Digital transformation: A required change and a new operating model in the BFSI industry

Digital Transformation requires a cultural change in the organization. Its adoption and a new way of delivering the service have meant reskilling the workforce and modifying the methodology of work in radically different ways

Digital transformation is not an incremental game. A few automation projects do not make digital transformation. It has to have a sizable customer impact and provide scalable economies and efficiencies. The pandemic has put the BFSI industry in the eye of the digitalization and digital transformation storm. Also what took years is now being completed in months, said Sandeep Phanasgaonkar, Chief Consultant for CIO Advisory & Digital Transformation at AgileITvantages in an exclusive interview with CIO News.

He said that BFSI leaders are doing projects with large, measurable impact. Use of AI/ML, Intelligent/Hyper Automation, Cloud and the mobile has meant thinking radically different while coming up with solutions. Adoption of Agile and DevSecOps has increased manifold the rapid development and deployment of changes. Thinking has to change, vision has to change and scale and customer benefits are the ultimate deliverables.

Digital Transformation also requires a cultural change in the organization. Its adoption and a new way of delivering the service have meant reskilling the workforce and modifying the methodology of work in radically different ways, he added.

Speaking about the importance of digital transformation in the BFSI industry, Phanasgaonkar said, “The starter’s gun has been fired. Everybody is racing down the track. If you don’t sprint to the milestone, the competition will eat your lunch”. There is a lot of learning and experience to be acquired in the process of making digital transformation successful. It’s the only way customers and other members of the ecosystem can utilise the BFSI products and services despite the physical constraints of the pandemic and lockdown pressures. BFSI is also the vital grease for the economy and generates confidence that the economy is still financially stable and rock solid despite the challenges of the pandemic.

Adding his thoughts on data analytics, he said that data analytics allows you to study historical trends and make course corrections in the conduct of the business. The pandemic was a brand new situation and there was no historical data for future planning. With the passage of time, more data is available and vital metrics of BFSI performance point out how the industry should scale their performance and counter the threats and challenges of the pandemic.

For creating a customer-centric approach, digital allows real time measurement of customer responsiveness. It therefore allows you to make changes online, streamline bottlenecks in workflows online and scale up resources especially for cloud based operating models to improve performance and service delivery to the customer, he added.

Phanasgaonkar spoke about the central elements of digital transformation in the BFSI industry by saying that there should be a larger vision of proposed transformation. The modules/subsystems of digital transformation are to be cast in a framework that integrates seamlessly into the ecosystem. The digital transformation model has to be scalable and it should happen quickly. Organizations should be able to pivot for cultural change arising from Digital Transformation and the new operating and services normal. It should be a rapid change and an agile operating model that is responsive to fast changing customer and market demands.

Also read: Digital Transformation: The imperative speed in organizations across all industries

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