Altair has released results from a global survey that reveals the widespread use of digital twin technology in the banking and financial industries.
Digital twin technology creates a digital representation of a physical, real-world object or process to improve collaboration, information access, and decision-making.
The global survey of more than 2,000 professionals across several industries and ten countries gauged digital twin technology adoption and assessed how organisations utilise it, its business benefits, and its impact on sustainability initiatives.
Although digital twin technology is typically associated with designing physical products, according to the survey, the banking, financial services, and insurance (BFSI) sector is among the leading adopters of digital twins, using the technology to address challenges like security, fraud detection, behavioural prediction, and more.
According to the survey, the BFSI sector’s top three applications for digital twin technology are optimising business processes (54%), digitally monitoring real-time behaviour (51%), and predicting future behaviour using predictive analytics (51%).
Additionally, 71% of BFSI respondents said their organisations already leverage digital twin technology, trailing only the automotive and heavy equipment industries. Overall, BFSI respondents said “highly knowledgeable about digital twin technology” at 64% – a number 14 points higher than the overall survey average (50%).
Of BFSI respondents who said their organisation currently leverages digital twin technology, 97% said the technology was “important” to their organisation, and 71% of those respondents said digital twin was “very important” to their organisation — tied for the highest in the survey and eight points higher than the overall average of 63%.
Meanwhile, BFSI respondents noted that digital twin technology had the greatest positive impact on the “personalisation of products and services” at 32%. The data also confirms the industry’s emphasis on using digital twins for “real-time monitoring and control” at 38% and “efficiency and safety” at 33%, which are important factors for predictive analytics regarding customer behaviour. Compared to the other 11 industries surveyed, the BFSI sector is likelier to use digital twin technology for behavioural modelling (50% vs. 30% survey average).
About 93% of BFSI respondents whose organisation currently uses digital twins said it helps them create more sustainable financial products and processes — the third-highest proportion among the other industries within the overall surveyed (behind consumer electronics and the architecture, engineering and construction sectors).
This is consistent with the recent uptick in consumer interest in greener banking products and services promoting sustainable practices and investments.
About 83% of BFSI respondents said their organisation is either currently using, or plans to use, digital twins to reach their sustainability objectives, with 56% of those respondents’ organisations currently using the technology.
Sam Mahalingam, CTO, Altair, noted that the BFSI sector 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.
The survey’s findings underscore how quickly and broadly digital twin technology has become a critical tool in helping financial services organisations battle these challenges and prepare for the future, he added.
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