The financial services industry is an important part of the global economy as it facilitates funds transfer and drives global trade. The companies in the financial services industry offer finance and banking services to different customer segments right from individuals, small and medium enterprises to multi-national organizations. The financial services providers are involved in a range of activities such as insurance, investment and portfolio management, banking services, securities and commodity trading, and insurance among others. The digitalization wave has transformed the BFSI industry and eliminated processes that necessitate paper money and human interactions. However, companies face several challenges that have to be addressed so as to drive profitability.
Challenge 1: Enhancing Customer Service and Demands
BFSI organizations are struggling to meet customer demands and comply with government authorities. Today, every company irrespective of the industry they operate in must enhance the customer experience by improving their services. However, this sector falters in offering flawless, innovative services that meet the customers’ needs and preferences.
Challenge 2: Stringent Regulatory Compliance
Another major challenge for the companies in the financial sector is the increasingly stringent regulatory compliances. The nature of the business is highly sensitive in the BFSI industry, which demands them to ensure high-level data security. Why do financial companies need to comply with the regulatory authorities? Because they deal with sensitive customer information that cannot be compromised and the cost of a profile breach and non-compliance can negatively impact the bottom line of companies.
Challenge 3: The Digitalization Hurdle
As a matter of fact, the financial sector is trying its best to adapt its processes and operation to technological advancement but somehow can’t wrap its hands around it. With the sudden increase in competition in the BFSI sector and increasing consumer demands, the companies in the financial services industry have to innovate, improve their go-to-market strategy, and develop brand and product differentiation strategies.
