In 2011, Marc Andreessen, developer of Netscape Navigator and founder of Andreessen Horowitz, proclaimed “Software is eating the world”
Jay Kreps, CEO, and co-founder of Confluent, revised that assertion by stating “Every Company is Becoming Software”
So, it comes as no surprise that even a staid sector like banking, financial services, and insurance (BFSI) is undergoing digital transformation.
There are multitude of factors that are driving this transformation: some external and some internal.
One of the key drivers is the mass adoption of smartphone worldwide.
India has been no exception to this phenomenon.
Even though mobile network was introduced much later that fixed landline network, mobile penetration far outstrips fixed line penetration in India today.
Adoption of mobile internet facilitated the rise of mobile money accounts and transactions.
BFSI sector came to an understanding that they have an excellent opportunity to “bank the unbanked” and serve entirely new segments that could not be served earlier. This was coupled with the awareness that existing products, process, and channels will not suffice the need to these newer customers.
Digital Transformation, therefore, became the imperative
This was strongly realised during COVID19 related global pandemic, when entire nations were locked down and digital banking channels were primarily responsible to keep the financial systems vibrant.
Companies are leveraging the vast data that they have accumulated over the years to transform their offerings. They are using Big Data, AI/ML, cloud-native technologies, etc. identify the untapped market segments and develop innovative products and services to target them.
This has led to a Cambrian explosion of innovative products and services in this sector.
Examples of Digital Transformation in BFSI Sector