Damian Maggio–Signification of Financial Services and Benefits of Digital Transformation

1. Signification of Financial Services and Benefits of Digital Transformation Financial service is part of financial system that offers diverse types of finance via various credit instruments, financial services and products. In financial appliances, we come across bills, cheques, debt instruments, promissory notes, letter of credit, etc. In financial products, we come across varied types of mutual funds, extending different types of investment opportunities. In addition, there are also products such as debit cards, credit cards, etc. The presence of these financial institutions promotes saving, production, investment etc. Here is the importance of financial services mentioned below: • Expands activities of financial markets. • Vibrant Capital Market. • Economic Growth. • Economic Development. • Ensures Greater Yield. • Minimizes Risks. • Maximizes Returns. • Promotion of Domestic & Foreign Trade. • Promotes Investments. • Balanced Regional Development. • Promotes Savings. Financial Services offered by different financial institutes • Leasing. • Factoring. • Hire Purchase Finance. • Merchant Banking. • Credit card. • Book Building. • Housing Finance. • Asset Liability Management. • Portfolio Finance. • Credit Rating. • Underwriting. • Mutual Fund. • Interest & Credit Swap. Damian Maggio says that financial service sector is a category of stocks containing firms that provide financial services to commercial and retail customers. This sector includes investment funds, banks, real estate and insurance companies. Financial services perform best in low interest rate environments. A large portion of this sector generates revenue from loans and mortgages, which gain value as interest rates drop. Moreover, the business cycle is in an upswing, the financial sector advantages from additional investments. Improved economic conditions usually lead to more capital projects and increased personal investing. New projects require financing, which typically leads to a larger number of loans. The financial service sector is developing at a rapid rate. The sector has seen marvelous growth in comparison to the manufacturing sector. The services now represent a significant proportion of the total economic activity in most economies. The financial institutions such as insurance companies, banks, loan companies, trusts, etc. play a vital role which act as financial intermediaries.

2. Damian Maggio further says that the financial intermediation role played by the financial service sector is very essential in mobilizing savings for investment purposes. These services are unique in nature and are intangible and perishable. The product of the financial service sector is long term in nature. The banking sector is very essential to the operation of the economy and to the behavior of the government economic policy. The Financial Services industry is experiencing fast change predominantly in the digital area. Marketers are forging a path with innovative, original and creative ideas. As such, businesses are beginning to see the prospective of digital for engaging customers outwardly, but also for streamlining internal processes. This digital transformation has the prospective to integrate and streamline complete business processes to augment business performance. Damian Maggio talks about the benefits of adopting digital ways of working in financial sector:  Today, a large number of executives are placing the highest priority in actively managing their bank’s reputation or brand. There are some of the financial institutions who use brand management software to align and educate their internal teams about what their brand stands for. Their people know how to communicate externally in a steady voice, thus building a great brand experience for their customers and prospects on and off-line.  A positive customer experience begins with every internal team within your business understanding their role in delivering that experience. Put in place processes and tools to teach staff about your organisation’s most valuable marketing asset, your unique brand promise, allowing them to deliver a positive and consistent brand experience through your whole customer journey.  Most organizations have failed to acclimatize their internal processes for digital. Streamlining operations saves money, time and allows your teams to be more competent. Most of the wealth management company, uses a Workflow system for marketing production, replacing a legacy process and automating the addition of compliance teams. They have seen significant time savings and almost eliminated user error.  A top priority for marketers in the financial service industry is growth and retention of their customer base.  Companies that have embraced digital transformation are more profitable than their average industry competitors and enjoy a higher market valuation.  Technology enables you to use, manage, and exploit all the different digital channels and touch points available in digital marketing era. There are several marketing automation and brand management systems available to help control the content you are placing in these digital channels. The key is to manage and centralize all your marketing content in one cloud-based platform, and to mechanize sharing via permissions and passwords to achieve consistent messaging and a powerful brand.  Only a few people think their firm has the correct state of mind to survive and thrive in the digital age. Embracing technology and using it to enhance business processes creates a company culture that persuades creativity and innovation. This is why Damian Maggio says that there are several benefits of digital transformation in financial services.