BFSI digital transformation: Lessons from industry experts

Banking, financial services and insurance organizations need to always be looking to offer the best digital experiences for customers. Delivering these changes tends to require changes to the way they approach development. 

For many, that means using the latest technology, including AI and MongoDB, to accelerate and improve the way they operate.

While awareness of the need to keep pace with the latest developments is widespread, pulling it off while achieving the desired goals is another matter. McKinsey research shows while 90% of companies have launched some kind of digital transformation, typically only a third of the expected revenue benefits are realized. 

We recently hosted a webinar, entitled Transforming Digital BFSI Experiences with MongoDB and AI, to help attendees successfully navigate their digital transformation journey and gain the results they’re looking for. 

Expert advice on digital transformation

The session, moderated by Chandan Nallal, Customer Success Team Lead at 3T Studio, featured speakers Abhishek Bagga, Enterprise Solutions Architect at Cognizant, Kobir Ahmed, Enterprise Account Executive at 3T Studio and Aswhin Gangadhar, Senior Solutions Architect at MongoDB. 

Each brought their unique perspective on how organizations can modernize legacy systems while ensuring compliance, efficiency, and seamless AI integration… and all with minimal disruption to operational stability. 

We’ve pulled out some of the webinar points of discussion and key takeaways for your BFSI digital transformation.

Are legacy systems holding your enterprise back?

The panel touched on one of the most common blockers to digital transformation for BFSI organizations – legacy systems. 

It was noted that some financial institutions still rely on systems that are 25–30 years old. These outdated infrastructures can see organizations fall behind and miss out on modern applications, real-time analytics and other digital services. They can also cause issues including:

• High maintenance costs: Keeping old systems running is expensive and time-consuming.
• Lack of flexibility: Traditional, rigid architectures make it difficult to adapt to new regulations and customer needs.
• Data silos: Older systems struggle to connect different types of data, leading to inefficiencies.

How MongoDB helps with flexibility, security, and compliance

Many in BFSI have turned to MongoDB’s document-based, NoSQL database thanks to the benefits it offers for data management, such as its ability to handle structured, semi-structured, and unstructured data all in one place.

MongoDB deals with huge datasets with ease and high-throughput operations makes it easier to scale without a negative impact on performance. For BFSI, which deals with an ever-growing amount of digital transactions, IoT devices, and research and development processes, this is incredibly useful. 

MongoDB’s cloud-based solutions allow real-time analytics and AI-driven insights. And, in highly-regulated industries, security and compliance need to be prioritised. 

MongoDB also provides built-in features like:

Data encryption: This keeps your data safe (both in transit and at rest), preventing unauthorised access to confidential customer information and financial transactions. 

Its fine-tuned access controls can prove useful in helping financial organizations meet regulations like GDPR, FCA and PCI DSS.

Auditing: MongoDB audit logs make it easy to track user activity and changes. This gives you a clear overview of database interactions, offering both operational transparency and the ability to dig deeper and investigate. Again, good news for keeping customer data safe and meeting a range of regulatory requirements.

How to modernize without disrupting operations

One of the real-world examples shared during the webinar showed the efficiency and cost savings possible with modern technology. Attendees heard how an Australian bank has reduced the time taken to produce test cases from 80 hours to just 5 minutes with the help of AI – an incredible time saving.

For many in BFSI the first challenge is knowing where to start their digital transformation. The panel offered advice on how to update systems while keeping business running smoothly:

• Start small: Pilot projects (like testing in a specific region) help manage risk while proving value.
• Use microservices and reverse bridges: Breaking big systems into smaller, modular parts makes them more adaptable. Overcoming migration blockers is also key. By setting up reverse bridges (allowing data to move both ways) as part of a migration process makes it easier for old and new systems to work together. 
• Democratize access: Use tools that simplify MongoDB and give everyone in your team access to the data they need. For example, user-friendly no-code tools, like a Visual Query Builder, can remove the need for technical know-how that manual query building calls for. This means more time can be spent analyzing data. This could prove especially useful for teams managing governance and compliance (who wouldn’t necessarily have the technical skill sets to access data), as it removes the need to wait on the developers to provide them access.

How to make AI work for your business

The discussion also focused on using AI where it adds real value, particularly in areas like fraud detection and credit scoring. AI helps financial institutions assess risk more accurately and prevent fraud more effectively. 

Another key benefit is real-time decision-making. The combination of MongoDB and AI can be a game-changer for data insights. By shifting from batch processing to real-time AI, businesses can react faster and deliver better customer experiences.

The conversation also touched on how to make the most of the financial services sector’s inherently multimodal data. For example, fraud detection involves both structured data, such as transaction records, and unstructured data, like uploaded documents. 

To process and analyze this information effectively, organizations should store AI-generated data, such as vector embeddings, alongside traditional data. This can bring a range of benefits, including real-time fraud detection, putting you in a strong position to identify and stop fraudulent activity as transactions occur. MongoDB has a crucial role in this process, providing the flexibility needed to structure data for AI-driven applications.

Compliance and risk management: the backbone of digital transformation

Governance, risk, and compliance are critical when modernizing BFSI operations. And there are a number of ways that MongoDB and third-party tools can help transform data governance.

The panel highlighted two key areas of focus. First, businesses need to adapt to regulations quickly. Agile systems help organizations stay ahead of regulatory changes and avoid costly penalties. 

Second, better data management is essential. NoSQL databases allow for faster and more accurate data retrieval, making compliance easier to manage.

Key takeaways for BFSI leaders

To succeed in digital transformation, BFSI organizations should:

• Focus on real business benefits. Instead of chasing trends, prioritize solutions that improve customer experience and operational efficiency.
  
• Be flexible, not imitative. Develop modernization strategies that align with your company’s unique needs rather than copying competitors.
  
• Adopt emerging technologies thoughtfully. Blockchain, digital currencies, and AI-driven analytics will be central to the future of BFSI, but they should be integrated with a clear purpose.
  
• Take a holistic approach. True transformation requires balancing new technology with process improvements and employee empowerment.
  

By focusing on these principles, BFSI leaders can drive meaningful change and make sure their organization is resilient and ready for whatever the future holds. To get the full story, view the Transforming Digital BFSI Experiences with MongoDB and AI webinar on-demand.