# Lessons learnt: What financial technologies will survive post-COVID? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-07-30 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: Digital Transformation in Finance: Enhancing Efficiency with Meta Description: Explore how the adoption of AI and chatbots in the financial sector is transforming the customer experience and operational efficiency in the post-pandemic URL: https://financedigest.com/lessons-learnt-what-financial-technologies-will-survive-post-covidhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/img9589-1972-sbi-300726683-1736838093851-compressed.jpg) _By **James Mingard,** Head of Retail & Finance at Maintel_ The pandemic has caused a sea of change in the adoption of technology amongst those in the financial sector. Established banks and [financial institutions](https://www.financedigest.com/the-future-of-financial-institutions-in-2023.html "The Future of Financial Institutions in 2023") 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. 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 in order to provide an effective and competitive customer experience. **Digital-first banking** When [bank branches across the country were forced to close under national](https://www.financedigest.com/swiss-national-bank-says-inflation-battle-not-yet-won.html "Swiss National Bank says inflation battle not yet won") lockdown measures, a swift and coordinated response was required. Even now [finance and insurance organisations need to deliver an optimal blend of innovative](https://www.financedigest.com/innovations-in-finance.html "Innovations in finance") 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](https://www.financedigest.com/peppermint-technology-revamps-communications-with-via-voice-solution.html "PEPPERMINT TECHNOLOGY REVAMPS COMMUNICATIONS WITH VIA VOICE SOLUTION") 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 technological](https://www.financedigest.com/6-technology-trends-banking-2019.html "6 Technology Trends for Banking in 2019") 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/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") 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. By [streamlining customer service and automating processes](https://www.financedigest.com/alzheimers-research-uk-streamlines-cheque-processing-with-checkprint.html "Alzheimer’s Research UK Streamlines Cheque Processing with Checkprint") 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](https://www.financedigest.com/resilience-how-a-glory-file-helps-traveltech-founder-julie-grieve-move-onwards-and-upwards.html "Resilience: How a ‘glory file’ helps traveltech founder Julie Grieve move onwards and upwards") 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 companies with the best approach to make better operational decisions based on [customer behaviour and data](https://www.financedigest.com/manchester-arts-centre-the-lowry-selects-logpoints-siem-technology-to-safeguard-customer-data.html "Manchester arts centre The Lowry selects LogPoint’s SIEM technology to safeguard customer 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. **A** [human touch](https://www.financedigest.com/putting-the-human-touch-back-into-banking-magazine.html "“Putting the human touch back into banking”-Magazine") 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, as well as human customer agents, [can’t simply be replaced by a digital](https://www.financedigest.com/you-cant-get-faster-than-that-spring-statement-update-delivered-digitally-as-it-happens-with-app-driven-technology.html "‘You Can’t Get Faster Than That’ – Spring Statement Update Delivered Digitally As It Happens with App-driven technology") 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 can be completed online or through an app](https://www.financedigest.com/why-pay-by-bank-app-will-come-into-its-own-in-2022.html "Why Pay by Bank App will come into its own in 2022 "). But when it comes to [financial advice](https://www.financedigest.com/the-changing-face-of-financial-advice.html "The changing face of 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](https://www.financedigest.com/matching-digital-adoption-with-cybersecurity-in-the-financial-services-industry.html "Matching digital adoption with cybersecurity in the financial services industry") in order to manage 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 these customers and ensure they receive the experience](https://www.financedigest.com/video-collaboration-is-pushing-the-boundaries-of-the-customer-experience-in-financial-services.html "Video Collaboration is pushing the boundaries of the customer experience in Financial Services") they deserve. The best and most complete customer [experience depends on both the latest technologies](https://www.financedigest.com/how-is-modern-technology-shaping-our-in-store-experience.html "How Is Modern Technology Shaping Our In Store Experience?") and a strong foundation of human empathy. Integration technologies and AI have secured a powerful beachhead in the [financial](https://www.financedigest.com/financial-firms-can-use-technology-combat-todays-cybercriminals.html "How financial firms can use technology to combat today’s cybercriminals") technology estate, one that will only grow larger over the next few years. However, the appetite for a totally autonomous, purely digital banking experience remains small. To deliver a responsive and competitive experience, digital and physical must work together. 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. 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