3 Ways Hyperautomation Tech Can Improve Banking Services
Hyperautomation solutions continue to transform how banks and financial institutions operate, offering speed-to-solution by streamlining functions including customer onboarding and ensuring compliance reducing the risk involved and the cost of operations
Hyperautomation solutions continue to transform how banks and financial institutions operate, offering speed-to-solution by streamlining functions including customer onboarding and ensuring compliance reducing the risk involved and the cost of operations. In this article, Arjun Devadas, Senior Vice President, Professional Services & Operations (Americas) at Vuram, explains how adopting hyperautomation can shape banking in the future to be a delightful customer experience providing highly evolved and personalized services.
When the pandemic-induced crisis shook the world, banking was one of the industries that witnessed massive disruptions. Banks have had their fair share, from fulfilling the customer’s sudden preferences to digital platforms, the transformation of employee roles, significant instability in the global capital market, and furlough of employees. The impact of the pandemic in the industry has accelerated the adoption of emerging technologies and one such technology that promises to yield results is hyperautomation.
For starters, hyperautomation is an amalgamation of technologies like artificial intelligence (AI), robotic process automation (RPA), natural language processing (NLP), machine learning (ML), business process management (BPM), and other automation tools to automate critical processes or enhance mere automation capabilities. Industry leaders have predicted the hyperautomation-enabling market to reach $600 billion by 2022, driven by the need for digital transformation and IT automation.
Banks and financial institutions are embracing global recovery while addressing the immediate challenges to society, the economy, and the financial system. While digitization and automation were among the first steps towards resuming operations, the industry has realized that technology adoption comes with many benefits other than adding resilience throughout the crisis.
More organizations in the banking, financial services, and insurance (BFSI) sector are adopting hyperautomation to reimagine the operations adding efficiency, profitability, speed, accuracy, and resilience. By leveraging technologies like low-code BPM, RPA, and ML, businesses can complete customer onboarding, generate reports, manage data, and automate transactions quicker with accuracy that otherwise takes an extensive amount of time and human effort.
Hyperautomation can transform the workforce in an enterprise by replacing mundane and repetitive tasks with innovative work, freeing the workforce to innovate and perform value-based tasks focusing on fostering empathy and decision-making. With hyperautomation and low-code, banking operations can attain flexibility, allowing seamless collaboration across the organization.
Banks can leverage hyperautomation for regulatory reporting, marketing, sales and distribution, loan management, customer service, and back-office operations.
Consider retail banking. With the increase in online banking and digital payments, banks are trying innovative ways to offer customers a tailored experience: consumer loans, credit card processing, current, and savings account management, etc.
Let’s take the instance of customer onboarding, which involves high-valued, critical processes of knowing your compliance (KYC) and anti-money laundering (AML). RPA combined with AI can reduce much of manual paperwork. The executives need not waste time on false positives instead of focusing on mission-critical tasks like investigating high-risk accounts. Bots can be trained to analyze documents, extract data, and upload the essential information into the KYC system automatically. Bots can also assess potential fraud and bankruptcy via external sources. Not only that, but they can also answer basic questions of prospective customers and escalate the questions that may require the intervention of human representatives.
Chatbots are available 24×7 and are always ready to answer simple customer questions; With the help of application programming interfaces (APIs), data between the government regulators and on-boarders can be shared securely; analytics and machine learning can automatically assign risk scores and categorize the profiles; RPA bots perform all rule-based activities like reconciling data and sending emails.
As the banking industry evolves, adopting hyperautomation solutions plays a significant role in banking and financial operations. Given below are three ways how adopting technology is transforming banking services.
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Gaining operational efficiency
Adopting hyperautomation technologies enables banks to streamline operations, strengthen customer relations and improve the overall customer experience. Through implementing no-code, and intuitive solutions, backend processes benefit from improved accuracy, timeliness, reliability, and a high degree of flexibility. The resulting flexibility allows banks to increase operations volume without further investments in resources and infrastructure improving ROI and profitability.
Resorting RPA as a tactical solution helps achieve cost reduction and higher efficiency by replacing legacy systems without losing the human factor involved in a timely and cost-effective manner with minimal investments enabling people to focus on more critical and creative challenges.
Automating cross-functional activities enhances collaboration and communication, aligning teams and processes, leading to accountability, identifying new opportunities, and improved productivity, leading to profitability and operational efficiency.
Ensuring compliance
Meeting compliance is critical for banks to avoid fines and risk-proof operations. Automating the regulatory processes allows banks to meet the complex regulatory reporting requirements.
Also, RPA can be relied upon to enhance the accuracy in reporting, maintaining an audit trail for each step in the process for audit and regulatory requirements. Having a detailed overview of records and ensuring transparency significantly reduces financial losses due to fraud and errors.
For processing transactions, hyperautomation uses machine learning to recognize predictive patterns and trends. With high volumes of data working round the clock, a higher level of accuracy can be achieved, which is difficult to achieve with humans.
When it comes to verification and maintaining KYC checklists, banks can process details faster with data from the physical documents extracted with ICR and OCR technologies. Customer risk profiles can be verified and consolidated from multiple sources with the help of bots extracting details from various sources faster, resulting in quicker turnaround time adding speed-to-solution with banking services.
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Customer experience
Banks can deliver a delightful customer experience across all levels by adopting technology to build long-lasting relationships. RPA redefines onboarding into a hassle-free digital experience, simplifying even document-intensive areas like the KYC.
RPA bots can minimize the human effort into document verification, assessing, flagging, and monitoring risks. Hyperautomation offers the flexibility to institutions to manage high volumes of services and respond to diverse requirements from the customers and improve existing services with data-aided decisions.
As the banking industry is constantly evolving, adopting new technologies to add value and redefine itself into a highly efficient and resilient sector, hyperautomation services have an extensive role in shaping the future of banking. While adding greater efficiency and customer experience, the economy’s future will be impacted by the transformations in the entire business ecosystem redefining banking.
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