Following the unprecedented impact of the pandemic, customers are looking for something different; making purchases using smart devices in a single-click engagement? Or, personalized banking and investment suggestions with analytics on fingertips? Or easy access to loans and collaterals via fully digital experiences?
But, are the banks really prepared for such customer expectations who demand simple, safe, and end-to-end banking experiences? The amalgamation of evolving customer demands, back-office operations, and technology-driven opportunities has forced banks to realize that their existing infrastructure is limited for the future of banking.
Indeed, banks are required to achieve operational efficiency while supporting innovations that increase business and consumer value. A transformational strategy is imperative that include advanced analytics, modernized infrastructure, cloud-native approaches, and 360-degreee risk and fraud mitigation.
Hence, Industry 4.0 is an answer. These technologies provide a load of possibilities for innovation and varied revenue generation while enabling banks to cope with ever-changing customer expectations.
Industry 4.0: A Boon to Productivity
Typically, Industry 4.0 implies transforming the economy and society using intelligent software, robotics, cloud computing technologies, AI, big data, and other innovations. This is an ecosystem of smart digital machines with people, processes, tools, and technologies. The process is driven by deep digital integration and automation that focuses on achieving operational effectiveness and productivity, and therefore competitiveness in a global marketplace.
In the banking world, Industry 4.0 technologies unlock new dimensions. There is an ample scope to launch new banking services and opportunities to improve the business performance and end customer experiences. Additionally, industry 4.0 provides flexibility in production processes; it helps in developing tailored products and services for multiple audience segments, thereby satisfying personalized needs at a marginal cost.
For instance, a renowned digital bank achieved a risk-proof transformation on Azure at reduced costs, and a Middle East bank embraced high scalability and innovation with market-lead financial products and services, all thanks to industry 4.0 technologies such as cloud, automation, AI.
How Industry 4.0 is Impacting Banks?
With technological improvements, customer expectations rise. They demand greater accessibility, consistency, and quicker yet personalized services. The consumer-facing solution or app must be up and running 24/7. This forces banks to transform aggressively and deliver consistently innovative offerings in order to remain resilient and agile. Following is the impact of Industry 4.0 technologies for the BFSI industry.
Artificial Intelligence: AI offers banks the benefits of digitization and enables them to compete with FinTech players. AI-driven capabilities help banks deliver intelligent, personalized solutions with varied experiences at scale in real-time.
Big Data and Advance Analytics: Banking data is used to generate real-time analytical insights to optimize performance while offering qualitative services at the right time. This helps banks to understand customer pain points, and preferences which in turn drives demand, sales, and retention.
IoT: IoT brings connective capacity, and sensor-based capabilities for banks that make them more intelligent, responsive platforms. Additionally, IoT provides a new level of security, process automation, and data-driven customer services.
Cloud and Automation: Cloud adds superior value proposition with streamlined omnichannel journeys. This provides a vast infra pool to modernize the banking IT stacks with faster storage and processing, highest availability-scalability-resiliency, reduced IT overhead, and enables automated end-to-end managed services from partner ecosystems.
Embracing Industry 4.0 Fail-proof
As we embark on the tech-driven era, banks are experiencing unavoidable obstacles such as inefficient legacy systems, limited scalability, lack of developer expertise, security risks, and new industry regulations. In response, they are turning towards modern technologies such as the cloud.
Indeed, a full-scale cloud transformation is necessary to modernize the core banking platforms. This enables banks to improve operational processes and cost savings while adopting regulatory-compliant new business models. It’s custom, future-proof architectures allow quick adjustments in response to rapidly changing customer behaviours and market developments while enabling intelligent, data-driven decision-making.
The thrust of digital innovation impacts banks positively along with the requirement for a competent transformation partner to keep pace with marketplace changes - be it modernized technology, digital talent, or updated processes. The right partner will help to modernize the entire mission-critical environment under a single SLA. And with it, the benefits are immense productivity enhancement, speedy transactions, effective risk management, and real-time information systems with 24*7 monitoring.
Adopting Future-proof Banking with Bank-in-a-box
As modern technologies result in reduced costs, optimized processes, and fast product delivery, banks are pressurized to offer new digital solutions. In this race, Cloud4C next generation banking cloud solution caters the needs of the hour. Banks can use this solution to migrate their existing applications from legacy platforms to the cloud platform of their own choice.
Cloud4C has developed Bank-in-a-Box in association with core banks and digital banking application providers that make digital transformation seamless and deliver full accountability within a single SLA till application login layer. This cloud-based framework provides risk-mitigated transformation security, compliance, and flexibility that enables banks to launch products swiftly into the market faster.
To host a greenfield or a brownfield core banking, or deploy new digital banking channels, Cloud4C’s Bank-in-a-Box makes cloud transformation journeys seamless. With the maturity of banking industry towards digital transformation, Bank-in-a-box offers a single solution for all your IT needs. This is an Integrated Managed Services Framework for Banks that works in a precise format as shown below in the picture:
What you will get?
- Regulatory-approved security stack with 40+ Security controls, tailored specifically for banks
- Total ownership – 99.99 % single SLA delivered at application login with 25 centres of excellence
- Compliance to local data residency and sovereign norms in 52 global locations
- End-to-End Cloud journey ownership including IT modernization and Migration
- Flexible pricing model per branch, per transaction, per account, etc.
Explore more about Cloud4C’s Bank-in-a-Box here.