Ease of use, personalization & consistent engagement promotes digital loyalty

Murari Lal, Head - Digital Initiatives, Shivalik Small Finance Bank, delves into platforms, loyalty and Al:

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Smriti Pandey: The strategy at many financial organizations is shifting towards platform adoption. Briefly describe 2 upsides and 2 downsides associated with platforms that you have experienced in the recent past.

Murari Lal: It is true that financial organizations are increasingly shifting their approach towards adopting platform as part of their digital transformation strategies. Today platforms are capable of enabling banks to integrate quickly on various services, streamline operations, and offer a more seamless and personalized customer experience. By adopting platforms, financial institutions can partner with third-party service providers, fintechs, and biotechs to innovate faster, scaling their offerings in areas like digital payments, digital onboarding, lending, and wealth management.

This shift is driven by the need for quick go to market, cost efficiency, enhanced customer engagement, and the ability to use data more effectively for personalized services. Additionally, platforms allow for faster onboarding of new technologies like AI, which are transforming how financial services are delivered today.

However, this shift comes with its challenges too. Banks must navigate to the cybersecurity risks, complex regulatory environments, and the integration of legacy systems. Despite these challenges, the platform approach is positioning financial organizations to stay competitive in a rapidly evolving market, making it a key focus for the future of finance.

Upsides of platform adoption for financial organizations: