Digital process automation is quickly becoming a standard for businesses in many industries, and banking is no exception. Banks are looking to leverage digital process automation technologies to reduce costs, improve customer service, and streamline processes.
Intelligent Automation can speed up and redefine internal banking operations to generate greater efficiencies in anything by introducing new products to enhance customer experience. As resilience and adaptability are essential to delivering outstanding service levels in operations, these characteristics can make or break the introduction of new goods and services.
Legacy banks will put more of an emphasis on the digital experience for consumers in 2023 in an effort to keep up with younger rivals. This is fueled by partnerships between fintech companies and banks and the challenge posed by emerging fintech companies vying for market share from legacy banks.
In this blog post, we’ll explore some of the current trends in digital process automation for the banking industry as well as what we can expect from the future of this technology coming from a team of tech professionals from Connections Consult.
Banks Will Increase Their Investment in AI
In order to improve the effectiveness and efficiency of their operations, the banking sector continues to place a strong focus on digital transformation. Thus, Robotics Process Automation (RPA) is quickly becoming one of the most popular tools for banks looking to automate their processes.
RPA uses software robots to automate mundane and repetitive tasks such as data entry and compliance checks. This type of automation allows banks to focus on more complex tasks while still meeting regulatory requirements in a timely manner. Additionally, RPA can be used to generate reports that help banks identify patterns or areas where they can improve efficiency.
Automated Solutions for Open Banking
The application of artificial intelligence (AI) and machine learning is a trend that is getting a lot of attention but is still very difficult for enterprises to adopt and deploy. Banks and credit unions are utilizing advanced analytics to increase the accuracy and efficiency of operations as well as to give clients a more individualized experience. This goes beyond employing AI and machine learning to improve cybersecurity and decrease fraud. Promoting financial well-being includes making time-sensitive, customized product suggestions to customers. Open banking has the potential to help banks better compete with fintech firms and other non-traditional competitors in the market by enabling them to offer their clients more cutting-edge goods and services.
The improvement of customer experience and engagement (24% with significant progress) and leadership support of digital transformation efforts (34% with significant progress) were the two areas with the greatest progress when global banking executives were surveyed by Digital Banking Report about their digital banking transformation progress over the previous year. Curiously, the field of changing legacy systems showed the least amount of improvement, with 60% showing moderate (43%) or significant (17%) advancement.
Wider adoption of cloud base RPA Banking
One of the most important RPA trends, in the Finance & Banking industry, as well as other sectors, that we need to keep an eye on, is the transition to a full cloud-based RPA solution. Most suppliers currently provide on-premises technologies that can be used to create robots that automate commonplace and laborious operations. The availability of RPA solutions on the cloud, where more companies are storing their data, makes sense in order to speed up system integration and data access. Companies may scale up and down their RPA infrastructure using cloud-based solutions without having to spend money on extra hardware. It will also assist in lowering maintenance and infrastructure costs for IT.
There are many obstacles in the way of banks moving more of their workloads to the cloud. Moving cloud workloads was highlighted as a barrier by 58 percent of financial services firms, according to Flexera’s 2022 State of the Cloud survey. Navigating privacy laws in multiple international countries will continue to be a challenge for financial institutions as they move workloads to the cloud in 2023. Information security and setting up controls for both customer and bank data will continue to be difficult tasks. Consumer, business, and small-enterprise deposits, payment processing, and cybersecurity workloads are all shifting to the cloud.
The banking industry has been slow to adopt new technologies, but it appears that it is now beginning to embrace digital process automation more readily than ever before. With new technologies like robotics process automation (RPA) powered by artificial intelligence (AI), all being leveraged by banks around the world, it’s clear that digital process automation will continue to play an integral role in how financial institutions operate going forward into the future.