The BFSI Industry Solutions
BFSI organizations are undergoing a rapid transformation with a fast changing regulatory environment and changes which are market-driven.
The banking and financial services industry is going through a fast transformation with a rapidly changing regulatory environment and changes that are market-driven. The growing electrification in capital market and traditional channels displacement in banking and insurance add pressure to margins.
THE NORM IN BFSI
FLEXIBILITY OF BFSI SOLUTIONS
Solutions could be deployed on premise, on an array of hardware platforms or shared infrastructure, enabling one to keep the existing infrastructure move to a lower cost stack or need not worry on infrastructure at all. The systems are modular, enabling for progressive renovation, build and migrate strategies that dramatically lower risk and speed up time to value.
THE CHALLENGE IN THE BFSI INDUSTRY
As of the present, most financial institutions responded to the challenge of financial technology in one of three methods. The first adopted a wait-and-see approach that conserve their resources until the emergence of the clear technology winners. They risk getting caught up unprepared when threat to their business grows more imminent. The second group acquired financial technology organizations to have access to new technologies. However, they often have trouble with integration. There are also companies that invest in considerable amount of money and time in fixing their own IT landscape, which typically is fragmented and complicated by legacy systems that are difficult to maintain, update and improve.
FOUR INNOVATIONS FOR BFSI
2. Business API or application programming interface. It has been used for many years by software developers for assembling program components within an app. The new use of APIs is to make available business functionalities as Internet components. The APIs use is to grow volumes from current customers and draw near customers without friction.
3. Social-media based, crowd-sourced identity system. In the present financial system, regulation impose banks and other financial institutions to conduct a KYC or Know Your Customer activities with the aim of confirming people’s identity.
4. Using the open source movement. One good example is Mozilla, which makes it possible to make a community of millions of developers who work on the same project based on meritocracy.
THE FINANCIAL SYSTEM PLATFORM
1. Be safely and reliably accessible from connected devices, from smart phones, feature phones to other specialized devices.
2. Allow customers to own their accounts and operate them themselves or select freely who to contact in order to operate them.
3. Enable new clients to be seamlessly connected, with the use of crowd-sourced and flexible know-your-customer system.
4. Should be based on open APIs so that customers could choose how to combine the services freely on the platform in new ways that they prefer.
5. Should be based on open APIs, so new service providers, such as insurances, loans, payments and others could be easily connected and discovered.
Technology is controlling almost all aspects of life. Thus, when it comes to BFSI organizations, all the major stakeholders should be around the table to deploy the technology to work safely, reliably and openly.
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ABOUT THE AUTHOR
Ritesh Mehta works as a senior Technical Account Manager in a software development company named TatvaSoft Australia based in Melbourne. He specializes in Agile Scrum methodology, Marketing Ops (MRM) application development, SAAS & SOA application development, Offshore & Vendor team management. Also, he is knowledgeable and well-experienced in conducting business analysis, product development, team management and client relationship management.