According to a global survey conducted by Altair, the banking, financial services, and insurance (BFSI) sector is among the leading adopters of digital twin technology and are using it to address challenges like security, fraud detection, behavioral prediction, and more. Digital twin technology creates a digital representation of a physical, real-world object or process to improve collaboration, information access, and decision-making.
Altair conducted a survey of more than 2,000 professionals throughout several industries and across 10 countries and gauged digital twin technology adoption and assessed how organizations are utilizing it, its business benefits, and impact on sustainability initiatives.
“The BFSI sector today faces a range of challenges – from new competitors to heightened consumer expectations to addressing increased regulatory demands and combatting ever-more sophisticated criminal activity. All this puts the sector under extreme pressure to deliver exceptional products and services,” said Sam Mahalingam, Chief Technology Officer, Altair. “This survey’s findings underscore how quickly and broadly digital twin technology has become a critical tool in helping financial services organizations battle these challenges and prepare for the future.”
Per the findings of the survey, the BFSI sector’s top three applications for digital twin technology are optimizing business processes (54 per cent), digitally monitoring real-time behavior (51 per cent), and predicting future behavior using predictive analytics (51 per cent). It further added that BFSI’s emphasis on applying digital twin technology for monitoring and predicting is unsurprising, since these functions allow teams and organizations to better prevent fraud, monitor and predict customer/borrower behavior, track customer satisfaction, and more.
Key findings
Widespread adoption: 71 per cent of BFSI respondents said their organizations already leverage digital twin technology, trailing only the automotive and heavy equipment industries. Of BFSI respondents who said their organization currently leverages digital twin technology, 97per cent said the technology was important to their organization, and 71 per cent of those respondents said digital twin was very important to their organization.
Personalization, real-time monitoring, and safety rank high: BFSI respondents were the most likely of any industry to say digital twin technology had the greatest positive impact on ‘personalization of products and services’ at 32 per cent. The data also confirms the industry’s emphasis on using digital twins for ‘real-time monitoring and control’ at 38 per cent and ‘efficiency and safety’ at 33 per cent, which are important factors when tied to predictive analytics regarding customer behavior.
Sustainability: 93 per cent of BFSI respondents whose organization currently uses digital twins said it helps them create more sustainable financial products and processes. 83 per cent of BFSI respondents said their organization is either currently using, or plans to use, digital twins to reach their sustainability objectives with 56 per cent of those respondents’ organizations currently using the technology.