Digital Transformation In Fintech: Complete CFO's Guide

Digital Transformation In Fintech: Complete CFO’s Guide

Digital Transformation In Fintech: Complete CFO's Guide

The move to digital finance is quickly becoming an important business plan for long-term success. It is possible to be more efficient by moving away from old and inefficient paper-based business processes. Also, going digital with finance can improve the customer experience, help with compliance, make processes run more smoothly, and solve a number of fintech problems.

Here is a plan for success for CFOs who want to use digital tools in a smart way.

Table of Content

What exactly does “digital transformation” mean in finance?

Digital transformation is a strategy that uses both old and new technologies to make things run more smoothly, help people make better decisions, speed up work, and cut costs in financial services and institutions. In the wake of the pandemic, the goal of financial transformation is to meet customer standards while also making operations more efficient and profitable.

Exactly which technologies are used may change based on what the financial services organization wants. Fintech software development using AI, ML, blockchain, RPA, real-time data analytics, cloud-based computing, ERP, chatbots, the internet of things (IoT), and other technologies can be a part of the digital transformation journey.

But going digital in banking doesn’t mean you have to completely rethink the ecosystem and stop using all the tried-and-true methods. When bringing new, cutting-edge technologies into an organization, the focus should be on presenting digital tools in a way that improves the function of the finance team without ignoring the user experience at all. The choices made should fit the types of finance organizations that will be implementing the changes. This will make sure that everyone benefits, including finance leaders, important stakeholders, finance professionals, and customers.

Top business reasons why digital change is good for finance

Top business reasons why digital change is good for finance

Getting insurance

When insurance companies work with the financial sector, going digital can help them in many ways:

It’s easier to connect with current and potential customers and meet their needs when you use an omnichannel method to communication.

Automation lowers costs and improves the user experience at the same time.

Analytics can help with managing the supply chain and making financial reports. Also, it’s easy for insurers to get data from users that can be analyzed. This makes it easier to spot trends in the industry and quickly adjust to new conditions.

Retail banking

Digitalization is very good for the retail banking business. Customers today depend on their smartphones more and more, and the digital change of banking gives them chances to use their devices in new ways while making things easier for them. Adding APIs to apps that connect to outside service providers can make digital banking better. Adding mobile payments or “buy now, pay later” (BNPL) services also makes things more useful.

From a practical point of view, cloud computing can make things easier, make banks safer, and allow them to grow. It can also cut costs, which lets retail banks give better prices to their customers.

Investing and trading

The use of the cloud, automation, and APIs can all improve the efficiency of trading and investment for both the company and the customers. It’s easier for financial services companies to give their clients cutting-edge access to capital markets if they use the right frameworks, algorithms, and technologies for forecasts.

Management of wealth

The financial sector that deals with wealth management can also gain from going digital. Automation can make many jobs easier, which is good for both employees and customers. Analytics help people make smart choices, and cloud solutions can speed up service delivery without lowering security.

We have a lot of experience with digital change, which makes it easy to use cutting-edge solutions. This lets you take advantage of the newest technologies quickly and effectively.

Get in TouchSeven technologies that are changing the way banking works right now

There is no doubt that certain technologies are making waves when it comes to digital transformation and the finance role. Take a look at which ones are really shaking up the finance function and would be good places for companies that want to start digitalizing their finance functions.

Top 7 technologies that are changing the way banking is done digitally

Top 7 technologies that are changing the way banking is done digitally

1. AI and machine learning

Technologies like AI and ML can make deals much less likely to be fraudulent. The AI is very good at finding strange behavior, and the ML lets the system change over time, making sure it can find new threats as they appear. An AI and machine learning-based system that looks for fraudulent activity can even protect accounts right away when suspicious activity is seen, limiting or stopping possible loss.

2. Robotic handling of tasks

Robotic process automation (RPA) lets computers do tasks that need to be done over and over again. This way, financial workers can focus on tasks that really need their skills. In addition, RPA can improve the customer experience by letting them do certain jobs without having to talk to a worker. Process automation also makes it possible to copy data between systems that are linked. This can cut down on mistakes by getting rid of the need to enter data over and over again.

3. IoT

IoT devices can collect data in real time, which helps banks keep up with what their customers are doing. For instance, car sensors can give insurers information about how customers drive, which lets insurers change prices based on how customers behave. Smart ATMs can let you know right away if something is wrong or if there isn’t enough cash, which makes the experience better.

4. Using the cloud

Cloud computing has helped a lot of fields, including banking. Cloud solutions are very flexible and offer great scalability and agility. They also offer higher security in many situations. A lot of cloud service companies also offer ways to improve business continuity and recovery from disasters.

5. Big data and data analysis

Big data and analytics are very useful in the banking industry. Data scientists can use the information they collect to make predictions, which helps people figure out what they will need in the future. The study of trends can help banks find new business possibilities. By providing cutting-edge solutions for changing customer needs, banks can make more money. With analytics, you can also change how you sell to reach specific groups of people, which will help you get more customers.

6. The blockchain

The world of decentralized finance (DeFi) is changing, and a lot of standard banks are using blockchain to take advantage of some of its more interesting features. Both faster transfers and records that are kept very safely can make the customer experience better. In the same way, smart contracts that use blockchain can be very helpful.

7. Apps for phones

Customers today often choose to interact with their banks through their smartphones instead of other methods. Because of this, all kinds of financial institutions are making mobile apps that let customers access information, make transactions, and talk to customer care on the devices they prefer.

What problems you can expect as you try to pay for your digital change

There are some problems that come with making the switch to digital finances. Because of this, financial institutions need to get ready for the trip ahead and make sure they have the best chance of succeeding. In this short list, we look at some of the problems that might come up as the financial business goes digital.

Using old tools

One of the hardest parts of going digital is often getting rid of or combining old systems. Managing the change takes a lot of planning and preparation, as well as the right knowledge. The new IT solutions usually have a lot more features.

Safety online

Many updated technologies are safe when it comes to cybersecurity, but any update to a tech environment can make it less safe. As a part of going digital, financial institutions need to fully assess their new protection to make sure it’s strong enough.

Getting Along

Non-compliance is another problem that can happen when a tech environment is updated. Before they are fully put into place, financial institutions need to make sure that any solutions or systems they are thinking about meet all the legal requirements for the business.

How to Adapt

When a financial firm goes digital, it means it is going through a big change. Companies usually have to teach their workers new skills or improve the ones they already have to make sure they can use the new systems, solutions, or processes. Process updates are also necessary to make sure that any established methods are changed to reflect the digital updates.

Key advantages of going digital with finances

The digital transformation of corporate finance is a big job, but financial companies that do it will benefit in many ways. Here are some good things about going digital in accounting and business.

Better service for customers

Customers today are very tech-savvy and have very clear ideas about how they want their experience to go. By accepting that finance is becoming more digital, institutions are better able to meet or beat those standards. They can provide the benefits and services that today’s picky customers want, which makes it easier to keep customers and get new ones.

Greater speed in operations

Making operations more efficient is one of the main reasons why the finance business is going digital. By going digital, financial institutions can improve tracking, simplify processes, cut down on work, and do a lot more.

More money coming in

Changing to digital can boost profits in a number of ways. By making their operations more efficient, financial companies are more productive, which means they have more chances to make money. Cutting down on trash can lower costs while adding services and features that bring in new customers and increase sales. Because of this, most financial institutions see a good return on their investment (ROI) after going digital.

Work that is flexible

Banks can be more flexible by using cloud technologies, automating tasks, and other digital changes. For example, cloud computing is more flexible than in-house options when it comes to adding more computers. Automation lets computers do boring jobs so that people can work on things that really need human touch.

Making decisions based on data

With the help of AI and data analytics, financial companies can use the power of their data to make better decisions. They can look at patterns and trends to find new possibilities. This lets them take advantage of changing customer tastes and stay ahead of the competition.

What a CFO needs to do to help finance and accounting go digital

What a CFO needs to do to help finance and accounting go digital

Write down your aims.

At the heart of a plan for digital transformation in finance are clear goals. Find out what your bank wants to do and what parts of the business you want to improve. This will help you set clear goals.

Look for possible problems.

There will be problems and roadblocks along the way for even a digitalization of financial services that works out in the end. Find the possible problems early on in the planning process. This will give you time to come up with answers before you move forward.

Make a plan for the future.

It’s time to make a written strategic plan once you know what your goals are and what might get in the way. Include a plan for how you think the digital transformation will happen, a list of the skills you’ll need, and a starting schedule. Also, don’t forget to think about your cash.

Pick your friends carefully.

Choose your relationships carefully, whether you have a team in-house that can lead the digital transformation or you need a strategic partner to take care of everything. Digital transformations need a lot of knowledge, so it’s best to work with partners who have a lot of experience and a good name. This will ensure you have the best experience possible.

Begin with Appic Softwares Startups & SMBs.

Changing finance to be more digital is a big job, but it’s a lot easier with the right partner. Appic Softwares Startups & SMBs has a lot of experience with turning banking into a digital business. If you’re ready to begin your journey, we can help you every step of the way, put you in touch with talented people, and bring you the tools you need to succeed.

Appic Softwares also offers ongoing support to keep your app in line with security standards and changes in the industry. Customers who choose Appic Softwares will get a strategic partner that is dedicated to making a better financial app that meets all the strict requirements.

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