Banks and Insurance Companies Grow with Technology

Factors Experienced in Banks and Insurance Companies in Digital Transformation

Today’s world is in the stage of rapid digitalization, and banking and insurance companies are among the sectors that benefit most effectively from this speed. As can be understood from the increase in the use of the internet and smartphones, the digitalization adventure, which is becoming more widespread every day, allows customers to advance their demands and expectations in different directions. Thanks to this differentiating progress, banking and insurance companies seem to be taking a step forward in this field to direct technology and lead the development of technology.

Digital transformation is one of the most critical issues for all sectors today. This new formation, which emerged with the invention of the computer in the middle of the 20th century and then accelerated with the creation and spread of the internet, computers, and mobile phones, succeeds in attracting many sectors. Sectors that cannot keep up with this change, on the other hand, lose speed and lag behind their competitors.

Digital transformation is a significant formation that affects all sectors of today’s economy. This technological trend, which is not satisfied with only one area and includes many sectors, enables a different transformation in every industry. This transformation facilitates the daily life of consumers and grows by changing and transforming at an incredible pace day by day in line with their wishes and needs. In this direction, banking and insurance companies are the most influential sector in which this digital transformation is experienced. Digital transformation; Since it is a transformation area given more importance by banks and insurance companies to offer advantages such as reducing costs, increasing efficiency, and perfecting the customer experience, it is the most sought–after transformation area.

This digital transformation, which affects the global economy, affects the banking sector and all other sectors. In addition, this rapid change experienced in this transformation adventure brings together a great competition area in the banking sector. In addition, it becomes an important issue to communicate the opportunities and risks that arise with this transformation to the customers in the most accurate way for the sector.

The banking sector is a sector company that is in one–on–one communication with the customer due to its formation. This sector, which prioritizes customer experience with this digital transformation, aims to make the interaction more efficient, short, and practical and stay one step ahead of other sector companies that cannot keep up with innovations. On the other hand, banks are subject to public inspection. In this case, it facilitates the adoption of digital transformation in the banking sector by consumers. In this way, the banking sector, which takes easy but firm steps in digital transformation, reaches a position where it can understand customer experience and needs in a short time. But what are the advantages of this digital transformation in this sector?

Positive Effects of Digital Transformation

  1. Space and time became more efficient.
  2. Payments etc. issues were moved to a reliable and transparent environment.
  3. The banking sector paves the way for customers to receive services more efficiently and flawlessly.
  4. People who do not have access to banking products and services can now easily access these opportunities.
  5. Instant access to the requested documents was provided, and the accuracy of the papers became controllable.

However, at this point, competition among banks in the sector has intensified thanks to the payment systems created by big technology companies such as Google, Microsoft, etc. Therefore, their numbers have increased with the digital transformation. In addition, new regulations and formations in cyberinfrastructure have enabled different problems to arise. In addition, this rapid transformation in the banking sector did not show itself only with the change in mobile phones and the internet. Therefore, aiming to create a new formation area with Blockchain, this sector seeks to provide a more reliable and transparent information flow.

In addition, “artificial intelligence technology,” which is on the agenda of the banking sector and is frequently seen today, is used intensively, especially in data-based sectors. However, the most crucial benefit of this technology for banks is that it facilitates the verification of customer identity with the face recognition system.

In this respect, the importance of digital transformation for banking and insurance companies is an undeniable fact. Furthermore, more robust and reliable interaction with customers will undoubtedly be achieved thanks to the time, space, and transparent communication gained thanks to this technology.

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