Automation Is Transforming The Future Of Banking

 The second wave of the global pandemic ie. Covid-19 has taught traditional banks across the world that being digital & facilitating technological banking & financial solutions is the only key to survive in the market during a crisis. This is the reason why these new technologies, inspired by artificial intelligence, machine learning & other types of robotic process automation (RPA) are being utilized by more & more banking & financial institutions in the hope of delivering improved productivity, cost-saving, and more comprehensive & better banking experience to their customers. 

According to our financial expert, Mr. Ngulminthang Lhanghal, several factors are causing disruptions in the banking industry including increased cyber-attacks and many more. And thereby banks across the world are adopting automation to cope with the changes and to provide better solutions to customer’s requirements & preferences.

Let’s have a look at how different ways of automation is easing & transforming the banking industry:

Quick Turnaround Time In Banking Procedures

Automation in the back office is resulting in the cutting back time spent in manual processing for customers. We know that the back office has a lot on its plate when it comes to answering customer’s requests. It is not only costly but also takes a significant amount of time and on top of that, the possibility of errors & inconsistent outcomes is an associated risk. Automation is enabling banks to provide customers with better back door procedures, eliminating human errors as well as saving costs & time. Many banks & FIs have adopted ABCD of digital banking technologies to ensure cost-efficiency and a satisfying customer experience. Here, ABCD refers to:

• Artificial Intelligence
• Big data and advanced analytics
• Cloud computing
• Devices to handle different tasks such as Know Your Customer (KYC), trade finance, and cross-border transactions.
  
  
  
  
  
  

Accelerated Customer Experience 

The success key to maintaining a satisfied customer base is to target their convenience in accessing banking services with ease. From speeding up any potential customer’s onboard processes to ensuring quicker response whenever they press a question, banks are adopting the power of automation. As an added advantage, automation is also enabling banks to focus on more critical tasks such as personalized services to their clients to fulfill their financial goals. On the contrary, banks are also using automation to seek customer’s feedback via automated email campaigns. These campaigns are helpful for banks to optimize customer experience as well as for customers to get their voice registered.

ATM Protection

ATM security has always been a bigger threat to banks & FIs but now they are on their way to reduction. Thanks to automation, ATMs now have installed cameras with them that are providing real-time images, and instant face recognition through advanced AI techniques like deep learning. For an industry like banks & FIs that are continually trying to improve customer banking experience, mitigated risks with regulations compliance, and looking for accelerated efficiency around client-focused processes, automation has a vital role to fulfill all these.

Fraud Prevention & Protection

Customers approach a bank they trust and banks are putting their efforts to maintain that trust by facilitating automation solutions to detect & prevent fraud. To start, they are focused on building more robust customer profiles for effective insights and also easing the “Know Your Customer” (KYC) processes by adopting automated verification services. Accounts payable automation is another endeavor of banks towards preventing fraud by reducing manual touchpoints and automatically fast-tracking & freezing compromised accounts. With an automated fraud detection program, the banks can detect fraudulent credit card transactions.

Marketing

Today banks can use their huge quantities of available data to bring an algorithmic approach to market analysis. After figuring out the customer’s preferences, they can run test campaigns using that data. These campaigns can help banks gather more information and improve their strategies accordingly. Not only this, banks are using chatbots as a medium for personalized marketing communication directly to the customers to know their needs. 

Security & Risk Management 

Any suspicious activities and spam emails can be detected & prevented by automation. Additionally, banks are offering customized services to their customers by conducting historical data checks, risk analysis, and eliminating human errors. 

Regulatory Compliance

With a compulsion to comply with the plethora of rules & regulations, it is difficult for the banks and FIs to plan. Automation is easing the task for the banks by automating complex banking procedures such as account structures & by ensuring end-to-end compliance coverage across all systems.

Despite all these benefits of automation in the banking industry, there is a constructive discussion among experts regarding its future effects. Some experts believe that in the upcoming future, the advancement of automation will kill the workforce but the truth lies somewhere in between the fact that businesses will be able to achieve more.