“Understanding digital transformation in banking”
In this day and age, we are constantly looking for smarter, more efficient ways to handle our daily processes. From sophisticated machines to make our morning coffee to elaborated technology that helps us keep track of our daily workouts. We have learned to trust technology and rely on its results. So why not do the same for our business processes?
As the banking industry continues to evolve, the intelligent usage of business processes becomes more and more relevant. Here’s what you need to know about hyper automation and how the banking industry will be benefiting from it.
What is Hyper Automation?
Hyper automation is the involvement of an ecosystem of advanced automation to enhance an organization’s use of human intelligence.
TechTarget explains that the aim is to create increasingly automated business processes so that better-informed and more agile organizations can capitalize on data and insights for more efficient decision-making.
Some of the advanced technologies supported by hyper automation include robotic process automation (RPA), artificial intelligence (AI), machine learning (ML), process mining, decision management, and natural language processing (NLP).
Generally speaking, the ultimate goal of hyper automation is to augment workers’ abilities to reduce operating costs and errors.
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Why is Hyper Automation Important?
Hyper Automation can offer unlimited upside as it adopts a synergy of powers instead of the capacities of only one. Thanks to this, organizations that invest in hyper automation can benefit through:
Efficiency: Through hyper automation companies can leave time-consuming, repetitive tasks behind and focus on doing more with fewer resources. When integrations happen across automation platforms, digital transformation begins to occur.
Automation tools are supporting regulatory reporting, as well as automation of manual tasks on a 24/7 schedule with limited human supervision. It also allows for improvements in data quality and documentation, permitting the redeployment of human workers to higher-value tasks.
Flexibility: Much like scalability, flexibility is a must for growing corporations with ever-changing needs. Thanks to hyper automation, companies can take advantage of a complementary range of technologies.
Healthier bottom lines: For most companies, all efforts lead to the same goal: higher revenue and reduced costs. Thanks to hyper automation, this can be achieved through advanced analytics and powerful capabilities. Making it easier to make informed decisions, predict and forecast results, and develop benchmarks through key performance indicators.
Integration: You’ve heard us talk about the importance of integrating applications and digital technologies across processes. This can be achieved through hyper automation, as advanced technologies can better communicate with each other.
Internal Communication: Integration doesn’t only improve efficiency, but also improves communication between areas, facilitates data transfers and real time access to information.
Hyper Automation Vs. Automation
After explaining the benefits of hyper automation, we often encounter confusion in regards to its difference with automation. Here are the main differences between the two.
Technologies required to perform: With hyper automation, we see multiple machine learning, packaged software and automation tools. Whereas, with simple automation, the capabilities are less robust and reliant on automation tools.
Sophistication of technology: Robotic Process Automation (RPA) is common in automation. In hyper automation, however, we see more processes based on sophisticated artificial intelligence (AI) automation.
Outcome: Both automation and hyper automation have similar goals; to support organizational objectives. Yet hyper automation has a bigger focus on developing smart operations.
Degree of coverage: Hyper Automation looks to automate everything within the organization. Making it more comprehensive than automation, which is applied in a more ad-hoc manner.
Scope: By now you know that hyper automation is an ecosystem that interconnects all your platforms, systems, and technologies. Automation on the other hand, is conducted on individual, isolated platforms.
Digital Process Automation technology usually allows for integration with different automation technologies, allowing companies to benefit from this orchestration.
Hyper Automation in The Banking Industry
After a tumultuous 2020 full of unpredictable turns, the banking industry has been reshaped in more ways than one. A recent Deloitte article stated the importance of continuous innovations for banking. It says that
… banks should continue to explore how technologies, such as cloud, machine learning, robotic process automation, and distributed ledger technology, can simultaneously contribute to significant cost savings, while also helping increase speed, improve accuracy, and provide scalability
As banks continue to evolve and adapt, hyper automation becomes a key player in the process. Applications for hyper automation in banking include:
Lending: Getting rid of paper processes will greatly improve key operations. And will give customers opportunities for self service and higher visibility into their loan options. Technologies like RPA can extract relevant data from loan records and reduce error-prone human work.
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Marketing: No matter the industry, marketing managers understand how time-consuming marketing efforts can be. Fortunately, tasks like regular posting, email responses and even email triggers can be automated. It is estimated that this can help increase leads by as much as 451%.
Sales and distribution: Automation allows banks and credit unions to understand customers’ needs and design products and services to meet them. At the same time speeds up delivery and overall customer experience. In addition branches that still conduct in-person operations or are transitioning into remote models due to COVID, will be able to increase profitability by implementing intelligent routing.
Back-office operations: When banks streamline back-office operations, they are better able to focus on strengthening customer relations and improving the overall customer experience. Through no-code, intuitive solutions, organizations can transform their backend processes and embrace hyper automation.
Regulatory reporting: Hyper Automating regulatory processes will allow banks to easily adapt to increasingly complex regulatory reporting requirements. Even though there’s not necessarily a one size fits all answer, the sooner the banking industry starts taking steps in this direction, the sooner it’ll see changes.
The many uses of hyper automation in the banking industry make this innovation a necessary step for those in the banking industry who want to continue providing the best possible services for their customers while improving internal operations. For more information about the role Artificial Intelligence will play in the future of banking read this article.
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