# Why financial services companies should consider RFPs in their digital transformation strategies
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-08-31
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Maximise ROI: Enhance Financial Services RFP Responses
Meta Description: Learn how to save time and resources by automating RFP responses and ensuring consistency to secure more deals in the growing financial services sector.
URL: https://financedigest.com/why-financial-services-companies-should-consider-rfps-in-their-digital-transformation-strategieshtml

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_By **Tobias Dawes,** CEO and Founder of Avnio_

There’s no doubt that the financial services sector will be instrumental to the post-pandemic recovery ahead, whether it’s advisors navigating customers through the changing business landscape, or M&A firms managing the soar in post-lockdown deals [\[1\]](#_ftn1). And, with this surge in demand for financial services expertise, comes a tidal wave of new business opportunities for firms across the sector.

Consequently, [finance companies are naturally going to be spending](https://www.financedigest.com/student-finances-exposed-how-do-they-really-spend-their-money.html "Student finances exposed: How do they really spend their money?") more time and resources on answering RFPs, creating a much bigger time strain on talented, experienced employees, where previously, winning new business may have been subsidiary to their main role. Organisations are now going to have to get serious about the demands, processes, workflows and technology around answering RFPs, and reflect on how this fits in to their long-term [digital transformation](https://www.financedigest.com/digital-transformation-for-the-world-of-finance-the-rise-in-collaboration-tools-and-saas-applications.html "Digital transformation for the world of finance: The rise in collaboration tools and SaaS applications ") strategies.

**_RFPs are a huge time strain_**

An hour’s [worth of employees’ time can be costly and for businesses using an external partner for some specialist knowledge services](https://www.financedigest.com/service-the-cfo-why-context-is-worth-80-iq-points.html "Service & The CFO: Why Context Is Worth 80 IQ Points"), an hour’s time could be extortionate. It’s worth considering these [costs when it comes to answering RFPs, as well as the costs related to the work that the team](https://www.financedigest.com/finance-teams-have-been-left-in-the-dark-on-the-real-cost-of-working-from-home.html "Finance teams have been left in the dark on the real cost of working from home") isn’t able to do while they’re having to work on the responses to DDQs and the pitch itself.

For many, it’s the repetition in the RFP and DDQ questions that [really costs time and money](https://www.financedigest.com/who-really-controls-your-money.html "Who Really Controls Your Money?"). Leaders know that senior colleagues and SMEs are an expensive [resource but continue](https://www.financedigest.com/uk-to-manage-water-resources-carefully-as-drought-continues.html "UK to manage water resources carefully as drought continues") to assign the same questions to them. If companies are going to handle even more RFPs going forwards, they [need to rethink](https://www.financedigest.com/does-the-monzo-effect-mean-banks-will-need-to-rethink-brand-building.html "Does the ‘Monzo effect’ mean banks will need to rethink brand building?") this unnecessary waste of valuable resources.

To do this, [it’s important for leaders to reduce the time](https://www.financedigest.com/why-its-time-to-adapt-to-the-virtual-world-how-to-master-online-negotiations.html "Why it’s time to adapt to the virtual world: how to master online negotiations") taken on responses, particularly for frequently asked questions. This may involve automating the responses as much as possible to free up colleagues and SMEs.

**_Most companies are inconsistent in their RFP responses_**

As firms commit to more and more new business processes, it’s worth [considering how inconsistencies can emerge on the responses due to staff changes](https://www.financedigest.com/1-in-10-workers-considering-a-career-change-in-the-next-year.html "1 in 10 workers considering a career change in the next year"). For example, when fully qualified [employees who have been working at the company](https://www.financedigest.com/why-more-companies-are-asking-new-employees-to-commence-employment-before-christmas.html "Why more companies are asking new employees to commence employment BEFORE Christmas.") for longer are out of the office, not all firms will have approved responses for less qualified, less experienced employees to make use of. It’s no wonder that there are irregularities in how each RFP is answered.

Those who are lucky enough to avoid being contractually bound to their RFP responses if they [win the deal might consider the risk](https://www.financedigest.com/synechron-wins-global-acord-insurance-innovation-award-for-second-consecutive-ai-powered-insurtech-accelerator-recognized-for-innovation-in-risk-visualization.html "Synechron wins Global ACORD Insurance Innovation Award for Second Consecutive AI-Powered InsurTech Accelerator Recognized for Innovation in Risk Visualization") acceptable. However, the more RFPs a company answers, the more risk they are taking on.

For this reason, it is necessary to have a consistent RFP knowledge base. This is where using AI can be game-changing in bidding processes. What’s more, AI has evolved to the point by which it can now teach a computer what the best answer is to an RFP question, even if the question doesn’t use exactly the same phraseology. [Organisations who are answering increasing numbers of RFPs should consider](https://www.financedigest.com/over-half-of-organisations-would-consider-using-cryptocurrencies-for-business-transactions-though-8-in-10-acknowledge-the-increased-risk-of-associated-ddos-attacks.html "Over half of organisations would consider using cryptocurrencies for business transactions, though 8 in 10 acknowledge the increased risk of associated DDoS attacks") automating the responses so that they are always consistent and compliant, but also optimising their answers.

**_Many firms have to finish answering an RFP to discover that it wasn’t a good fit_**

Even for firms opting for a ‘we are not in the business of [turning](https://www.financedigest.com/6-expert-tips-to-turn-your-photography-passion-into-a-business-2.html "6 Expert Tips to Turn Your Photography Passion into a Business") down business’ approach, it’s still likely that they will put more effort into working on the pitches that have more chance of success.

The more RFPs a company answers, the more useful it is to have a tool that helps them qualify the RFP as quickly as possible with minimal effort. Considering the time it can take for teams to answer RFPs, as well as the opportunity cost, businesses [need to know](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") as soon as possible which RFPs deserve more effort.

[Companies who want to keep](https://www.financedigest.com/keeping-an-eye-on-company-purse-strings-where-do-businesses-go-wrong.html "Keeping an eye on company purse strings – where do businesses go wrong?") up with their competitors can no longer afford to answer their RFPs and questionnaires manually, or rely on using technology built in the early 2000s. [Businesses that don’t](https://www.financedigest.com/pitiless-machines-will-kill-your-business-if-you-dont-respond-now-warns-servion.html "‘Pitiless machines’ will kill your business if you don’t respond now, warns Servion") utilise AI technology to scale their expert response to the tsunami of RFPs, risk overwhelming themselves.

**Considering RFPs in [digital transformation](https://www.financedigest.com/world-class-finance-digital-transformation-and-analytics-based-decision-making-among-key-imperatives-for-creating-finance-agility.html "World-Class Finance: Digital Transformation and Analytics-Based Decision Making Among Key Imperatives for Creating Finance Agility") strategies**

The COVID-19 pandemic has taken its toll on [companies around](https://www.financedigest.com/around-40-of-german-companies-expect-output-decline-in-2023-iw-institute.html "Around 40% of German companies expect output decline in 2023 – IW institute") the world, particularly when it comes to retaining business. For many, doubling efforts on answering RFPs will be key to [putting businesses back](https://www.financedigest.com/putting-the-human-touch-back-into-banking-magazine.html "“Putting the human touch back into banking”-Magazine") on track.

What’s more, the end of lockdown restrictions hasn’t eradicated the need for continued [digital transformation](https://www.financedigest.com/3-reasons-why-businesses-get-stuck-at-the-starting-gate-of-digital-transformation.html "3 Reasons Why Businesses Get Stuck At The Starting Gate Of Digital Transformation") programmes. In fact, Gartner predicts IT spending to increase as companies focus on new digital business initiatives post-pandemic [\[2\]](#_ftn2).

With this in mind, now is the time for [financial services firms to evaluate how technology](https://www.financedigest.com/financial-firms-can-use-technology-combat-todays-cybercriminals.html "How financial firms can use technology to combat today’s cybercriminals") can support them in reducing unnecessary time spent on RFPs and how the process could be made more efficient and accurate with automation. By streamlining processes and embracing new technologies, [financial services](https://www.financedigest.com/the-future-for-financial-services-is-digital-engagement.html "The future for financial services is digital engagement") companies could find themselves in a much more favourable position when it comes to winning new business, which will, ultimately, help them drive growth short and long term.

[\[1\]](#_ftnref1) [https://www2.deloitte.com/us/en/insights/topics/strategy/m-a-markets-post-pandemic-business.html](https://www2.deloitte.com/us/en/insights/topics/strategy/m-a-markets-post-pandemic-business.html)

[\[2\]](#_ftnref2) [https://www.gartner.com/en/newsroom/press-releases/2021-04-07-gartner-forecasts-worldwide-it-spending-to-reach-4-trillion-in-2021](https://www.gartner.com/en/newsroom/press-releases/2021-04-07-gartner-forecasts-worldwide-it-spending-to-reach-4-trillion-in-2021)


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