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Business Process Automation Reshaping the Future of Banking

  • By Content Desk
  • July 10, 2019
  • 4 minutes read
Reading Time: 4 minutes

It is essential for businesses to provide superior services in the era of volatile dynamic economies. In fact, the impact of economic forces is most strongly felt by the Banking Industry. The industry is currently experiencing a significant change driven by mounting regulatory compliance pressure, emerging competition from FinTech, changing business models and disruptive technologies.

Traditional banking sectors are enforced to rethink the way they do business. Moreover, increasing and changing customer demands, creates customer retention even more challenging than ever. Customers seek an immediate and convenient way to bank with a plethora of options and personalized services.

Globally, banks have digitized their many customer-facing, front-end operations with technology solutions. For example, the facility of online banking provides enormous convenience to customers eliminating the need for cash payment.

However, the back-end processes are still largely manual with multiple handoffs. Often, a bank has several different employees manually processing customer requests. This can lead to inconsistent results, high error rate while driving down the overall productivity.

forrester consulting survey

Thus, the impetus toward process automation through innovative technologies will enable banks and credit unions to sustain in the current economic landscape.

Business Process Automation At Center-Stage

BPA (Business process automation) helps address human-centric activities. This strategic approach uses technology to build a system architecture that facilitates various business processes with utmost precision and efficiency.

“Business Process Automation can cut operating costs up to 90 percent.” – Forrester

Internal business processes are the lifeblood of every organization. In service industries such as banking, the internal processes are more variable, depending on the customer, their request and the service needed. That’s why using obsolete business applications or siloed systems will no longer help banks to survive in the increasingly digital-first world.

Throughout history, redefining processes have changed the business landscape.

There are several use cases of BPA in different Industry/Firm. In Manufacturing, BPA can be used for order processing, engineering change control, product assembly, product line process, quality assurance and maintenance.

Similarly, there is a significant opportunity in the banking sector to streamline complex processes. IT-enabled solutions can help in rudimentary automation of several tasks such as digitizing workflows, offering paperless transactions and automating or supporting decision making while saving unnecessary cost and errors. At the same time, supporting in managing residual operations that are done manually.

Mckinsey stats that by taking full advantage of this approach, banks can often improve more than 50% of productivity and customer service.

BPA – An Approach For IT-Enable Banking Operations

Some banks are already experiencing the potential of BPA to achieve promising results.

For instance, a European bank determined to automate the account-switching process for which their management team carried out risk evaluation associated with the existing process. The analysis revealed that 70% of the application process was manual and paper-based out of which 30-40% of applications were prone to errors and required correction. In addition, they also observed a delay in the data-verification process about more than 5 days because of entering data manually into several systems.

The team decided to use business process management software along with the existing IT system to automate and streamline the workflow without hampering the current setup.

Another example, a growing private sector bank required an effective process flow automation tool. Formerly, they had a basic level application built in a legacy system that failed to handle thousands of processing requests from the overwhelming number of customers. Besides having manual process of handling paper documents often lead to wasted manpower and processing errors.

Cygnet’s expert solution architects helped the client implement an effective process flow automation system to easily automate manual activities.

This helped in bringing 100% transparency and visibility in the process, 95% Automation of user activities, 85% reduction of paper work and 70% reduction in time consumed to complete the transactions through manual processing.

Unlocking Automation’s Untapped Value

Process automation in banking has achieved a new level of maturity in terms of impact and usability. Growth of intelligent and automation technologies – like Robotic Process Automation (RPA), Blockchain, Cloud computing, Big data analytics, IOT and Artificial Intelligence (AI) – creates a profound shift in the way customers prefer to interact with their banks. In response, banks have started adopting these technologies to achieve unprecedented levels of efficiency, productivity and make complex decisions faster.

ey report

Banking sectors can leverage the potential of automation technologies in many ways. For instance, Bank of America has a virtual assistant, Erica, that handles life-like conversations with 25 million of its banking customers.

Business process automation brings several benefits for the banking industry, however, it is not a one-size-fits-all solution as banking processes can be event-based or repetitive based on customers’ requirements. In order to take full advantage of BPA, banks need to reimagine and bring agility into their current workflows.

Cygnet has significant experience in developing scalable architecture with 100% agility and speed for efficient business process automation. We utilize a full project life-cycle approach to BPM programs focusing on key project requirements. If you are looking to revisit process automation for upgrading your capability, get in touch with our experts at Cygnet at +1-609-245-0971 or today.

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