Digital twin technology is revolutionizing industries worldwide, and a recent global survey conducted by Altair reveals that the banking and financial industries are among the leading adopters of this groundbreaking technology. Traditionally associated with designing physical products, digital twin technology is now being utilized in the banking, financial services, and insurance (BFSI) sector to address critical challenges such as security, fraud detection, and behavioral prediction.
What is Digital Twin Technology?
Digital twin technology involves creating a virtual representation of a physical object or process, enhancing collaboration, information access, and decision-making. Altair’s survey, which involved over 2,000 professionals from various sectors across 10 countries, assessed the adoption of digital twin technology and its impact on sustainability initiatives and overall business benefits.
The Impact on BFSI Sector
The BFSI sector faces an array of challenges, from increased consumer expectations and regulatory demands to combating sophisticated criminal activities. According to Sam Mahalingam, Altair’s Chief Technology Officer, digital twin technology has rapidly become a critical tool for financial service organizations to overcome these challenges and prepare for the future.
Applications of Digital Twin Technology in BFSI
The survey revealed that the BFSI sector primarily utilizes digital twin technology for optimizing business processes, monitoring real-time behavior, and predicting future behavior using predictive analytics. These applications allow organizations to prevent fraud, monitor customer behavior, track customer satisfaction, and more effectively meet their objectives.
Adoption and Knowledgeability
The survey demonstrated that 71% of BFSI respondents already leverage digital twin technology, which places the sector just behind the automotive and heavy equipment industries. Moreover, BFSI respondents showcased the highest level of knowledge about digital twin technology, with 64% claiming to be highly knowledgeable, exceeding the overall survey average.
Notable Findings and Benefits
In terms of notable findings, BFSI respondents recognized the positive impact of digital twin technology on personalization of products and services, real-time monitoring and control, and efficiency and safety. The BFSI sector also stands out for its use of digital twins for behavioral modeling, surpassing other industries surveyed.
Sustainability, another crucial aspect, emerged as a top benefit, with 93% of BFSI respondents stating that digital twins contribute to the creation of more sustainable financial products and processes. In line with consumer demand for greener banking, 83% of BFSI respondents also reported that their organizations are either currently using or planning to use digital twins to achieve their sustainability objectives.
To explore the survey methodology and access the full report, please visit the [Altair website](https://www.altair.com/). Altair’s digital twin solutions provide powerful tools to unlock the full potential of this technology and drive innovation for organizations in various industries.