Each and every sector now is looking for a faster digital transformation in doing business online, whether it is private or public; a massive change is being seen from the past couple of years . And the last three months have been extremely crucial to survive in the business. Here businesses have leveraged the use of digital mediums to provide services to its customers at the comfort of their homes. From developing websites to mobile sites to mobile apps. Everyone is competing to serve the best through their online channels. And the financial sector is no exception here; from providing online services to applying for loans online to making payments online everything is quick. As a matter of fact, the financial sector is one of the few sectors which are running all the time unlike, other sectors. With digital platforms & lead sourcing business ideas through web & mobile devices, financial institutions are making a difference in customer’s lives by providing loans and other services in just a click of a button.
Digital penetration in lending has been growing and there is huge potential left to be seen. Digital mediums will become a "Sky Branches" which will become first footfall for any prospect or customer before physical branch interaction. The ease of application, automation of process continues to evolve and digital adaption becomes exigency”, Mr. Sivakumar Nandipati, Chief Digital Officer, Fedbank Financial Services.
Digital Strategies that Financial Institution are adopting
Online applications: With services online, it becomes easier for customers to fill application forms, submit KYC documents, and choose loan products/schemes anytime anywhere in a matter of minutes. Unlike the traditional process where an individual was required to visit the Financial Institution for getting a loan. Also, the loan disbursal time would take a couple of days to get credited into the account.
With digitalization of loan services, customers are required to visit branches, but less often while most of the things can be done online like uploading KYC, forms etc. Online applications are flexible, reduces time, require less paperwork and are convenient.
Privacy and Security : It is of severe importance for anyone, and it becomes a major task for the Financial Institution to ensure customer data is safe with the use of significant technologies.
Cyber crime is a threat to all the digital businesses especially to Financial Institutions where customers trust upon them for their money matters. User authentication, regular communication via email/sms and secure infrastructure are some of the key steps FIs are taking to tackle Privacy and Security concerns.
Artificial Intelligence & Credit Underwriting: Companies are making use of AI (Artificial Intelligence) to solve customer queries, complaints, and assist customers in applying for a loan. AI is also helping companies to display their most likely product & services upfront.
AI is also helping with Digital Credit Underwriting where lenders are scrutinizing loan borrowers to access creditworthiness and their ability to repay loans. It’s a crucial aspect of loan approvals for any financial institutions for assessing borrowers. Companies are making use of some of the technologies like AIML (Artificial Intelligence Machine Learning) to determine customer’s income, credit history and other details.
Automating Processes: By automating the processes companies are eliminating manual intervention by using significant applications, technologies and software designed to handle online requests which are functional 24*7. Thus helping to make documentation, KYC & other work easy for the borrower as well as for the lender. Companies are highly making use of RPA (Robotic Process Automation) to automate majority of their services which provide high accuracy as compared to the usual manual work that was being done previously.
Marketing & Promotions: Unlike the old pattern where door to door marketing was a trend, companies are now marketing their products & services through digital mediums. Email marketing, social media marketing, SMS marketing, telecalling are some of the mediums companies are adopting to reach out to potential customers. They are investing highly on online channels to create their brand image, build a fan base, attract customers and earn profits by marketing online.
The key aspect here is to stay and survive in the business by adopting technologies to ensure safety and security, use creative marketing skills and launch new products to fulfill ever increasing customer demands from time to time.
EPIC of Revolutionising the face of Digital lending
Excellence in bringing business: With our Digital platforms & lead sourcing business ideas through web & mobile devices, we‘re making a difference in customer’s lives by providing loans in the comfort of their homes. All the documentation can be done online.
Process Automation: By automating some of the processes we are making a difference in people’s lives by eliminating manual intervention by means of significant applications designed for various team. Thus helping to make documentation, KYC & sales related work easy.
Integrity of Credit underwriting: With Digital underwriting, we’re scrutinizing loan borrowers in order to access creditworthiness and their ability to repay loans. It’s a crucial aspect of loan approvals for any financial institutions for assessing borrowers.
Customer Centricity: Customer first is the core value for all of us at Fedbank. We are always keen to bring trust among our customers at all times, so that we be the preferred choice for them at any point in time,
Mr.Sivakumar Nandipati, Chief Digital Officer, Fedbank Financial Services.