How is informatics affecting banking and financial institutions?

Informatics is transforming and looking to enhace / improve customer and employee experience in banking and financial insitutions.

Explanation:

Nowadays, traditional banking institutions are struggling hard to stay competitive. New operating models (such as Fintech, Insurtech and 100% Digital Banks) are putting high pressure to institutions, hence a customer-centric + frictionless approach is each time more required. Banking and financial institutions need to define a new process, customer oriented architecture, capable of aligning back (administrative, monotonous work), middle (operations and IT processes) and front office (client-facing) activities to develop a "Connected enterprise". In this sense, banks and financial institutions will have to start embracing the following aspects:

1) Strengthen internal processes: besides document mangement and BPM (Business Process Management) tools, clients and employees will be expecting to replace the execution of routine, repetitive and non-value added actitivies (e.g. account reconciliations) by the use of robots (programmed software developed to imitate human behavior). This is called RPA (Robotics Process Automation), the first instance of robotic intelligence.

2) Human Resource Re-skiling: informatics will require each and every worker to reinforce learning skills in order to adopt new technologies. Training and development will be necessary, as well as good Change Management and Communications efforts. This will have to be adopted, no matter what, hence true technology adoption starts from the own employees.

3) Customer experience: processes should be less transactional and effortless for each client. Brick and mortar subsidiaries have started to dissapear, leaving more space for apps, intelligent branches and other developments. Customers should feel willigness to develop transaction in a smooth and fast way. The use of web, mobile and omnichannel banking will ease how customers relate with financial institutions. Now, digital marketing and social media will be used as an additional channel for the customer to be more connected.

4) Data strategy: informatics will be key to order, clean and sanitize the use of data. Database management should consider data tracking (being able to see where was the piece of data obtained and how can it be used) and automation, to identify patters of customer behavior and enhance the way the institution targets its offering.

The use of Big Data, Analytics, Artificial Intelligence would require business strategy revamping and senior management involvement. This will be key for informatics to make a radical change to financial institutions operating models.

Informatics is one of the essential software for both financial and banking firms. Both the institution handle various data, data gathered from various place which needs to be collated and sent for further analysis, quite a lot of report preparation, handling with huge calculations, etc.

These can be done by human but there might be errors, delay in completing tasks and also lots of human power required to do so. Informatics helps to collate data collected, generate efficient reports and support in all banking and financial needs.

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