Intelligent Automation (IA) is the future of the financial industry, and recent events are speeding up its adoption. In 2017 McKinsey reported that newer technologies were causing disruption in financial institutions. It also explained that companies adopting digital alternatives would increase their profits and productivity as a result. This has been confirmed by Accenture. Which reported that digitally focused and digitally active banks saw a net revenue growth of 1.2 and 0.5 percent respectively, whereas the rest had zero growth.
However, according to the Digital Banking 2019 Report on Retail Banking Trends and Predictions almost half of organizations surveyed said their digital transformation journey was in the early stages; only 7% believed they are a ‘digital organization’. Banks and Credit Unions must speed up their transformation. With this said, let’s look at some incentives that digital transformation presents to the banking industry.
4 Goals to achieve with Intelligent Automation
Rather than using human clerks to support customers, open new accounts, fill loan applications, enter and send data, etc., algorithm powered machines are now doing part of this job. This is allowing financial institutions to reduce the time spent on inefficient processes. What then, can automation help banks and credit unions to achieve:
- Provide a streamlined, consistent customer experience to differentiate from competitors and build stronger relationships.
According to Harvard Business Review, emotionally connected customers are 35 percent more valuable than highly satisfied customers. Therefore the challenge that banks and credit unions present is even greater, and a traditional approach would just not be effective. Intelligent Automation is a cost-effective solution to create an optimal customer journey where every step and touchpoint in the buying cycle is streamlined, efficient, consistent, and personalized. IA is not only a cost-saving investment but also a customer retention tool to generate increased profitability.
- Increase productivity in order to counteract the reduced revenue growth.
Accenture reports that by 2025, as much as 15% of banks’ global payments revenue, is likely to be displaced by the growth of digital payments and competition from non-banks. As profit margins remain low, and with the effects the industry expects from Covid-19 on sight, it is vital to invest in this kind of revenue-generating alternatives to reduce the time invested and money spent. Intelligent Automation allows banks and credit unions to process a larger number of requests faster and cheaper.
- Add value and gain competitive advantages.
Traditional Banks are now competing not only with each other but also with tech giants entering the fray. Banking Dive reports that Google in partnership with Citigroup and the Stanford Federal Credit Union plans to launch checking accounts in 2020. Amazon and Apple are also considering it. According to Kearney, Europe’s neo-banks could have up to 85 million customers by 2023. This number represents about 20% of the population over the age of 14. One of the main reasons is the digital preference of younger generations, which consider self-service to be the second most important element when choosing who to bank with.
- Reduce risk and fees associated to compliance-related activities
Relying on human work to control and execute risk evaluation or compliance-related activities is lengthy and complex. It is also subject to human error, lacks precision and is an unnecessary cost. Deloitte reports that compared to spending levels prior to the 2008 financial crisis, compliance operating costs increased by over 60 % for retail and corporate banks. Adopting IA means reduced associated cost, reduced or zero human error and higher result reliability.
To sum up; digital banking disruption is going to impact every bank and credit union in the coming decade. The industry is plagued with outdated technology, systems and regulations. The switch in the way the industry does business is inevitable in order to remain in business. The good news is, that intelligent automation is now accessible to all financial institutions regardless of size and capital. Automation is also a revenue and savings generator. So, do not delay!
Savings generated by Intelligent Process Automation
A large number of banks and credit unions’ back-offices processes can be streamlined. Activities, projects, tasks, communications, people and workflows. In areas such as Customer Services, Human Resources, Information Technology, INFOSEC, Vendor Management, Risk Management, Facility Management, etc. The associated savings in time and money, as well as enhanced results, are considerable.
Time Saved with Automation per process
Virtus Flow for Banking Process Automation
Our platform has been specifically thought for the banking industry. It serves as a powerful solution to streamline workflows outside core processes. Virtus Flow is a No-Code platform, which means that anyone can design and create his/her own workflows in minutes without the assistance of skilled IT engineers. We designed it to offer convenience to the organization and the user. It combines multiple tools in one and reduces the number of software that organizations need to purchase and users learn to use.
Virtus Flow also opens many possibilities for process redesign, employing bots, APIs, and humans when necessary. It orchestrates a perfect handoff as they work together. By having humans and bots collaborate, you can keep the human side of experience delivery intact, while gaining the efficiencies and cost savings of bots.
Virtus Flow Main Features
Virtus Flow’s main features are Digital Process Automation, Case Management, Dynamic Forms, Project Management, Ticket Management and Communications Management. All from a single intuitive dashboard.
Start in days with Virtus Flow’s approach! It allows you to begin optimizing your top customer journey decisions and processes in as little as 30 days. This enables you to rapidly see value from transforming customer service experience and operations without the risk of massive desktop replacements or building siloed channel systems.
See how Virtus Flow can help you save time, money and grow!
