BFSI's Best-Kept Secret: The Power of Internal Platforms

By Pooja Kumari

September 8, 2023

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BFSI's Best-Kept Secret: The Power of Internal Platforms

In the ever-evolving landscape of Banking, Financial Services, and Insurance (BFSI), organizations are constantly seeking new avenues to enhance operational efficiency, bolster security, and elevate the overall customer experience.

One of the industry’s best-kept secrets lies in the strategic deployment of internal technology platforms. In this article, we’ll embark on a journey to uncover the hidden potential and transformative power of these internal platforms within the BFSI sector.

The Secret Sauce of Internal Platforms:

Internal technology platforms, often operating quietly behind the scenes, play a pivotal role in the BFSI sector’s ability to adapt, innovate, and thrive. These platforms are more than just a buzzword; they are the driving force behind the scenes, orchestrating processes, and systems to deliver seamless operations and enhanced services.

So, what exactly are internal platforms in BFSI, and why are they considered the industry’s best-kept secret?

Defining Internal Platforms in BFSI:

Internal platforms in BFSI are robust, technology-driven frameworks designed to streamline various aspects of the financial ecosystem. They provide a solid foundation upon which diverse services and applications can be built, ensuring consistent quality, security, and scalability. These platforms are the unsung heroes that empower BFSI organizations to remain agile and competitive in a rapidly changing landscape.

The Power of Internal Platforms in BFSI:

Now that we’ve unveiled the secret, let’s delve into the remarkable capabilities and advantages that internal platforms bring to the BFSI sector:

Streamlined Operations: Internal platforms in BFSI are the backbone of operational excellence. They automate routine tasks, facilitate data sharing, and ensure data integrity, reducing the risk of errors and enhancing overall efficiency.

Enhanced Security: Security is paramount in BFSI, and internal platforms are designed with this in mind. They enforce stringent security protocols, safeguard sensitive customer data, and provide a robust defence against cyber threats.

Scalability: As BFSI organizations grow, so do their operational demands. Internal platforms are built to scale seamlessly, accommodating increased workloads without compromising performance or stability.

Innovation Hub: Internal platforms serve as innovation hubs within BFSI organizations. They provide a fertile ground for the development and integration of cutting-edge technologies like AI, machine learning, and blockchain.

Customer-Centricity: By automating routine tasks, internal platforms free up valuable human resources to focus on personalized customer interactions. This enables BFSI organizations to deliver superior customer experiences.

Regulatory Compliance: Staying compliant with ever-evolving financial regulations is a constant challenge. Internal platforms are equipped with features that help BFSI organizations adapt to regulatory changes swiftly and efficiently.

Data Insights: Data is a goldmine in BFSI. Internal platforms not only store data securely but also provide advanced analytics capabilities, enabling organizations to extract actionable insights for informed decision-making.

Unlocking the Potential of Internal Platforms in BFSI

So, how can BFSI organizations harness the power of internal platforms effectively? Here are some key steps to unlock their potential:

Strategic Planning: Begin with a clear strategy. Identify the specific operational areas where internal platforms can drive the most significant impact.

Cross-Functional Collaboration: Collaboration is key to the success of internal platforms. Ensure that different departments within your organization work together seamlessly.

User-Centric Approach: Keep the end-users in mind throughout the platform’s development. Understand their needs and preferences to create a user-friendly experience.

Continuous Improvement: Internal platforms should evolve alongside the changing BFSI landscape. Regularly assess and update your platform to stay relevant and competitive.

Security First: Prioritize security at every stage of platform development. Implement robust cybersecurity measures to protect sensitive data.

The Three Essential Questions for Success of internal Platform in BFSI :

Thankfully, there are just three fundamental questions you must answer to ensure the success of your platform initiative in the BFSI sector:

Question 1: For Whom Are You Building the Platform?
Starting with the user and working backward is a well-known principle, but it’s not always easy to execute within large BFSI enterprises. The actual users of your internal platform may be several layers removed from the platform development process. To bridge this gap, platform engineers within BFSI should regularly engage with end-users, supported by a dedicated Product Manager.

Ideally, all stakeholders should collaborate in a shared physical or virtual space. This approach is reminiscent of the success of platforms built by BFSI professionals for their own needs. In cases where direct interaction isn’t feasible, conducting user watch parties becomes invaluable.

Question 2: Who Is Going to Build the Platform?
Ideas are abundant, but execution is the true challenge. When addressing this question in BFSI, it’s essential to form a platform team that prioritizes the unique needs of your users. This team should be small, dedicated, and cross-functional. Quality should always outweigh quantity. Within the BFSI sector, this may necessitate dedicated headcount and strong executive sponsorship.

BFSI organizations should take inspiration from digital-native companies, where internal platform teams are the norm. Building a platform in BFSI is a learning challenge, not just an execution challenge. Rapid feedback loops and shared learning are vital to success.

Question 3: How Will You Measure Success?
In the BFSI sector, a successful platform is not merely one that adheres to project KPIs like scope, timeline, and budget. Instead, success is measured through product KPIs that gauge the platform’s usefulness, adoption, and user satisfaction.

Consider metrics such as the time it takes for users to achieve their goals, the number of users and their frequency of use, and user satisfaction levels. In BFSI, frameworks like H.E.A.R.T. and S.U.P.E.R. can be adapted to evaluate the success of both consumer-facing and internal IT platforms.

Conclusion: Unveiling the Secret Weapon

In conclusion, internal platforms are the best-kept secret of the BFSI industry, providing the infrastructure that powers innovation, security, and efficiency. These platforms are the unsung heroes behind the scenes, ensuring that BFSI organizations can adapt and thrive in a dynamic environment. It’s time to embrace the power of internal platforms and leverage them to drive success in the BFSI sector. The secret is out, and it’s time to make the most of it.

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