COVID-19 FORCES FINANCIAL ORGANIZATIONS TO ACCELERATE DIGITAL TRANSFORMATION!
The pandemic has forced financial organizations to “Go Home OR Go Digital ,” driven by a record growth in the number of clients that have been on boarded digitally. In fact, a recent survey found that since the pandemic, there has been a 15% increase in the opening of online accounts. Simply put, if a bank is unable to onboard customers digitally today or in the near-future, they will struggle to keep pace with their competitors.
Prior to the pandemic, financial organizations had been falling behind when it came to Digital Transformation Technology , only increasing resources to address emerging concerns. The current situation has brought to light that financial organizations lack the technology to onboard customers remotely. Many are struggling to operate with reduced staff and closed branches, security problems, and customer service concerns, while also meeting Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements.
In the United State, this became especially important as many small businesses sought to access critical funding provided for under the CARES Act, such as the Payment Protection Program (PPP). As a result of widespread closures, it was no longer possible to apply for a loan or open a business account with a financial organization in person and many financial organizations were unable to onboard new customers remotely. However, by implementing digital on boarding processes, financial organizations enable customers to access services remotely while meeting compliance obligations. The COVID-19 pandemic further highlights how imperative it is to leverage the use of Digital Transformation Technology in support of client onboarding processes, allowing them to operate completely digitally. With technology and increased automation, manual processes can be more streamlined and drive efficiencies across the spectrum. Advanced technologies and capabilities such as natural language processing (NLP), machine learning (ML), optical character recognition (OCR),IOT, and Identification and Verification (ID&V) technology enable financial institutions to collect client data by extracting the required information and text from scanned documents, which can then be cross-referenced against other data sources internally and externally.
The pandemic is highlighting the need for financial institutions to accelerate their digital transformation strategies or risk being outpaced by digital-first competitors. It also highlights how, in times like these, remaining vigilant to emerging financial crime risks needs to remain a top priority, and how digitization can help to ease some of the operational challenges. This technology is no longer a ‘nice to have’, but rather a necessity to address inefficient data management, enhance customer service and ensure the detection and prevention of financial crime. For any financial institution considering investing in new technology solution to keep up with evolving market demands, here are five things to look for. It needs to be:
In order to counteract the rigid, immovable legacy technology, the solution needs to be flexible. It will need to integrate seamlessly to any systems, whether it be from the core financial organization's provider or the financial organizations’s own IT. Smaller technology solutions tend to be more agile and able to react quickly to new challenges and needs from the financial institution. This flexibility will allow the financial institution to adapt quickly to new launches from their tech provider, new regulations the financial institution needs to abide by, other leading-edge solutions and any unforeseen challenges along the way.
For smaller financial institutions, the personal and collaborative approach is everything. They speak to their customers face-to-face and hear their issues first-hand and many financial institutions may have similar burdens to face. Find a solution that aligns with the company’s values and how it works with clients.
It goes without saying that the digital experience is becoming synonymous with the customer experience. If financial institutions want to keep up with the industry behemoths, they will need to adopt a more digital approach to complement their customer-centric values.
The long waiting times for innovation upgrades from core financial institution providers is a massive pain point. A solution that allows financial institutions to make their own edits cuts down on time and cost, creating a path to self-sufficiency.
We all know the stories of institutions being dependent on legacy platforms build with 90s technology. It’s important that any solution that is selected has a forward looking roadmap with a proven record of delivery. Innovation is moving to quickly to be stuck on a platform only focused on the past or the present.
Financial institutions of any size, and within any sector, need to recognise that introducing technology-enabled client onboarding solutions will give them the best possible chance of meeting the continuing market and regulatory challenges ahead. They need to put in place the right technology in place and provide a more efficient client channel, early deliverables, and the agility required to respond to evolving market conditions.
Are you stuck on a challenge and unsure if technology can help you solve it? Maybe we can help. Share it with us at TruePixelGroup and let your challenge meet the possibility!