The BFSI & Fintech Survey Report 2024, conducted by CIO News in collaboration with Grant Thornton Bharat, provides valuable insights into the current trends, challenges, and best practices within the banking, financial services, and insurance sectors in India.
Here are the key highlights from the report:
Digital Transformation in the Banking Sector
- Banks are prioritizing customer-centric digital transformation initiatives to meet evolving customer expectations, comply with regulations, stay competitive, and enhance operational efficiency.
- Key focus areas include legacy system modernization, cloud adoption, cybersecurity enhancement, customer experience improvement, and data analytics.
- 50% of surveyed banks are investing in AI/ML, 31% in data analytics, and others in technologies like chatbots, AR/VR, IoT, and quantum computing.
- Banks are collaborating with fintech startups and third-party providers to drive targeted innovation and growth aligned with business needs.
Customer Experience (CX) in the Banking Sector
- 82% of surveyed banks rate CX as extremely important to their strategy, with 18% rating it as important.
- Banks regularly seek customer feedback to deliver an optimal CX, with CSAT (53%), NPS (29%), and CES (13%) being the primary metrics used to gauge changes in customer satisfaction.
- Strategies to enhance CX include proactive customer engagement, leveraging predictive analytics to anticipate customer needs, and providing personalized offerings, conversational AI, and a blend of digital and human touch.
Cybersecurity Practices in the Banking Sector
- Banks focus on employee training and awareness programs to strengthen their cybersecurity, with varied training frequencies: quarterly (44%), annually (13%), semi-annually (19%), and during induction (24%).
- 42% of banks conduct comprehensive cybersecurity risk assessments quarterly, 34% annually, and 24% semi-annually.
- Key cybersecurity investments include endpoint detection and response (24%) and SIEM systems (21%), with 48% of surveyed banks using end-to-end encryption for sensitive communication.
- Strategies for managing cybersecurity risks include data encryption, continuous monitoring, incident response planning, and collaboration with external experts.
Trends in the Insurance Sector
- The insurance sector is focusing on enhancing customer experience and operational efficiency as high-priority areas.
- Adoption of advanced technologies like AI and IoT is being leveraged for data analytics, customer service, and real-time insights.
- Success is measured through increased customer satisfaction and operational efficiency improvements.
Challenges in Digital Transformation
- Resistance to change, integration with legacy systems, talent shortages, budget constraints, and data security concerns are the primary challenges faced by banks and insurers in implementing digital transformation.
The Way Forward
- Banks and insurers are prioritizing AI implementation, enhancing digital banking experiences, establishing innovation labs, and elevating customer satisfaction to enhance competitiveness, streamline operations, and effectively meet the changing needs of customers.
- Collaboration with fintechs and third-party providers, leveraging external expertise to drive targeted innovation and growth aligned with business needs, is a key strategy being employed by the sector.
The BFSI & Fintech Survey Report 2024 offers valuable insights for stakeholders seeking to navigate the rapidly evolving digital landscape and stay competitive in the banking, financial services, and insurance sectors. By understanding the current trends, challenges, and best practices, organizations can align their strategies and investments to deliver superior customer experiences, enhance operational efficiency, and ensure cybersecurity resilience.