The BFSI industry faces a hidden challenge – inefficient account receivables processes. Paper-based systems for loan repayments, credit card bills, and insurance premiums create delays, errors, and frustrated customers. This translates to lost revenue for institutions and a poor customer experience. However, a technological revolution is underway, driven by e-bills, e-payments, and innovative AI-powered solutions.
Ebills & E-payments: Streamlining the Receivables Process
Efficiency Boost: A Javelin Strategy & Research study found that 72% of consumers prefer receiving bills electronically. Ebills eliminates paper waste and delays, ensuring customers receive invoices instantly.
Frictionless Payments: E-payments like ACH transfers or online portals offer convenient and secure payment methods, leading to faster settlements. A study by the Federal Reserve revealed that businesses see a 67% reduction in processing costs when using electronic payments compared to paper checks.
Enhanced Transparency: Customers can access detailed statements and track payment history at their fingertips, fostering trust and reducing late payments.
AI Revolutionizes Account Receivables
Smart Reminders & Alerts: AI-powered chatbots can send personalized reminders about upcoming payments and answer customer queries. A study by Juniper Research predicts that chatbots will save financial institutions $8 billion globally by 2023-27.
Voice-Activated Payments: Imagine paying your bills with a simple voice command using Alexa, Siri, or Google Assistant. This technology offers convenience and is gaining traction, with over 100 million users interacting with voice assistants monthly in the US alone.
Financial Wellness: AI can analyze spending habits, identify recurring charges, and track account balance trends. This empowers customers to manage their finances effectively and avoid late payments.
A Revolutionary Impact
By adopting E-bills, E-payments, and AI-powered solutions, BFSI institutions can revolutionize account receivables.
Increased Customer Satisfaction: A study by Accenture found that 75% of customers expect banks to use the latest technology
Improved Cash Flow: Faster payments and reduced processing costs lead to a healthier financial position for institutions.
Enhanced Risk Management: AI-powered anomaly detection helps identify unusual activity, potentially preventing fraud and improving loan recovery rates.
The smartest financial institutions strive to develop long-term relationships with their customers, assisting them in getting what they need and desire out of their money while also building trust and adding value. Today’s banking or finance virtual assistants are part of the future wave of digital BFSI. Expect more BFSI industries to incorporate these technologies into their mobile apps as part of their ongoing efforts to understand their customers better and assist them in understanding their money.