The Banking, Financial Services, and Insurance (BFSI) sector
is driven by factors such as the increasing working population, growing
disposable income, evolving consumer behavior, etc. Moreover, many BFSI firms
are investing in big data analytics capabilities in order to develop client
insights. Big data solutions are being adopted to provide insights regarding
consumer demographics, product penetration, and the effectiveness of training
programs. These technologies are being used to assess existing and potential
consumers' willingness to buy various products and services provided by BFSI
firms. BFSI includes sectors such as core banking, retail, private, corporate,
investment, insurance, and cards, etc.
Everything around us is being reinvented by technology. The
banking and financial sector is also aligning itself with the advent of digital
forces, which is resulting in the development of new and efficient methods of
analyzing data. This trend is mostly the result of increased competitiveness in
the sector and a growing desire for a simpler and quick business financing
process. Consumers' lives are made easier by digital banking. People are
increasingly enjoying the convenience of controlling all of their accounts in
one location, setting up automatic payments, or making deposits at any time and
from any location, without queueing in a bank. Moreover, machine learning and
cognitive analytics are the new-age tools used in this sector, which help with
information discovery and data-driven decision-making across all industries.
These technologies put data first, processing and analyzing it to get useful
insights from vast, complicated databases.
Currently, the BFSI sector is witnessing pioneering trends
in banking and finance, ranging from omnichannel banking to artificial
intelligence and blockchain-powered financial services, all with the aim of
revolutionizing BFSI mechanisms by putting customers at the center of their
current and future strategies. Also, some of the major factors such as rising
use of cross-border payments, growing bank investment in blockchain-based
solutions, and other factors such as growing demand from emerging nations, as well
as higher transaction speed, scalability, smart contracts, and lower processing
costs, are driving the rise of blockchain in this market. Therefore, major
firms in the BFSI sector around the world are exhibiting great interest in
experimenting with blockchain technology.