Automation in Banking Hexanika Think Beyond Data

The use of predictive analytics can dramatically improve the management of operations in several ways. First, it enables operations leaders to be more precise and accurate in their predictions. A power-boosting transformation strategy that injects intelligence and digital capabilities into their operations, across technology, processes and people, is essential for banks to stay competitive.

These technologies can lead to higher automation and, when deployed after controlling for risks, can often improve upon human decision making in terms of both speed and accuracy. The potential for value creation is one of the largest across industries, as AI can potentially unlock $1 trillion of incremental value for banks, annually (Exhibit 1). First, as the data show, automation, by reducing the cost of operating a business, may free up resources to invest in other areas. Leveraging process mining and digital twins can help banks to gain process intelligence and identify back-office processes to automate. AI and NLP-enabled intelligent bots can automate these back-office processes involving unstructured data and legacy systems with minimal human intervention. Hyperautomation can help financial institutions deal with these pressures by reducing costs, increasing productivity, enabling a better customer experience, and ensuring regulatory compliance.

Banks have failed to scale in key innovation areas

When large enough, these opportunities can quickly become beacons for the full automation program, helping persuade multiple stakeholders and senior management of the value at stake. This in turn reduces employee workloads, helping them to feel more fulfilled and productive as they are equipped with the data and the time they need to provide the best possible experience for customers. Banking automation is applied with the goals of increasing productivity, reducing costs and improving customer and employee experiences – all of which help banks stay ahead of the competition automation in banking operations and win and retain customers. The AI-first bank of the future will need a new operating model for the organization, so it can achieve the requisite agility and speed and unleash value across the other layers. Third, banks will need to redesign overall customer experiences and specific journeys for omnichannel interaction. This involves allowing customers to move across multiple modes (e.g., web, mobile app, branch, call center, smart devices) seamlessly within a single journey and retaining and continuously updating the latest context of interaction.

These automation solutions streamline time-consuming tasks and integrate with downstream IT systems to maximize operational efficiency. Additionally, banking automation provides financial institutions with more control and a more thorough, comprehensive analysis of their data to identify new opportunities for efficiency. First, banks will need to move beyond highly standardized products to create integrated propositions that target “jobs to be done.”8Clayton M.

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Automation is fast becoming a strategic business imperative for banks seeking to innovate[1] – whether through internal channels, acquisition or partnership. Implementing integrated automation solutions will enable banks to streamline the very tasks that are holding them back – removing manual intervention and ensuring that simple tasks are handled with speed and agility without error. As we contemplate what automation means for banking in the future, can we draw any lessons from one of the most successful innovations the industry has seen—the automated teller machine, or ATM? Of course, the ATM as we know it now may be a far cry from the supermachines of tomorrow, but it might be instructive to understand how the ATM transformed branch banking operations and the jobs of tellers.