Technology and innovation in banking is a way to meet new and existing requirements via the application of digital solutions in an existing or articulated market. Nowadays, innovative technology is considered as one of the most important tools that can affect the economic and banking sector. It is only a matter of time that digital progress eventually destroys old ideals that are still used to develop and deliver services and will be replaced by new and operations-centric practices. Thus, in the highly competitive banking environment, specifically, internal banking operation, the adoption of new tech and innovation has never
Banking in Pakistan
In 75 years, banking in Pakistan has come a long way. It has battled nationalization to privatization and everything in between. However, so far, we have been far behind in updating core banking operations and systems. The reason for this is that the technology used in the banking sector is the result of years of innovation to ONLY meet the customer’s immediate needs that too needs some work. On the other hand, this has resulted in silo-ed operations being used for various banking services; like, transactions, loan accounts, internet banking etc. These silo-ed systems are not ideal for the digital age where technology-based Fin-Tech startups are giving competition to not just banking but to the internal operations of the banks as well. Our systems unfortunately are not forward on core operations of a bank’s substantial workforce.
The biggest external impact on businesses in the 21st century has been none other than Covid-19. The pandemic has had huge ramifications on the banking sector across the world – Pakistan is no exception. It has exposed digital shortcomings and lack of innovation across the industry for example:
- Impacted workflow
- Managing customer expectations
- Lack of streamlining of internal systems
Why Operation Innovation?
Well, apart from the fact that it’s high time we “get with the times”, banks can roll out effortless digital passages by automating their workflows and removing any manual intervention. Moreover, as a large chunk of a bank’s annual budget is consumed by operations, a digital makeover would provide a much-needed respite. Operational innovation offers other advantages as well:
- It provides the capacity to increase revenues.
- Growth in revenue is possible by providing better and differentiated products and services for customers.
- The operational costs that a bank will save because of tech intervention can be reapplied to digital innovation
How to Rise to the Challenge
The State Bank of Pakistan has introduced a framework for banks to set up complete digital accounts that will provide all banking services from opening a new account to mobile banking to deposit and lending. Initiatives like these will not only force our banks to adopt a sturdy technological infrastructure for its core operations but will also drive them to enforce effective workflow strategies and data management.
Technological innovation and automation Initiatives like these will prove pivotal in aiding banks to seamlessly implement end-to-end digital journeys but the right tools will help employees to readily assist customers on the best financial products and will provide a more tailored and appealing platform through which business can operate. A tool by Salesflo called, “Salesflo Engage” can help executives do just that and then some. This tool is designed to create better workflows and optimise operations and it was created keeping digitising salesforce in mind. All in all, managers must make use of such tools to accommodate their customers and deliver operational innovation.