How hyperautomation is transforming the banking customer experience

Few industries have embraced digitalization as aggressively as financial services. One way to illustrate how successful the industry has been in embracing new digital technologies is to look at the sheer volume of customers now comfortable with their banks using online and mobile channels.

For example, the Federal Deposit Insurance Corporation surveyed US households and found that the percentage of Americans who access their bank accounts primarily via mobile rose from 9.5% in 2015 to 34% in 2019. digital has accelerated during the COVID-19 pandemic. out of necessity, and it has reached the point where more than half of all Americans would rather never visit a real bank branch again.

Early adoption can lead to difficulties

Banks are early adopters of technology and their customers are eager to take full advantage of the innovation. However, traditional financial services companies face a big dilemma, especially when it comes to delivering the many benefits of automation to their customers. “There’s no shortage of technology innovation among banks right now,” said Amit Saxena, vice president and general manager of ServiceNow’s automation engine. “Even though many of these banks are sitting on some of the latest technology, the way the technology was thought out was to solve a specific use case and not in a way that revolutionizes the front office to middle office connection to the back office.”

The implications of this siloed, use-case specific approach to automation are many. For one thing, although several banks have invested heavily in advanced technologies, they have yet to integrate with legacy core banking systems. Not only can this be a big challenge for already overstretched banking IT teams, but the end result for bank customers can also be less than ideal.

The inability to pull together a myriad of automation technologies in a way that delivers a seamless customer experience also exposes traditional banks to competition from fintechs. “Fintechs have the advantage of starting with the latest technology stack and being cloud native in many ways,” Saxena said. “So they don’t have a lot of the technical debt that other banks have to settle and can get products to market quickly.”

Hyperautomation using a single data platform

Fortunately, there is an approach banks can take that leverages powerful automation tools such as RPA, low-code applications and document processing, as well as artificial intelligence (AI) and machine learning. , regardless of their portfolio of existing and new technologies. At the most basic level, hyperautomation takes the benefits of automation, such as improved efficiency and better use of employee skills and time, and extends them from individual processes to virtually anything a bank do.

The good news is that some banks have already established centers of excellence for different technologies, such as AI, RPA and document processing. But achieving hyperautomation means establishing a single data platform to power all automation tools. “The core of our hyperautomation strategy is not about providing all the tools. It’s about delivering the tooling on a single platform with a secure single data model,” Saxena said. “Once their workforce is trained on a single platform, all workflows benefit from all the automation tools. When this happens, things like developer productivity are increased by 3 or 4 times, because they’re all working on the same platform and data model, so any work done by a team is quickly accessible to other teams. »

Working with a single data model also provides a foundation for continuous organizational improvement. This is because a unified platform provides complete workflow visibility, so bottlenecks, manual labor, and inefficiencies become apparent and can be resolved. “With a single platform and a comprehensive automation toolkit, you can keep your automation healthy, visible, and integrated,” Saxena said. “This is where cost savings and speed to market can be improved. A single data model and connected visibility enables end-to-end continuous improvement.

A transformed workflow

One way to illustrate how hyperautomation can improve the experience of bank employees and the customers they serve is to look at how it works with a daily workflow such as mortgages. While the beginning and end of the process are simple, mortgages are complex. It involves a large amount of data collection and analysis, frequent communications and the involvement of many bank employees. Indeed, once a customer applies for a loan, the bank must determine which loan is the best, find an available and qualified loan officer, and then collect, sort and compare relevant financial data from various sources. All information collected should be tracked and documented so that internal and external auditors can review the entire process.

It’s a long process that often frustrates employees and customers. Hyperautomation can significantly improve and speed up the loan process. For example, when a customer applies for a loan for the first time, a virtual agent can immediately collect all relevant data. The AI ​​can then analyze the collected data to determine which loan is the best, and then the orchestration technology can locate the best loan agent to handle the request. Integrations and AI can then connect to systems used by banking partners to collect and compare loan data and orchestration can handle approval and processing. Since the entire workflow is digitized, tracking and reporting is simple and digitization enables predictive analytics and business insights to continuously improve the lending process.

This is just one of the many workflows a bank can improve by adopting the unique hyperautomation platform provided. While hyperautomation allows bank employees to spend their time on strategic work rather than manual tasks, the real beneficiaries are the customers. “People just expect things to work, to be fast, and not to require tons of tracking,” Saxena said. “The only way for banks to deliver this kind of experience is to focus on what happens behind the scenes.”

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