The next wave of digital transformation for banking & financial services: Data, AI, and innovation

In the blink of an eye, new technology— generative AI specifically—has reframed how we think about the future of business. Digital workers are grappling to understand AI and, more importantly, leverage it.

Banking, financial services, and insurance (BFSI) organizations are no different.

The pandemic acted as a catalyst for digital transformation across the BFSI industry, forcing established institutions to digitize their operations and services to remain competitive (and operational). Of course, there’s no real end point for digital transformation. The rise of AI proves this.

While digital transformation in the early 2020s helped meet consumer expectations around convenience, today’s challenge is to harness big data to fuel AI effectively. In a world where customers’ expectations are always increasing, AI-powered digital experiences will not just be a nice-to-have but a necessary technology.

This is an exciting moment for the BFSI world, which stands to benefit from AI more than most industries. With a wealth of (often highly personal) data spanning years or decades, BFSI companies can know their customers at an extremely granular level. Whether organizations can use this data and turn it into personalized experiences will set organizations apart in the future.

However, the nature of the BFSI industry poses challenges to fully embracing AI and digital transformation. Compliance and security requirements, complex and rigid structures, and dated technology result in high barriers to entry. Many established institutions lack the agility needed to adapt quickly to technological advancements.

BFSI organizations are at a critical juncture. To thrive in the future, they must grasp the next wave of digital transformation—data, AI, innovation, and personalization.