring to the BFSI sector.
People no longer stay loyal to a bank or a financial institution as they do to their spouses. The only way a customer will stick with a bank is if it offers a seamless, immersive Customer Experience (CX). CX is what makes or breaks a business. BFSI firms aren't exempt from it.
BFSI has been investing more and more in fintech software and peer-to-peer payments. The peer-to-peer mobile banking app payments market in the USA is one of the biggest worldwide. According to Statista, the financial market has soared from $151 billion in 2017 to $381 billion in 2022. Although box solutions may seem cheaper, they're not cheap in the long run. Since they're designed to accommodate many companies, you'll get a limited set of features. In addition, you can't delete or add new features when you need them. BFSI companies can save money by using custom software instead of off-the-shelf solutions. Custom software applications can also help BFSI companies increase efficiency since they're tailored to their specific needs and processes, so they get the most out of them.
Streamlining processes: Custom software is helpful for streamlining processes. It's common for BFSI companies to have long wait times for customers because their processes are complex and time-consuming. Organizations in the BFSI sector can automate routine tasks with custom software, reducing the time and effort needed to complete transactions. It's possible to automate the loan approval process with custom software, so customers get a response in minutes instead of days. As a result, CX gets better and efficiency spikes up.
Enhancing Customer Engagement: Customer engagement is a crucial aspect of the BFSI sector, and custom software can help. By using custom software, BFSI companies can provide their customers with a personalized experience, which can increase customer loyalty. You can use custom software to give customers a dashboard where they can see their finances, make transactions, and track their investments. Customer engagement and building a strong relationship between the company and the customer can be improved with this level of access and control.
Providing Personalized Experiences: Custom software can be used to provide customers with a personalized experience. Custom software can analyze customer behaviour and preferences to make tailored recommendations for financial products and services. Not only does this help the customer make informed decisions, but it also enhances their overall experience. Customers can also get real-time alerts and notifications through custom software, ensuring they're always aware of any updates or changes to their finances. Having this kind of transparency and communication builds trust and confidence between the company and the customer.
Enhancing security: In the BFSI sector, security is a big deal, and custom software can help. By using custom software, BFSI companies can implement robust security protocols that prevent unauthorized access. Using custom software, you can implement two-factor authentication, which requires customers to enter a unique code along with their password. Only authorized users can access sensitive financial information, reducing fraud and identity theft.
The integration of Artificial Intelligence (AI) and Machine Learning (ML) into custom software in the BFSI sector is one of the most exciting future possibilities. AI and ML will help BFSI organizations provide even more personalized and efficient services to their customers. Blockchain technology could also be integrated into custom software in the future. In the BFSI sector, blockchain technology can improve security measures by offering unparalleled security and transparency.
The future of custom software in the BFSI sector will also be dominated by Virtual Reality (VR) and Augmented Reality (AR). BFSI organizations can provide customers with an immersive and interactive experience by using VR and AR, allowing them to access financial services and products virtually. Next, IoT integration into custom software is another exciting future possibility. With IoT, BFSI organizations can collect and analyze data from a range of devices, giving customers real-time insight into their finances.
For BFSI firms, custom software will catalyze the next wave of growth and keep them ahead on the innovation curve.