Covid-19 has undoubtedly ransacked the world economy and disrupted even the proven and dynamic supply chain networks.  The most interesting aspect of it is to know that at the same time, it has been a great catalyst towards digitization in banking. Banking already had adopted digitization in terms of its daily operations owing to the persistent efforts of National Payment Corporation of India. With the increasing need for minimizing touchpoints, increasing social distancing, and focusing on cashless payments, banking has undergone a revolutionary metamorphosis with payment ecosystem bringing forth Electronic toll collection, UPI, and BBP (Bharat Bill Pay). 

The Transformation

The pandemic transformed the prevalent social, political and economic systems. With the proliferative power of internet seeping into the daily lives of people, the financial transactions between the bank and its customer have taken a major shift. The pandemic forced people to change their behaviour thereby, necessitating the need for banks to upgrade their mobile applications in terms of services offered and customer operations.

Here some of the key ways in which banks have transformed themselves digitally.

1. Banks have heavily adopted security systems powered by Artificial Intelligence to safeguard the critical data of its customers.

Covid-19 has necessitated the need for the improved digitized process to curb fraudulent cases and therefore, it has adopted AI-based early warning solutions. These solutions have innumerable variables that assess client interactions significantly minimizing the chances of credit card frauds specifically. This preventive solution has enabled to considerably minimize frauds that were on the rise due to an enhancement in cashless transactions during Covid-19.

2. Banks have adopted data analytics solutions to be able to adhere to legal requirements and compliances applicable to digital operations and transactions.

Anti-money laundering and conventional KYC checks needed a digitised process to minimize risk in a social distancing norm. The adoption of data analytics has enabled the banks to mitigate operational risks with a firmer and powerful review and transactional tools. Here banks adopted data analytics solutions to identify and translate complex patterns points and translate them into critical insights. Data analytics has helped the banks to remain compliant with legal norms and regulations in terms of all possible transactions. Those  in the banking sector are constantly face the challenge to remain abreast of all the technological advancements that can boost the banking operations. Also, it is critical to understand their level of compliance with prevalent banking norms and regulations. The best way to understand the scenario and leverage the opportunity is by exploring  courses like  Executive Programme for Banking and Financial Sector where one can get greater understanding of  BIG DATA, AI, Machine Learning and Cyber Security in context of pandemic and similar situations. 

3. Banks have adopted Optical Character Recognition architecture to automate tedious processes and usher in operational efficiency. 

The prevalent and the traditional KYC process called for manual intervention in collecting documents, submission of documents, scanning & uploading of the docs in the BPM system. Post this there was manual verification, data entry and validation process. With Covid-19 setting in, the banks opted for a robust data screening procedure that was immaculate, speedy and boosted automation. The adoption of the OCR brought the entire classification process to speed by recognising data points from documents and converting them into digital characters. This enabled the banks to make the data available offline to ensure business continuity even during the lockdown and eliminate error in the entire KYC process.  

The paradigm change that pandemic has ushered in the BFSI sector is phenomenal and this is where digitization has completely supported human operations and made it impeccable.