Digital transformation occurs largely within the traditional boundaries of a brand or an industry. For example, when a bank considers digital transformation, they usually limit their thinking to their current business and apply digital technologies to aspects. Such as account opening, loan applications, payments, or other traditional banking functions. We do. In other words, they focus more on improving what they have always done rather than imagining what they have done. Digitalization Is Bigger Than You Think AI And Financial Services.
While this can be valuable to a bank and its customers, it falls short of its full opportunity. Because digital transformation transforms. Actions, decisions, money, and intelligence into data, traditional assumptions that evaporate.
Think about it this way.
In our personal and professional lives before the information age, we go to a specific place to do a specific activity. For example, if we need to do something with insurance. we will see an insurance agent. If we want to buy something, we will go to that product store. If we need public services, we will go to the appropriate government offices to get them.
After the emergence of the Internet, many of these services moved to websites. Where these same services could be performed remotely, but within the same business. In other words, the trend toward a digital experience has been within traditional limits (were to a large extent). Where a government website continues to provide only government services, and insurance companies only provide insurance services. Digitalization Is Bigger Than You Think AI And Financial Services.
Moving to overall customer digital experiences
We are now at the edge of the next major shift, which is characterized. By blending these functions across functional silos and integrating them into overall customer experiences. These customers can be both end consumers and business buyers. Increasingly they do not look to specific industries to help them; They expect, rather, that digital services will be combined to help achieve the desired outcome. That’s the shift, in short.
Therefore, no industry enjoys unique ownership of the customer experience. We learned from Uber and Lyft that making rides easier. Moreover, including an element of trust and simplifying payments — quickly erased the expectation. That “there are yellow cars that give me rides.” But this “small change” is where we are headed.
Opportunities for financial services and other industries through Digital ways.
Industries are still defined in terms of the SIC code first established in 1937. This classification helps compile data on employment and the economy. Where should our bakery owner expect this type of assistance? A better question might be: would the owner of the functional- banking, retail, transportation, insurance, manufacturing, telecommunications, etc. . These sectors have the right data to be able to answer these questions?
It begins to become clear – financial institutions in particular have a greater opportunity to snatch up these value-added services and position their brands as sources of massive intelligence.
To make our approach a bit broader, opportunities for businesses in all industries – from shipping to banking to manufacturing – are two things:
First, they need to determine how they can participate and enhance customer experiences created and curated by others.
Second, they need to find ways to develop intelligence using AI – that they can monetize the experiences of these customers.
For example, will the Airbnb host benefit from the bank’s insights concerning its property expenses, pricing, and budget? Will they benefit from temporary insurance coverage? Will they pay for these services? Very likely they will.
Orchestrating Customer Experience: Digital
The more you define yourself the what you have always done for your customers and fans. Rather than the more your business, the more your business will grow. And the more vulnerable to disintegration. Organizations in financial services are concerned about commodification. But it is a threat to every company in every industry.
While banking is one of our oldest industries (the first mortgage was given in the eleventh century), commodification is knocking at the doors of every company. The only way to succeed is to deliver new types of value, in new ways, by orchestrating new types of customer experiences.
Enabling innovation is Microsoft’s core mission:
We understand that change can be challenging. But we also believe that it holds incredible promise. Our approach is to leverage technology in novel ways. Which is enabling business agility with tools that will define the future of customer interaction.
As your trusted technology partner, we provide both industry know-how and enterprise-grade solutions. And wherever you are on your digital transformation roadmap, we can help you.