# Financial tech: what will stick in a post-COVID world?
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-01-26
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Digital Transformation in Financial Institutions: The Future of Banking
Meta Description: Discover how banks are utilising AI, chatbots, and RPA to automate services, enhance customer experiences, and drive operational efficiency in the financial
URL: https://financedigest.com/financial-tech-what-will-stick-in-a-post-covid-worldhtml

_By **James Mingard,** Head of Retail & Finance at Maintel_

For many sectors companies have been forced to shake up their technology offerings due to the pandemic. The financial industry is no different.  Established banks and [financial institutions](https://www.financedigest.com/3-ways-financial-institutionscan-leverage-live-engagement-on-social-media.html "3 ways financial institutions can leverage Live Engagement on social media") have opened their eyes to the benefits of innovations such as AI and chatbots. This has enabled them to automate their services and make themselves more efficient when they needed it most, while offering [customers a wider range of service](https://www.financedigest.com/id-fraud-is-on-the-rise-can-financial-services-do-more-to-protect-their-customers.html "ID fraud is on the rise: can financial services do more to protect their customers?") options. We have seen a sea of change in the adoption of [technology amongst those in the sector](https://www.financedigest.com/how-video-technology-continues-to-boom-in-the-education-sector.html "How video technology continues to boom in the education sector").

Even as travel and quarantine restrictions [ease and bank](https://www.financedigest.com/analysis-china-central-bank-under-pressure-to-ease-is-hemmed-in-by-inflation-fed-jitters.html "Analysis-China central bank, under pressure to ease, is hemmed-in by inflation, Fed jitters") branches reopen, many of the innovations introduced during the pandemic still align very well with a new customer landscape, where increasing numbers of customers are happily ‘going digital’. Institutions will need to balance digital efficiency and human customer care to provide an effective and competitive customer experience.

[**Banks have gone digital**](https://www.financedigest.com/igtb-launch-digital-transaction-banking-available-as-saas.html "iGTB launch Digital Transaction Banking available as SaaS")

When [bank branches across the country were forced to close](https://www.financedigest.com/banking-stability-worries-go-behind-closed-doors-at-imf-world-bank-meetings.html "Banking stability worries go behind closed doors at IMF-World Bank meetings") under national lockdown measures, a swift and coordinated response was required. Even now [finance and insurance organisations need](https://www.financedigest.com/7-finance-career-options-to-consider-and-what-you-need-to-know-about-each.html "7 Finance Career Options to Consider and What You Need to Know About Each") to deliver an optimal blend of innovative and cost-effective technology to drive operational efficiency, whilst providing differentiating customer experiences. Any inefficiencies or gaps in the process can cause delays and stretch customer patience thin.

Yet using a variety of technologies and siloed solutions from disparate vendors has been complex to manage and not always cost-effective. Even after a year of digital-first banking, legacy systems and technical [debt still represent an enormous share of banking’s](https://www.financedigest.com/christmas-debt-hangovers-how-banks-can-help-customers.html "CHRISTMAS DEBT HANGOVERS: HOW BANKS CAN HELP CUSTOMERS") technological infrastructure. [Nearly 50% of UK banks don’t upgrade old IT systems](https://www.fca.org.uk/news/speeches/cyber-and-technology-resilience-uk-financial-services) when they should, and [43% of US banks still use COBOL](https://www.bmc.com/blogs/cobol-trends/#:~:text=From%20many%20federal%20government%20agencies,ATM%20swipes%20utilize%20COBOL%20code.) – a programming language developed in the 1950s.

Fortunately, over the course of the pandemic, [digital transformation](https://www.financedigest.com/how-digital-is-transforming-finance-in-2023.html "How Digital Is Transforming Finance in 2023") has offered a convenient opportunity to simplify infrastructure and streamline processes by consolidating to a smaller number of suppliers. By replacing existing technologies with a multi-channel contact solution from a single vendor, architecture can be simplified, [costs reduced](https://www.financedigest.com/cobots-in-the-financial-workplace-reducing-costs-attracting-talent-and-enhancing-sustainability.html "Cobots in the financial workplace: Reducing costs, attracting talent and enhancing sustainability"), and resilience enhanced. In this way, integration solutions have made their mark on the [financial services](https://www.financedigest.com/4-ways-high-performance-analytics-powers-financial-services.html "4 ways high-performance analytics powers financial services") landscape, and it’s clear they have much work still to do.

Machine learning technology, such as Robotic Process Automation (RPA), has also played a crucial role in the [drive for efficiency](https://www.financedigest.com/iforces-route-genie-to-drive-efficient-carrier-management-for-freestylextreme.html "IFORCE’S ROUTE GENIE TO DRIVE EFFICIENT CARRIER MANAGEMENT FOR FREESTYLEXTREME"). By streamlining customer service and automating processes throughout the ecosystem, teams can focus on providing an excellent customer experience. This is particularly true in [finance and banking](https://www.financedigest.com/why-finance-professionals-must-bank-on-a-journey-to-the-cloud.html "Why finance professionals must bank on a journey to the cloud"), as real-time, personalised products demand vast amounts of data to be processed instantaneously, adding burdens in terms of time and resources which AI applications can help to alleviate.

RPA and machine intelligence will only [grow in importance](https://www.financedigest.com/factbox-europe-ramps-up-coal-imports-as-energy-supply-fears-grow.html "Factbox-Europe ramps up coal imports as energy supply fears grow") in the new environment. RPA is best for automating high-volume, repetitive and rule-based human to computer interactions, such as copy-paste tasks or moving files from one location to another. However, where data is unstructured, where there is a decision-point in a process or where systems are customer-facing and need to be smart, self-learning and adaptive AI is essential.

Automated decision management [provides](https://www.financedigest.com/fico-provides-decisioning-platform-for-smartphone-only-buddybank-in-italy.html "FICO Provides Decisioning Platform for Smartphone-Only buddybank in Italy") companies with the best approach to make better operational decisions based on customer behaviour and data directly within an organisation’s digital touchpoints. The use of AI at key moments of the customer journey will [reduce operating costs and increase efficiency whilst improving service](https://www.financedigest.com/home-start-lincolnshire-implements-flexible-unified-communications-service-to-reduce-costs.html "HOME-START LINCOLNSHIRE IMPLEMENTS FLEXIBLE UNIFIED COMMUNICATIONS SERVICE TO REDUCE COSTS") speed, relevance and customer satisfaction.

**[Human touch](https://www.financedigest.com/putting-the-human-touch-back-into-banking-magazine.html "“Putting the human touch back into banking”-Magazine") and digital go hand-in-hand**

However, even if [financial institutions continue to operate a banking model](https://www.financedigest.com/10-ways-to-make-your-financial-model-easier-to-understand.html "10 Ways to Make Your Financial Model Easier to Understand") that’s digital-first they should avoid the temptation of going digital-only. Physical [bank branches and offices](https://www.financedigest.com/token-inc-launches-london-office-to-answer-demand-from-european-banks.html "Token, Inc. Launches London Office to Answer Demand from European Banks"), as well as human customer agents, can’t simply be replaced by a digital banking app. Digital and physical channels both play a necessary role in the complete customer journey and need to be blended.

A large number of [services traditionally expected of a bank](https://www.financedigest.com/axion-swiss-bank-and-avaloq-sign-long-term-contract-for-bpo-services.html "Axion Swiss Bank and Avaloq sign long-term contract for BPO services") can be completed online or through an app. But when it comes to financial advice and enquiries, customer agents are still the best placed to help. [More than a third (34%) of British customers say they distrust digital communications from banks, with 33% of 55+ year-olds suspecting paperless banking to be more susceptible to fraud and scams](https://thefinanser.com/2020/05/what-happens-to-customers-who-dont-want-digital.html/). Natural language processing has advanced greatly in recent years, but when it comes to complex queries people prefer the certainty and responsiveness of [dealing with a customer](https://www.financedigest.com/yum-beats-sales-estimates-as-customers-flock-to-kfc-taco-bell-deals.html "Yum beats sales estimates as customers flock to KFC, Taco Bell deals") agent.

There is also the issue of access. A large number of customers – whether elderly, disabled or constrained by a lack of technology – can’t rely on access to purely digital [services in order to manage](https://www.financedigest.com/managing-the-hidden-security-gap-in-financial-services-the-office-printer.html "MANAGING THE HIDDEN SECURITY GAP IN FINANCIAL SERVICES: THE OFFICE PRINTER") their money. Indeed, [a quarter (24%) of UK customers never used online banking in 2020](https://dontdisappoint.me.uk/resources/digital/digital-banking-statistics-uk/). Physical branches and in-person interactions are [needed to service](https://www.financedigest.com/top-5-seo-services-you-need-to-succeed-in-2022.html "Top 5 SEO Services You Need To Succeed In 2022") these customers and ensure they receive the experience they deserve.

Integration technologies and AI have [secured a powerful beachhead in the financial](https://www.financedigest.com/5-steps-to-strengthening-your-online-financial-security.html "5 Steps to Strengthening Your Online Financial Security") technology estate, one that will only grow larger over the next few years. However, the best and most complete customer experience depends on both the latest technologies and a strong foundation of human empathy. The appetite for a totally autonomous, purely digital banking experience remains small. Digital and physical must work together to compete and provide the most responsive, user-friendly experience.

While integration technologies and AI have secured a powerful beachhead in the [financial](https://www.financedigest.com/how-financial-services-companies-can-successfully-utilise-low-code-and-no-code-technologies.html "How financial services companies can successfully utilise low-code and no-code technologies") technology estate, the best and most complete customer experience depends on both the latest technologies and a strong foundation of human empathy. Despite the wonders of a digital-first world, appetite for a totally autonomous, purely digital banking experience remains small. Both the physical and digital elements must collaborate to deliver the most comprehensive, responsive and accessible experience.

To learn more about how Maintel can help your business click [**here**](https://www.maintel.co.uk/industries/financial-services/).


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---