Banking
Workflow automation in banking
Banking and financial services have long been synonymous with lengthy, time-consuming, and complex processes with extensive paperwork. However, fintech solutions and digital-only banks have now transformed how we look at banking services, with a majority of customers preferring the convenience, speed, and accuracy that digital banking brings. Fearing they might lose revenue to fintech companies, banks are now increasing their IT investment, with the banking and finance industry's global IT spending set to reach $742 billion by 2024. As traditional banks continue to focus on banking automation, here are some of the things to keep in mind as they continue to leverage BPO banking services to bring automation into the banking industry.
Need for automation in the banking industry
With their increasing IT investments, the banking and finance industry has evolved significantly over the past few decades. Software solutions like marketing automation (MAS), enterprise resource planning (ERP), and Customer Relationship Management (CRM) are streamlining some of the most crucial operational workflows, allowing banking institutions to focus on their core services.
However, despite access to these BPO banking services, many banks are still stuck with disparate systems and manual processing methods that cost time and money while being susceptible to inaccuracies and inconsistencies. This negatively impacts not only customer experience but also productivity and satisfaction among employees. Embracing banking automation, on the other hand, can help streamline and optimise banking process workflows for enhanced productivity, faster customer service, and lower costs.
Benefits of workflow automation in banking
Automating core banking workflows is one of the first steps in streamlining the processes, eliminating redundancies, and optimising the overall operational model. It can also help incorporate resilience, flexibility, and efficiency into banking workflows while aligning the operations with overall business objectives and improving customer experience. Additionally, some key benefits of automation in the banking industry also include:
- Reduced employee workload
- Reduced time and cost for tasks
- Increased agility and flexibility
- Enhanced customer experience
- Improved customer trust and loyalty
- Improved regulatory compliance
Automating routine, repetitive tasks can help reduce human intervention in day-to-day activities, freeing up the employees to focus on core services-related tasks.
Automating and streamlining banking processes eliminates repetitive or redundant steps, reducing the time and cost associated with these tasks.
Automation ingrains flexibility and agility in banking operations, opening up opportunities to change and adapt per market conditions and customer expectations.
Increased agility and flexibility also means speedy service and better customer service across various channels. This adds to the overall customer experience and satisfaction.
An extension of the point above, a better customer experience and accurate services reflect in improved customer trust and loyalty, which are crucial in today’s evolving landscape.
Automated risk and compliance management tools can help banks detect and prevent fraudulent practices, stay on top of seasonal audits and ensure ongoing compliance with the ever-evolving regulatory landscape.
Banking automation in action
The potential of banking automation and process workflow management is no longer theoretical, with fintech and digital banking solutions demonstrating how banking automation can help the banking and finance industry evolve with time. Although automation may prove to be more effective in some banking operations than others, it has the potential to revolutionise customers' banking experience nonetheless. Some of the most successful use cases of banking automation – that are changing the contemporary banking landscape – include:
- New account opening
- Know your customer (KYC) operations
- New customer onboarding
- Loan processing
- Fraud mitigation
- Risk and compliance management
- Marketing
- Customer experience management
These are just some of the examples of workflow automation that are changing the banking industry, with many strong contenders emerging to enhance performance efficiency and customer experience further. Thus, setting up banking automation as a banking and finance industry game-changer, we can no longer ignore.
How can Infosys BPM help with banking automation?
With the banking industry embracing automation to streamline operations, reduce costs, and deliver enhanced business value, partnering with the right BPO banking service provider has become critical to delivering the right customer experience and surviving in today's digital landscape. Infosys BPM's bpm for banking offer you a suite of specialised services that can help banks transform their operating models and augment their performance.
