How Banking Automation is Transforming Financial Services Hitachi Solutions

As a banking professional, you know that a good chunk of your daily tasks is repetitive and mundane. Banking automation eliminates the need for manual work, freeing up your time for tasks that require critical thinking. We are building a cutting-edge solution, leveraging cloud-based APIs, that automates loan covenant checks and provides early warning indicators so clients can better manage risk if a covenant is breached. With the never-ending list of requirements to meet regulatory and compliance mandates, intelligent automation can enhance the operational effort. You will find requirements for high levels of documentation with a wide variety of disparate systems that can be improved by removing the siloes through intelligent automation. Automation helps shorten the time between account application and access.

• Branch automation is a form of banking automation that connects the customer service desk in a bank office with the bank’s customer records in the back office.
• Today, many of these same organizations have leveraged their newfound abilities to offer financial literacy, economic education, and fiscal well-being.
• Blanc Labs works with financial organizations like banks, credit unions, and Fintechs to automate their processes.
• In the future, these technologies may offer customers more personalized service without the need for a human.
• However, banking automation can extend well beyond these processes, improving compliance, security, and relationships with customers and employees throughout the organization.

In fact, a recent report [from KPMG] has revealed that RPA can reduce costs for financial services organizations by up to 75%. The goal of automation in banking is to improve operational efficiencies, reduce human error by automating tedious and repetitive tasks, lower costs, and enhance customer satisfaction. Process automation likewise creates significant improvements in banks’ external processes, such as customer service. For example using robots as the customer service agents’ assistants, it allows faster response to customer requests when robots check and retrieve customer data. POP Bank employs RPA in developing their customer satisfaction and digital services. Automation is used in processing online loan applications and customer contracts.

Conversational Data Intelligence for Banking Operations Explained

Banks need to go through numerous steps including credit checks, employment verification, and inspection before approving the loan. Even a small error by either the bank or the customer could dramatically slow down the processing of a mortgage loan. Banks deal with a plethora of customer queries, from account establishment to fraud to loan requests. When there are a large number of inbound inquiries, call centers can become inundated.

By streamlining and improving transactions, these technologies will free up workers to concentrate more on important projects. In the future, financial institutions that adopt these innovations will be in a solid position to compete. Not to mention, many banks struggle to determine which technologies should be prioritized to get the most out of their investments and which ones can align best with their business objectives.

Make Business Use Cases

Implementing automation in a large financial institution can be challenging, but it is a feasible process with proper planning, collaboration between teams, and choosing the right technology. Process automation relies on implementing strong security protocols and compliance with strict regulations to protect the confidentiality of financial data. More use cases abound, but what matters is knowing the extent of profitable automation and where exactly can RPA help banks reap maximum benefits.

IT and business departments’ conventional split into various activities causes the problem. To align teams and integrate banking automation solutions, an organization must reorganize roles and responsibilities. This hurdle implies the difficulty of process standardization for unstructured data and human-involved procedures. When choosing which business operations to automate, things can go wrong. Banks must comply with a rising number of laws, policies, trade monitoring updates, and cash management requirements. Data of this scale makes it impossible for even the most skilled workers to avoid making mistakes, but laws often provide little opportunity for error.

Top 10 RPA use cases in banking

As RPA and other automation software improve business processes, job roles will change. As a result, companies must monitor and adjust workflows and job descriptions. Employees will inevitably require additional training, and some will need to be redeployed elsewhere. Read about WorkFusion Intelligent Automation for banking and financial services, find more customer success stories, white papers and analyst reports on our website. RPA can also manage customer feedback and satisfaction data for processing by the relevant stakeholder at the bank. Most US banks take around days to originate and finish processing a mortgage loan.

RPA in accounting enhanced with optical character recognition (OCR) can take over this task. OCR can extract invoice information and pass it to robots for validation and payment processing. In addition to helping employees generate reports, RPA in banking can also assist compliance officers in processing suspicious activity reports (SAR). Instead of reading long documents manually, officers rely on software with natural language processing capabilities.

Delight your Customers by being digitally assured with AI and ML powered Intelligent Automation

As a result, an estimated 98% of IT leaders say automating business processes is vital to driving countless benefits to the business. The first approach to making banking technology more efficient is through programmatic automation. Programmatic automation involves rewriting software so that automation is fixed (or programmed) into a technology provider’s system. Examples include improvements to streamline account opening, teller hold or positive pay.

He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem’s work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School. With NLP and OCR technologies, intelligent bots can also scan legal and regulatory documents rapidly to check non-compliant issues without any manual intervention.

Risk and Compliance Reporting

Get an overview of the past and the future of automation in banking and learn why Intelligent Automation is the best solution to the challenges the banks face today. Productive Edge is a leading organization specializing in RPA implementation for banks. We partner with our clients to enable consumer-focused, technology-powered RPA experiences that reimagine and transform the way people live and work. In a continued effort to ensure we offer our customers the very best in knowledge and skills, Roboyo has acquired Procensol.

Banking processes automation involves using software applications to perform repetitive and time-consuming tasks, such as data entry, account opening, payment processing, and more. This technology is designed to simplify, speed up, and improve the accuracy of banking processes, all while reducing costs and improving customer satisfaction. With the early adoption of smart technologies, banks and financial institutions already offer full-service web portals and real-time account information. RPA can further help automate many repetitive tasks across discrete legacy systems. Combining RPA with AI-enabled automation and BPM can help to deliver more consistent services at a lower cost while ensuring regulatory compliance and deeper analytical insights. Take a look at how intelligent automation is impacting banking and financial services institutions across the globe.

Banking and Finance Automation Use Cases

With Artificial Intelligence at the core, Datamatics Intelligent Automation Platform helps banks to boost their productivity, end-customer experience, and competitive advantage. While Intelligent Document Processing (IDP) brings free-text/unstructured data in the ambit of automation, Robotic Process Automation (RPA) integrates siloed systems that don’t have APIs. Artificial Intelligence improves the self-learning capability of the ensemble exponentially improving the quality with each batch process. Unprecedented changes in the economy and industries lead to shifts within financial institutions. As more banking and financial operations switch to a primarily digital, remote environment, the need for financial automation becomes more apparent. Manual processes are not only difficult to update and track across organizations but can be difficult to navigate when adjustments are made to new workflows.

• Banks can leverage the massive quantities of data at their disposal by combining data science, banking automation, and marketing to bring an algorithmic approach to marketing analysis.
• Banking automation has facilitated financial institutions in their desire to offer more real-time, human-free services.
• Data science is a new field in the banking business that uses mathematical algorithms to find patterns and forecast trends.
• Manual processes also make it difficult to oversee any changes and track the status of the financial close.

They employ automated systems to streamline their day-to-day operations, from processing transactions to managing customer accounts. This automation enhances efficiency, reduces human error, and ultimately improves customer service. Another way to extend the functionality of RPA with exponential returns is integrating it with workflow software to automate processes end-to-end. Workflow software compliments RPA technology by making up for where it falls short – full process automation. For example, a customer interaction with a chatbot can trigger a support ticket or application process in workflow software without the customer entering a brick-and-mortar location or tying up staff.

Conversational AI and Robotic Process Automation (RPA) can determine customers’ intent through natural language interactions and direct their enquiry appropriately, reducing turnaround time to seconds. Process automation has revolutionized claims management and customer support in the financial sector. Inquiries and issues are resolved more quickly, increasing customer satisfaction and a strong reputation for the institution.

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