What is the importance of digital transformation of financial services in promoting financial inclusion?
Digital transformation is facilitating access to credit and financial services, helping to lift people out of extreme poverty. Financial inclusion creates opportunities for more people to set up their own businesses and earn a steady income. Institutions that operate in this field not only provide financial opportunities but also educate people on how to manage credit and develop their own business.
For the digital transformation of service delivery channels to be successful, service providers must operate close to potential markets. Financial institutions must make a paradigm shift to increase the acceptance and confidence of their internal team. As I mentioned before, building a scalable infrastructure is critical for the future. At the same time, organizations must maintain their mobility and competitive advantages within the markets.
Benefits of Digital Transformation
- Increase internal collaboration: If a digital transformation project is large enough, it can touch the entire organization and better foster internal collaboration. The best typical examples of improving document management processes are the internal corporate networks used. It can open up opportunities for discussion among team workers who have not had any contact.
- Process optimization: Every business goes through a series of recurring processes. It may be most commonly associated with manufacturing, marketing, or accounting. Digital transformation provides an opportunity to hone competencies to improve operations. And of course, with continuous improvement, operating models improve and business can give positive results. Thus, it will improve the process of any part of the business, and the beauty of digital transformation is that it targets a few parts of the business, or the entire organization at one time.
- Increased efficiency: Efficiency is the corollary of well-developed processes. And by using the unparalleled power of modern technology, workflows can become faster, smoother and repeatable. Employees spend less time on regular tasks so they can focus on ideas and innovations. Clients also benefit from increased efficiency in their dealings with organizations.
- Creating new business models: The digital revolution has opened up many new business models. With improvements in technology, old business models can be stolen and appropriated in no time.