Driven by technological advancements, companies across the financial services sector are showing an increased appetite for digitalisation to improve their customer experience (CX) strategies. A carefully planned, robust, tech-enabled transformational journey has made operations more efficient, reduced risks and helped BFSI sector meet customers’ needs and expectations, thus improving accessibility.
Here’s how.
Engaging innovatively
From Data Engineering, Cloud Computing, and Process Automation to Artificial Intelligence/Machine Learning, including predictive models, companies are using technologies to offer customer service with a difference. Take embedded finance/insurance, for instance. It is revolutionising the insurtech industry by enabling transparent, secure processes, improving efficiency, reducing fraud, and enhancing trust among customers and clients.
API-driven models transform traditional insurance by making it accessible and relevant within everyday digital experiences, driving growth and fostering deeper engagement. API-driven models improve efficiency, reduce customer acquisition costs, and ease the customer journey. Advanced tech has also enabled hyper-personalised marketing campaigns that deliver product messaging that resonates with individual customers, thereby significantly enhancing customer engagement.
Data for intelligence financial services
AI in the insurance industry is changing the game. Insurers and insurtech firms are transforming raw data into actionable insights for pricing, risk assessment, and personalised engagement. By integrating internal and external data sources, carriers can predict behaviours, detect fraud, and optimise underwriting with greater precision. As digital ecosystems expand, real-time intelligence becomes essential for delivering customised experiences and sustaining competitive advantage.
Enabling convenience
An omnichannel customer service model that converges all touchpoints is one of many ways technology has enabled convenience. For instance, AI-powered tools have enriched the underwriting process by analysing large amounts of data to assess risk more accurately, enabling the development of personalised insurance products. Predictive analytics and machine learning models have streamlined claims processing, allowing insurers to estimate future claims payments and speeding up the process for customers.
Additionally, it has enabled insurers to understand customers’ buying habits, creating targeted marketing campaigns and suggesting optimal coverage based on individual needs. Collaborating with fintech players has helped them streamline their payment processes and improve the payment experience.
Chatbots have further enhanced transactions and customer interactions. Many companies are using multi-lingual chatbots that can also be accessed through the WhatsApp interface. These enable conversations between organisations and people, helping them get their queries answered swiftly. These tools can also support other tasks, such as downloading statements and sending reminders. Technology is also being used to analyse how call centre agents converse with customers and to monitor their ability to resolve customer queries.
Tech-powered responsible CX
Technology has helped insurance companies introduce innovative products that enhance the consumer experience and expand the scope of insurance services in India. According to reports, the total premium in India’s insurance sector is expected to grow at an average rate of 7.1 per cent, compared to the global growth rate of around 2.4 per cent during 2024-28. This increase in business is a signal for companies to continually build their digital muscle to better meet customers’ growing demands.
As we have already witnessed, advanced technologies can alter the sector’s course by increasing operational effectiveness, opening avenues for innovation, and further deepening customer relationships. Firms that adopt responsible technological practices and leverage leading industry insights will be better positioned to seize these opportunities in the ever-evolving BFSI landscape.
Future forward to experience economy
In the coming few quarters, the key to winning in the “experience economy” is to treat AI not as a cost-cutting tool, but as a way to humanise interactions at scale. Trust, transparency, and data sovereignty have become core pillars of the customer experience.
The author is Chief Technology Officer, Zopper. Views are personal.
