As 2020 draws near, what are the new outlooks for digital strategy in financial services? Johnson Wu, a director in the Wistron ITS Taiwan Hong Kong Business Group, says that in 2020, Taiwan’s financial sector will focus more on digital optimization and digital business transformation. This will bring more convenient and diverse financial consumer experiences.
Digital Optimization and Digital Business Transformation
Mr. Wu says that most financial holding institutions are making the digitalization of financial services a priority in 2020. Some financial clients are focusing their reform efforts on the business development of digital optimization. They are gradually improving and optimizing existing business models, products, processes and customer experiences; for example, by building enterprise data lakes, unified middle-end management systems and data management platforms. However each project is transformed, the overall value they bring do not change.
Other clients are choosing the path of digital business transformation, adopting new directions for business operation and new IT functionalities, such as VTM, robo-advisors, and so on. Some are even incorporating unmanned banking, digital banking and fully-online banking services, in order to build a strategic foundation that will allow their businesses to develop innovative, competitive and stable digital business models.
From Digital Banking to Fully-online Banking
The main difference digital banks have with traditional banks is that they do not use physical passbooks. All financials services such as time deposits, investment funds and loans are directly available online at any time, with online customer support always on standby to resolve issues. Digital banks may sometimes open physical “experience” branches, but fully-online banks do not establish any physical presence and conduct all business via the internet.
In 2020, the financial sector is projected to continue replacing the physical with the digital; everything from opening an account, loans, wealth management to customer service will be offered in diverse and digitalized ways. Technologies such as remote biometric identification, AI-based loan approval, and robo-advisors for investments and financial management are all becoming core technologies that the financial sector will use to offer services in the future.
Building a Brand New Financial Experience with Big Data and AI
Digital transformation is about using technology to offer new service experiences. While AI and big data technologies are well-suited for building relevant, localized digital services, the biggest challenges lie in the difficulty of finding adequate talents and time-consuming development processes. With our wide range of tech talent, Wistron ITS will continue to work with clients to further their digital transformation, and reshape the digital financial landscape for a new era in 2020 together.