The kind of service, where money is being transacted or managed in these financial firms – banks, fund management, credit unions, credit card, accounting consultancy, insurance, investments, stock brokerages, etc., is referred to as financial service. From these financial service providers, the banks take the most toll in providing financial services, such as managing funds through deposit and withdrawal of money, providing cashless forms of payments for bills, releasing loans for business or property purchases, fund transfers, etc.
The financial service industry has never been the same when digital technology, through internet service, has impacted the world, such that the industry has no option but to forge with it and use the technology to provide better and efficient business performance, which should be taken as a positive transformation of providing financial services. The future is expected to be increasingly driven by digital technology such that the banking and other financial service providers are embracing this shift towards a digital transformation of services in their institution. In the next decade, financial analysts are seeing the collaboration of digital and IT processes to introduce a major transformation in the banking system, which would be introducing artificial intelligence and robotics as major components in their services. Knowing that customer service in the financial service industry has so many advantageous options to take in using digital and IT processing system, one of the most relevant and significant roles that banks and other financial institutions will be embarking on is re-defining their customer service system to customize it based on customer preferences, demographics, and lifestyle changes in order to increase efficiency in performance.
In an increasing competitive banking environment, the banks, which have integrated digital technology and IT systems, have seen the growth and retention of customers all due to a better delivery of service, thus providing a better customer experience. The success of internalizing digital in the bank’s operating systems have managed to streamline the standard operations, such that savings are seen in time and money usually spent for these, while employees have become more efficient in terms of reducing errors in their usual workload. The digital transformation of banks have allowed them to further explore other available marketing automation and brand management platforms, which will definitely be helpful in their way of extending their brand and customer service. There is no doubt about it that digital transformation in banks has significantly helped them increase sales and profits, as well as their market value. In addition, banks are becoming more competitive, now that they are into digital, in the sense that they use the technology to speed up developments in other relevant areas, such as new products and services, and in promotions. Because of embracing digital technology, banks are now into a culture that continuously encourages creativity and innovation just to deliver the best customer service to their customers.