Financial services are fast expanding and adapting their digital business models as a result of the COVID-19 pandemic and the new conditions that are resulting from it. The result has been that banks’ digital transformation objectives have had to be pushed back at times. This presented both challenges and opportunities in the financial services sector, where banks, working closely with the government, were required to: execute the provision of a large number of credit facilities; adapt offerings in response to changing client needs and behavior; and ensure practical Flexcube implementation, and effective measures to maintain the stability of operations and services in the face of these challenges and opportunities.
During the financial crisis, banks’ customers altered their behavior suddenly and often by force, reflecting adaptations to limits and health and safety standards, among other things. The digital opening of new partnerships (which increased by more than 70%), the registration and use of mobile pay apps (which increased by more than 80%), and the use of contactless payments all saw significant increases (up to over 30 percent ). These increases were linked to a decrease in the number of physical client encounters that took place.
Flexcube implementation
Meanwhile, firms’ organizational structures had to be digitally updated to accommodate remote working, communication, and client service. The financial services industry faced a significant operational challenge when it came to rapidly increase the number of remote working arrangements, with the majority of employees in Switzerland working from home. This presented a significant operational challenge because it required maintaining a consistent level of client service.
This knowledge has assisted firms in recognizing the trans formative potential of digital channels and digital operational setups, as well as the relevance of new value generation from data and analytics in their respective industries and markets. As specific examples, the following are provided from a government viewpoint to demonstrate how digital technologies, data, and analytics may leveraged to generate value in financial sector firms.
Protect clients by identifying conspicuous or fraudulent transactions
With artificial intelligence (AI) combined with real-time data analytics as an early warning system, organizations may successfully deploy fraud prevention for credit card transactions. If there is suspicion that a credit card transaction is fraudulent, a digital solution that analyzes a range of criteria immediately requests input from the customer in order to determine its legality. Through the use of machine learning, adaptive analytics can be applied to data models that are constantly being updated with client input. Fraud-related losses are reduced by a large margin as a result. As part of COVID-19, the practical application and scale of preventive artificial intelligence (AI) were especially essential, with relative fraud prevention activity levels increasing by more than 40% when compared with levels prior to COVID-19.
Meet regulatory and legal requirements
Companies may improve their efficiency by using data analysis to satisfy legal and regulatory obligations more effectively. Deviations in client and transaction characteristics are detect via the application of machine learning. AML/KYC checks, for example, are more challenging to handle for clients with big and complicated requirements. However, comprehensive client and transaction review tools may help mitigate this risk to a significant degree. To uncover difficulties, these technologies use intelligent analytics while enhancing interaction and visualization to turn data into actionable insights. This enables firms to detect dangers with greater speed and accuracy, and it facilitates the dissemination of complicated data patterns to a broader audience via better visualization.
Boost operational efficiency
Flexcube data analysis, when utilized in conjunction with automation, has the potential to increase the efficiency with which financial services are provided to customers. Year after year, a considerable number of documentation packages for client meetings created across the financial center. It is feasible to produce client documentation from management tools. And archives on a regular basis by combining a unique data element with robotics process automation. Increased efficiency in managing large quantities is made possible by the system’s scalability.
The entire potential of robots has shown under the most extreme settings. Small and medium-sized enterprises (SMEs) in the country are facing significant issues as a result of the epidemic. Which has prompted banks, in partnership with the government. To immediately launch a funding program for such businesses. In order to deliver much-needed cash to small. And medium-sized enterprises (SMEs) as quickly as possible Among other things, at UBS, we deployed six credit robots. That assisted our task force in processing credit facility requests. With this assistance, more than 24,000 applications handled in a 24-hour working mode. Representing up to 100 virtual employees at times.
Flexcube data analysis
Additionally, data filtering and utilization from physical incoming mail may help to increase operational efficiency. Mail receive opened, scanned. And handled using Optical Character Recognition (OCR), which allows for intelligent categorization of the mail along. With associated meta-data and transmission to a virtual mailbox. A high acceptance rate and a very high digitalization rate for documents have seen once. The service made available to the public (up to 90 percent ). Due to the digitization of physical mail and the subsequent ability to handle mail under remote working circumstances. For over 13,000 UBS employees working from home. Physical distance restrictions became even more efficient. Since September 2019, around 350,000 documents have processed, representing. The equivalent of 1 million pages or 5 tonnes of paper.
Serve clients better through data and analytics.
American banks have made significant expenditures in recent years in order to add value to their customers’ portfolios via the use of sophisticated analysis. And the provision of specialized products, investments, and advisory services. They may develop their goods even further by examining customer feedback in order to improve. The whole experience via higher-quality interactions. Digital solutions, as well as data and analytics, may utilized to improve the relevance and efficiency of customer interactions. As well as to better adapt financial services to the requirements of individual clients.
Follow sound data principles.
A growing emphasis on the use of data and analytics within the finance industry implies. That ethical guidelines for the use of data. Which go beyond current laws and regulations, have become more critical. A number of top financial services companies, including UBS. Have accepted the World Economic Forum’s standards for the use of data, which published in 2018. A large number of financial businesses in Switzerland joined together to celebrate the launch of the Swiss Digital Initiative (SDI), which aims to protect ethical norms in the digital era.
Conclusion:
Global and diversified organizations must show the relevance of Oracle Flexcube data governance and ethical values by integrating them into their DNA. Meanwhile, we urge other businesses to act as spokesmen for these values both inside. And outside of the financial services sector.