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Banking and Finance Digital Transformation

Digital transformation is in almost every industry today including banking and finance. The financial companies have been facing numerous challenges that necessitated them to have modern digital solutions. A few of the challenges comprise of decline in branch traffic when expectations of consumers were on the surge. Having an increased competition from rival banks and constant rise in regulatory pressures which compressed margins. The financial and banking institutions, therefore, need to keep up with the technology in order to be safe, coherent, and improve business.

How Digital Transformation Changed Banking and Finance Industry

The digital transformation is appearing different at different companies; however, the fundamental characteristics remain the same.

  1. Each and every employee working in the organization is sharing a meaningful shared vision. This enhances working at different levels within the organization and result in building trust and improves transparency.
  2. There are cloud-based services that are agile and economical permitting the businesses to choose standards meeting their requirements.
  3. The consumers are at convenience and ease as they can do business being at a remote location.
  4. The digital transformation is always opening doors to learning new things. Therefore, learning from the outcomes results in a larger change across the company.
  5. The change process is continuous and digital transformation is evolving adaptations for current procedures.
  6. The digital transformation is data-driven and one can analyze data about customers and take preventive measures that might happen within the company.
  7. The digital transformation leads the banking and finance industry to be customer-centric as it offers enhanced services and improved experience to customers.

Digital Disrupters

The digital transformation has led to digital disrupters. There are numerous payment technologies like PayPal and Pioneer which took the banking and finance industry by storm. Tech giants such as Apple and Samsung are also investing in such disrupters used for transactions worldwide. Certain lending platforms e.g. Kabbage have started lending to small businesses. Furthermore, for online businesses stripe is a good option that encourages online transactions.

Machine Learning and Artificial Intelligence in the Banking and Finance Industry

Artificial Intelligence is no doubt transforming the world and it would leave a permanent mark over the banking industry. Cybercrime is resulting in about $500 billion every year. Artificial intelligence and machine learning are already in use in the banking and finance industry in applications such as credit and debit cards having complex algorithms for the detection of fraud and spam activities. Based on machine learning algorithms, an artificial intelligence-based program has been introduced which can detect fraudulent activity and take necessary action within 2 seconds. Mobile banking has been made secure with the help of such technologies e.g. login credentials, fingerprint, and iris detection services.


The is no doubt that technology and digital transformation have changed the way we can think of the process in the banking and finance industry. In fact, the financial industry has been one of the most enhanced areas by digital transformation. The digital transformation in the banking and finance industry is yet to be exploited further in order to facilitate the consumers to a level never achieved before.

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