DIGITAL TRANSFORMATION IN FINANCIAL SERVICES INDUSTRY- A CRITICAL ANALYSIS

Digital transformation is happening at a faster pace across sectors throughout the world. The financial services sector is leading in digital transformation as the transformation is expected ensure greater financial inclusion and produce greater transparent investment climate, thus motivating investors to go in for extensive investments. Savings of public will have to be channelized well in an economy so that such savings are becoming productive investments and offer fair returns to investors. The Financial System of an economy will have to provide greater room for investors in designing investment strategies which would in turn help them in attaining investment goals. The financial system will also have to aim to provide benefits of investments, to all types of investors, say large investors to small investors equally. Financial inclusion is the key objective of a financial system, which could be easily achieved through digitization of financial services. Secondly, financial system administration demands high transparency and that needs good documentation process, which could be achieved through use of right digital technologies such as Block Chain, Artificial Intelligence etc. So, digital transformation facilitates its participants to get access to certain documents remotely and through which process could be speeded up and facilities can be extended to people in demand at right time. There are a few challenges in effective implementation of digital transformation strategy within the financial services systems such as people still believe in cash-based transactions, perceive bank investments is the better investments among all other investment avenues and want to have longer documentation processes. The participants in the financial system will have to face such challenges to reap the benefits of digitization in carrying out financing and investment activities in an economy.