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Digitalization in the financial industry
The financial sector, especially insurance companies and banks, is one of the main pillars of the Swiss economy and accounts for an average of 10% of Switzerland's gross domestic product. In Germany, the share is around 3.8 %. Corona acted as an innovation driver in the banking and financial sector. Digital strategies have moved in, especially in the rather stolid banking sector, because the usage behavior of bank customers is becoming increasingly mobile; due to demographics in Germany, Austria and Switzerland, branches will no longer play a major role in the foreseeable future. The new business of neo-banks and FinTechs is growing, as are online payment service providers.
To digitize jobs sustainably, the industry must address these issues: Big Data, cloud solutions, artificial intelligence (AI), data security and process automation (RPA). in addition to the financial world, the administration industry, the real estate industry and the raw materials sector must also face up to these tasks.
Automated processes that save time and costs and enable greater efficiency play an important role here. For example, chatbots or robo-advisors can be used in customer communication and asset management. Digital solutions such as artificial intelligence can also be used in risk management to identify and minimize risks at an early stage.
Possible applications of digitization in the financial industry
Digitization has also greatly influenced and changed the financial industry in recent years. Especially in the areas of banking, insurance and investment management, there are numerous possible applications for digital technologies.
in the following, we would like to give you an overview of the possible applications of digitization in the financial industry:
The use of blockchain can make transactions faster, more secure and more transparent. Blockchain technology can be used to fight fraud and corruption and increase transparency in the financial industry. Furthermore, for example, transfers can be carried out faster and more securely, and there are also opportunities for using blockchain in the area of securities settlement.
In the insurance industry, digital technologies can help shorten claims processing times and improve customer communication. For example, mobile apps can be used to report claims and retrieve information about insurance coverage.
Smart contracts based on the blockchain can be executed automatically, speeding up processes such as the settlement of insurance claims.
By automating simple queries and providing quick answers to frequently asked questions, financial companies can make their customer service more efficient and reduce waiting times for customers. At the same time, chatbots can also provide personalized offers, boosting sales of financial products.
All in all, digitalization also offers numerous opportunities in the financial industry to optimize processes, improve customer relationships and open up new business areas. To be successful, however, it is crucial to approach digitization strategically and to always keep the needs of customers in mind. In doing so, it is important to take into account data protection and regulatory requirements and to ensure appropriate IT security.