Hyperautomation in banking: Leveraging AI decisioning to supercharge the customer experience WEBINAR MoneyLIVE

We’ve already briefly touched upon the rise of RPA in financial services, but if we delve a little deeper, the figures are compelling. The Deloitte survey revealed the technology is exceeding expectations in many organisations, with a majority of respondents saying it improves compliance (92%), quality and accuracy (90%), productivity (86%) and cost reduction (59%). https://www.metadialog.com/ Speaking to senior professionals from the financial services sector, AutoRek established that automation in banking, for example, is key for regaining competitive advantage over the next few years. TechUK is the trade association which brings together people, companies and organisations to realise the positive outcomes of what digital technology can achieve.

4 – Policy quote generation

If a customer is looking to get a quote for car, home or phone insurance, they typically need to fill out multiple forms in order to provide information to their chosen insurance prospect. This takes time and effort, and often customers will drop out half way through the process – a lost sales opportunity for the insurer. All of these challenges – and a few others – can be effectively solved with an agile BPA strategy leveraging automation to speed up banking operations.

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However, the identical assignment would be significantly more challenging to complete using an AI system because their decisions are based only on their own opaque and predefined criteria. As a result, it can be difficult to justify these choices, which can make businesses difficult with authorities if the system fails or is thought unjust. Moreover; because all devices and systems collect different types of data, not all AI systems automation in banking sector will have the same data to work with. Improvements on AI automation tools will better identify consumer preferences, react with insight and emotional intelligence soon. When added the increased speed; these improvements will definitely build more meaningful relationships with customers, maybe better than humans. Swedbank is incorporating this kind of technology and they launched an AI bot (virtual personal assistant) named Nina.

Artificial intelligence has come under fire for making prejudice against minority groups applying for loans worse. Google investigated if artificial intelligence could aid businesses in selecting borrowers, but the research was shelved because it was thought too risky from an ethical standpoint. Financial authorities in the United Kingdom have advised banks that they can only use the technology if they can put the required safeguards in place, ensuring that such prejudices are not perpetuated. They must also be able to describe the decision-making processes used by their technology. By rendering information on customers as digital assets, institutions choosing to automate bring additional benefits to systems and operations downstream from their compliance teams in the middle office. To be successful in a highly competitive marketplace, organisations need to offer an innovative, enhanced and streamlined customer experience whilst increasing transparency, reducing costs and fuelling efficiency.

Automation

For these reasons, it has become one of the fastest growing areas of enterprise investment in recent years. According to Gartner, even with the economic pressures resulting from the Covid-19 pandemic, the RPA market is expected to grow at double-digit rates through 2024. And already 80% of financial leaders have implemented, or are planning to implement, RPA. As we can see, although IA changes the labour paradigm, its implementation does not imply at all the destruction of human labour. On the opposite, it is a tool that, when well applied, frees employees from monotonous tasks, boosting their talent. The low-code automation platform is the solution as they don’t require technical expertise on the part of users and thereby enable wide-spread adoption.

The application of e-banking has been proven as an effective way to reduce the costs of operation for the financial institutions. For instance, e-banking services will allow banks to reduce expenditures on physical structures. It is believed that the e-banking will help banks to cut costs, increase revenue, and become more convenient for customers (Halperin 2011).

In fact, in 2020 global fines were above $2.2 billion, with a similar figure expected for 2021. Back-office digitization simplifies document storage, search and retrieval, and enables banks to furnish compliance related information more easily to regulators. Retail banks tend to have between 300 and 500 back-office processes to manage and monitor, leaving staff to deal with redundant tasks, excessive manual processing, and slow response times. Without intelligent automation in place, TD Ameritrade estimated they would have to hire 60 full-time data keyers to manually index the forms, extract the necessary data, and input it into the correct system of record. Using Hyperscience, however, TD Ameritrade was able to automatically process and extract data across the messy document types.